How to Solve 5 Common ERP Implementation Challenges
Enterprise resource planning (ERP) helps business reduce costs, streamline processes, manage growth and adapt to global markets. In fact, ERP can help businesses reduce administration costs by 22 percent and operational costs by 23 percent. Evidently, if your business is yet to embrace the ERP revolution, it’s high time you did. And if you’re already using it, chances are you might need a newer software, because most ERPs generally last up to 10 years.
Either way, implementing a new ERP is not a process without its challenges. In this article, we’re telling you about these ERP implementation challenges, and what you can do to avoid them.
1. Choosing the Right ERP Software
ERP software comes in all shapes and sizes, some complex and powerful. If this is the first time you’re looking into acquiring an ERP software solution, you can easily be overwhelmed by the hundreds of choices in the market, all promising excellent results. It’s very important to choose an ERP software that meets your exact business needs. You don’t want to get it wrong and start requesting updates or customization’s every few weeks. The best way to choose the right software is to know what your business needs. You’ll head into the marketing knowing what to look for.
2. ERP Integration
A typical business has at least a couple of electronic processes or systems. There is payroll, accounting, and point of sale among others. One of the challenges businesses face is knowing which of these processes need ERP integration. Do you, for instance, need to integrate your payroll system into ERP software? Will the payroll function be more effective after the integration? Such doubts, combined with a lack of sufficient knowledge on the capabilities of an ERP make integration a big challenge.
To solve this, you need to know exactly what your ERP can and cannot do. With this info, deciding on the processes that will be integrated into the ERP will be a breeze.
3. Inadequate Hardware
Did you know about 60 percent of businesses are running their systems on outdated computers and other old pieces of hardware? If you’re among these businesses, then you’ve just increased your ERP implementation challenges. Such hardware will not be able to fully support your ERP. The only way out here is to modernize your legacy hardware, or at least know how to integrate them into the digital age.
4. Change Management
A new ERP means business owners must invest money into training their employees. Unfortunately, some employees may not be open to change, or they may feel the software is too complex for them. Perhaps the old adage “old dogs don’t learn new tricks” is true!
To handle this, be sure to involve them in the ERP selection process. Let them have a say in which ERP they think is best, and they won’t have a problem learning to use it after implementation.
5. Maintenance Costs
To function optimally, your ERP system needs regular maintenance. Maintenance costs money. As a result, businesses on tight budgets may shy away from implementing ERP, or if they do, fail to undertake the necessary maintenance practices. To overcome this challenge, it helps to plan ahead of time and budget for maintenance costs. Also, settle on an ERP vendor with low maintenance costs.
ERP Implementation Challenges: The Bottom Line
For any business, ERP software is a must-have. But as we’ve demonstrated, you must overcome a couple of ERP implementation challenges before you can reap the benefits. Even though each challenge has a solution, the smartest move is to work with the right technology vendor. At 3Si2, we are all about helping businesses make the most of technology solutions. Whether you want a custom ERP or legacy system modernization, we’ll be glad to deliver quality services. It’s what we’ve done since 2004!
Contact us to learn more.