5 Tips to Ensure a Proper ERP Software Implementation For Your Business
Why is ERP So Important: ERP Software It integrates all departments and functions across a company in a single computer system that is able to serve all those different department's particular needs. An ERP system also automates business processes by placing them into a useful format that is standardized and common for the whole organization.
Introduction to ERP This post is primarily geared towards the implementation of large on-premises software packages, particularly Enterprise Resource Planning software (ERP), however some principles may apply more broadly to businesses of all sizes as well. Whether you are selecting an introductory accounting package, or purchasing a fully integrated ERP system, be sure to adhere to the following five steps:
1. Prioritize the Implementation • In today’s age, it is possible to automate the majority of your business processes, and doing so can result in significant time and money savings. It is those businesses that rely on antiquated manual systems that are left behind as software is instrumental to a business’ success and should be prioritized. • All too often, decision makers come to the conclusion that new software would greatly aid their business, yet the software search or implementation is often given a lower priority than all other daily tasks, resulting in a stalled process. Each day delayed could be a day when a new system would be in use system that could save time in the future. Ensure full committal to finding and installing a new system to realize the benefits in a timely manner.
2. Do Not Avoid Necessary Expenditure • Everyone wants to save money. Aside from bringing in revenue, it is a decision maker’s job to reduce expenditure, when appropriate. However, it is also important not to sell the process short in trying to save a couple bucks. • Honest software vendors should always overestimate, rather than underestimate, implementation costs. This will reduce surprises down the road. Unfortunately, in practice, this is not always the case. Be sure you are comfortable with the estimation you have been given (less is not always better). Once the software implementation process has begun, it is important to see it through fully. Cost-cutting at this stage can lead to a poorly implemented system falling short its full potential.
3. Ensure All Important Data is Migrated Cost-cutting may also occur in the data migration phase of implementation. This should be avoided in order for the new system to proper report on historical data. In many cases, the old system has a lack of reporting capabilities and a proper ERP system can lend new insight into historical business operations and trends.
A user-friendly system should not take a significant amount of time to become acquainted with but there is always a learning curve and it differs from person to person. Each employee should be given the amount of time required for them to become familiar with the system but training should not stop there. Time should also be put aside for more advanced training at a later date. • For example, 3-6 months after training, it is valuable to have a secondary training session to familiarize employees with more advanced operations within the software. Initially these functions may be overwhelming, but once employees have been using the system for a while they may find significant time-savings using them. 4. Allow for Proper Training
5. Choose and Rely on the Right Team • When you go about purchasing a new software system, an evaluation of the vendor’s team should have taken place. “Did they seem trustworthy? Do they understand my business? Will I receive personalized service?” There is something to be said about going with your gut on the team you are most comfortable with. • When the appropriate software/team combination has been selected, you should feel comfortable in relying on them to make suggestions for business process improvements. • There are often significant benefits from altering business processes for efficiency as well as for the software to accommodate current processes.
Resistance to change may have to be overcome at this stage but chances are the team you have selected is experienced in improving business operations and therefore can be trusted to make recommendations to greatly smooth out operations. Although there are bound to be some hiccups along the way, adhering to these ERP software implementation guidelines should ensure a smooth and effective implementation.
Now that you’re ready to implement an ERP, you need to choose the right ERP for your business..
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