A Few Common Problems to Avoid in ERP Implementations

ERP Implementations: Learn How to Avoid 2 Common Problems

Implementing an enterprise resource planning (ERP) software system is often the first step for companies that want to improve their operations in many different dimensions. There are general benefits for users such as the reduction of costs and more insight into operations on the micro and macro levels. Organizations can also realize advantages related to their industries and markets with a variety of different modules and add-ons that provide enhanced functionality in specific areas. It's no stretch to say that ERP software, when used effectively, is a difference-maker for all sorts of businesses.

Of course, the system has to be selected, implemented, used and updated with a great deal of consideration and care. A poor implementation, a lack of employee buy-in and even the selection of the wrong software or additional modules are all detrimental to the usefulness of ERP platforms and their subsequent success. Because ERP systems often involve a significant financial commitment, the potential problems involved extend past operational and effectiveness concerns to include the damage done to the company coffers.

Here are two of the common problems encountered with ERP software as well as proactive solutions to those issues:

The wrong system is selected

Choosing the wrong ERP platform is a growing problem because of the many different options currently on the market as well as the new types of software being developed for the future. This fragmentation of the market is by no means a negative - the more options that a business has, the more likely that it can find a great or even near-perfect fit. The problem arises when organizations don't have the required guidance and select, pay for, implement and use such software. This problem also extends to ERP modules. Selecting the wrong ones will incur a sunk cost and provide little benefit to a business.

Luckily for organizations looking to implement ERP systems, the solution to this potential problem is an easy one. Companies need to do their due diligence, researching different solutions and determining which seem to be the best fits. Developing this knowledge is one of the most important early steps in the selection phase. Additionally, going through the process with a high-quality ERP partner will make all aspects of the process easier. The knowledge and experience of a partner will provide adept guidance to businesses, whether they're adding ERP for the first time or upgrading from a long-used legacy platform.

Employees don't understand how to use a system

Effective training in the work environment is crucial to all aspects of operation and a new ERP system is no different. Staff members, from those who will occasionally interact with a system to those who will use it regularly on a daily basis, must all grasp the ins and outs of a new platform. A lack of effective, comprehensive training means that even the best software won't have its potential realized. Training has to be a short- and long-term consideration, to educate all current employees and then to also teach new hires as they are on boarded.

To ensure that training is effective, the employees leading an implementation have to work with other staff to ensure both understanding and compliance. Offering various resources, such as classroom-style education, online textual materials and one-on-one instruction, helps to get the message across to many different types of learners. Additionally, an ERP partner can help organizations develop a strong training program that highlights specific components of ERP software by drawing on past experiences and utilizing their strong organizational knowledge of specific platforms.

The TM Group
Since 1984, The TM Group has been enabling organizations and their people with CRM and ERP solutions. We will work with your management team and the end users to be sure you get the best return on your investment. Call the TM Group today - 888.482.2864.