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Extensive planning is key to successful ERP implementation

News & Blog

Technology is in a state of constant flux, making it important for companies not to spend vast amounts of money on systems and programs that may quickly become out-of-date. A recent study by the Panorama Consulting Group revealed that 63 percent of companies had difficulty when implementing new software.

That problem has extended to organizations that use enterprise resource planning (ERP) systems. More than 40 percent of survey respondents said their companies changed business processes to accommodate ERP systems. However, a recent IFS survey found that while many manufacturing firms have purchased software licenses for approximately seven applications, the average company uses less than half of that.

Prevent ERP issues

Despite these problems, many businesses are moving to implement ERP systems to take advantage of their vast benefits with regard to handling day-to-day operations. As a recent Forbes report pointed out, ERP software can integrate of business-related functions, from sales and inventory data to customer relationship management. ERP can help organizations save a substantial amount of money by increasing productivity, better management of inventory and improved customer relations.

ERP Implementation Strategy

In addition to prior planning, there are a number of strategies companies can employ to make sure they are getting the most from their ERP systems:

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  • Educating employees about ERP software is key. Too often people are left alone to figure out how to use the new technology, which makes them far more likely to reject it.
  • The Forbes article advised organizations to hire a third-party company to assist with ERP implementation. Not only will these companies understand how to use the technology, but as an outside source, they will be more likely to point out its weaknesses.
  • The Forbes report also suggested that executives and IT leaders develop a plan in case the company runs into any problems to mitigate any potential risks.

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