ERP Can Improve Efficiency If You Avoid These Pitfalls
How to identify and avoid the potential stumbling blocks on the way to a successful ERP integration. Improve efficiency & ROI with Enterprise Resource Planning.
ERP utilizes a central database for business processes to reduce manual labor and simplify workflow. Using this central database and integrating various aspects of the business, such as planning, purchasing, marketing, sales, finance, and HR, enterprise resource planning software can dramatically improve efficiency.
However, some hurdles must be overcome when deploying ERP. It’s not enough to just launch it. It means rethinking the way data is organized, and business is done. If your employees don’t embrace the implementation process or evolve from old systems or software, it can be a difficult transition.
The Potential Pitfalls of Implementing ERP
Getting employees to embrace the process is one of the first steps towards a successful ERP integration. To make it happen, there needs to be buy-in from the top levels of the organization. It will take strong leadership and commitment from the top.
Here are some of the other potential pitfalls in implementing ERP along with advice on how to avoid them:
PITFALL: If the project is seen as an IT initiative, or only of interest to one department or area, it can be difficult to get cooperation.
SOLUTION: As ERP crosses functions and departments within the company, it should be framed as a total business conversion to improve efficiency.
PITFALL: Some ERP integrations struggle because there is nobody in charge. It’s a big (and important) project, but it’s challenging to manage on a part-time basis.
SOLUTION: The project needs a leader that can devote the time necessary to make things run smoothly. That’s one reason so many organizations get outside help from IT pros that can devote the time and resources to get the job done without extra burdens on the existing IT staff.
PITFALL: Another mistake some companies make is putting the IT department totally in charge of decision-making.
SOLUTION: Your IT team needs to be intimately involved because of the hardware, software, and communication integrations, but ERP is cross-department and cross-functional. Every department that is impacted should participate in decision making.
Another important place where organizations trip up is in training. Once systems are in place, team members need to be trained and coached on best practices and held accountable for using the systems. Without preparation and accounting, they can easily default to the way they used to do things and mitigate the benefits of ERP.
The Benefits of ERP Implementation
With the right planning and approach, enterprise resource planning systems can provide significant benefits.
Productivity and Efficiency
The biggest benefit companies cite when deploying ERP is an increase in overall productivity and efficiency. Since ERP helps eliminate repetitive and manual tasks, it can lead to operational savings. Team members can better manage their time and focus on the most critical aspects of their job – improving efficiency and ROI.
Uniform Data Flow
ERP provides a uniform flow of data across all departments. This real-time information can be a definite competitive advantage. Giving team members access to data from across the organization can help them see the big picture and better understand how their role fits into the equation.
Eliminating Information Silos
Companies without ERP often find information is in silos. Sales, accounting, production, distribution, delivery, and customer service may all have their processes. With ERP, all the information is in one dashboard, so when changes occur in the production pipeline that impact delivery or finance, for example, everyone has the information to make the necessary adjustments.
ERP software makes reporting much easier. Complex data reports can be created without having to involve IT specialists. Quoting will be faster and more accurate. It also reduces the amount of time wasted, trying to find data to make the right decisions.
Mobility and Security
Cloud-based ERP systems can help with mobility and security. In an increasingly mobile world, your team members can have access to essential business data in real-time, whether they are sitting at their desks, working from home, or at remote locations. At the same time, ERP software has robust access control to protect sensitive data. Permission-based security allows access only to those you choose.
Work with An Experience Integrator and IT Experts
Enterprise resource planning software can provide significant benefits to your organization. Implementing ERP and integrating legacy systems can be complex. For the best results, you need to work with IT experts and experienced integrators.
EPC IT Solutions is the Bay area’s most reliable IT service company. EPC is a full-service IT solutions provider made up of highly skilled pros that are passionate about making technology work for business. Our principles are in our name: EPC (Excellence, Professionalism, Commitment).
Contact EPC and let us show you how we can help your business grow with IT solutions.