ERP implementation is a complex and multi-faceted project. It requires input from all levels of the organization and significant forethought to smoothly bring each phase of the project online without disrupting normal operations. Many times, ERP projects go over budget or get extended multiple times as the scale of the task continues to grow unchecked. Fortunately, there are simple solutions to keep your ERP program in check and make it successful.
Being Too Exclusive
Proper ERP design is about more than just installing a common software platform. It’s about bringing everyone together and running things more tightly and with more accurate information. This means that you will need to sit down and figure out what problems each department and division is facing to make sure that those issues can be resolved within the new program instead of exaggerated. It is very common for companies to set up an exclusive ERP team to oversee the project management, but it is extremely important that this team takes the time to gather input and doesn’t start making decisions without consulting the people who will ultimately be affected.
Not Investing Enough in Training
Training and employee buy in are another common problem that companies face when bringing in ERP. ERP usually means not just a change in how data is tracked, but can also require major changes to the way actual processes are being completed. Employees and management alike get frustrated when they feel they are having to jump through extra hoops to do the same job they’ve always been doing. To prevent this, it is important to keep all team members informed throughout the design and implementation phases, and then to follow through and show them how the new system directly benefits their work. Proper training is a short term investment that ensures the entire system will pay off in the end.
Not Enough Time or Money Allotted
Budgeting is obviously a major factor in any large system overhaul. While bringing ERP on board will ultimately save you time and money in the long run, you have to be willing to spend sufficient time and money researching, planning, phasing in, and following through. There are no short cuts here.
Not Using ERP Functionally
In some cases, companies spend a ton of money to bring ERP in for data collection and analysis, but they fail to make any real changes to their processes or programs. The end result is spending a ton of money on ERP while still relying on all of the old systems for normal operations. This just complicates things for employees and doesn’t optimize resources, meaning it will negatively impact your return on investment.
Not Planning Ahead
If everything goes according to plan, ERP will make your business more efficient, effective and profitable. This leads to growth and new developments, and allows for further system improvements in the future. As your business goes through those transitions, you need to know that your ERP system will be able to adapt with it, which means having the resources to keep the software well maintained and up-to-date moving forward.
Even small mistakes in the early stages of ERP implementation can lead to high costs in the end. The best way to prevent this is to hire a qualified team to consult with you from the very beginning and to walk you through each stage of the project. AlfaPeople has been around for years, helping retailers, manufacturers, distributors and other industries to adopt ERP software on time and on budget.