ERP and its Rapid Growth in Today’s Business World
More and more organizations are turning to ERP systems to assist in the growth and reach of their businesses. The ERP market size is expected to exceed $49 billion dollars by 2020. This cements ERPs worth and value to the business community. Looking ahead, growth rates of ERP will be between 6.9% to 7.2% in the coming years.
Since ERP systems are becoming crucial assets, it’s important that an organization’s ERP system is functioning at peak efficiency. Thus, providing the most return on investment (RoI). The best way to ensure RoI on an ERP system is to avoid common mistakes that can take a great system and turn it into a costly headache.
The Top 5 ERP Mistakes to Avoid
Mistake Number 1: Not doing careful requirements gathering
It’s critical that processes that will be controlled by an ERP system are the right processes for an organization. Specifically, automating inefficient and outdated procedures will merely highlight the deficiencies that much more.
Mistake Number 2: Not Including End-users in the decision-making process
Many times, when ERP systems are being developed, actual end users are not being brought into the conversation early enough. Oftentimes, the designers of the ERP system won’t have the first-hand knowledge that users have, and simple tweaks can increase user productivity. Feedback should be elicited from end users early in the process to obtain buy-in and stave off potential user disruption.
Mistake Number 3: Poorly Executed Implementation
Implementation can be a very challenging time. Implementation must be well thought out and, where possible, phased in gradually so as not to overwhelm users and disrupt productivity. A gradual phase-in also allows problems to be identified early and with much less impact.
Mistake Number 3: Not properly budgeting for technology staff or outside support services
Not having staff within your organization who are well trained in aspects of your ERP system can cause many issues. If an in-house staff isn’t an option, make sure that you have at the ready consultants or solutions providers who can assist with any issues that occur during not only the implementation phase of your system but for the entire lifetime of your ERP system.
Mistake Number 4: Not thinking about how your entire organization will interact with your ERP system
Today, many organizations live and breathe on mobile devices and apps. Furthermore, these devices and apps allow them to conduct business while on the go. In this regard, the way these mobile devices and apps are used and how they will interact with an organization’s ERP system must be considered. ERP systems must be tested for compatibility with favored mobile devices and solutions need to be identified if there are any compatibility issues.
Mistake Number 5: Not having a Maintenance Plan
Many IT executives get so focused on the ‘end goal’ of implementing an ERP system, that they forget to think about the long-term impact of such a system; making sure there is a schedule in place for updates, testing, and enhancements are key. This ensures having a fully functioning ERP system at the ready, 24/7/365. Without regular, scheduled maintenance, these systems can lose efficiency and can suffer major deficiencies, especially in the areas of security.
Prevention is Key
The best measure against ERP mistakes is to ensure an organization’s system has been designed thoughtfully. Secondly, an implementation must be well planned and executed. Lastly, the job isn’t over once implementation is complete. A system needs careful guidance and maintenance to reach its full potential. The best way to prevent mistakes at all critical junctures is to seek the guidance and assistance of professional solutions providers to reduce the chance of lost productivity and to prevent headaches along the way.