Businesses invest in ERP systems for a number of reasons – ERP systems increase business intelligence, reduce costs, and streamline processes. Although the benefits are promising, however, studies show that over 60% of ERP implementations fail to live up to their users’ expectations.
The developers of Sage ERP X3 have several pieces of advice for businesses that want to implement an ERP system.
The most critical component of ERP implementation is selecting the right ERP system and partner. Because of the effect that an ERP implementation can have on your company's strategy – as well as the effect the company’s strategy has on the ERP implementation – it is important to thoroughly understand your options when it comes to selecting an ERP system.
Focus on process improvements. What good is having a new ERP system if it doesn’t improve what you’re already doing and how you’re doing it? Tailoring the functionality of the ERP system is critical to its success in a business.
Employing a top-down approach to organizational commitment is another vital step to successfully implementing ERP software. Knowing your company’s organizational structure and its cohesiveness will help your company get the most out of the system. Your users may be committed to the idea of an ERP system, but are your managers?
While implementing an ERP system, it is important not to lose sight of your team's project management skills. You've chosen to invest in an ERP system to enhance the work of an already excellent team. Make sure your implementation process does not distract or detract from the processes that made your company a success in the first place.
Practicing accurate data entry is another way to ensure a successful ERP implementation. Because the ERP system is fully integrated, accurate data is essential to its proper function. Make sure your company's business data is organized and accurate before the implementation process begins
The developers of Sage ERP X3 also urge you to invest in change management as a way to overcome user resistance to a new ERP system. A thoroughly designed change management strategy takes into account the company's culture and promotes success by having all employees on board for the ERP implementation.
Appropriate education and training is another important part of a successful ERP implementation. Your staff's education should be an ongoing process that keeps employees up to speed on the functionality of the ERP system.
Lastly, the developers of Sage ERP X3 urge companies to focus on the return on investment (ROI) rather than the expenses when implementing an ERP system. It is an expensive change for a company, regardless of how thorough and positive the implementation process is. Trying to cut costs without thinking about ROI will results in a loss.
ERP systems can make your business more streamlined, more agile, more productive – and more profitable. It can cut costs and raise revenue and make your business easier to run. These best practices from Sage ERP X3 are designed to help you avoid common blunders in the process as well as to get the most out of the product.
Oates & Company has a wealth of experience in matching ERP systems to companies; please contact us about assessing your company's needs.
