When examining today's business landscape and the ever-evolving desires of customers, it becomes evident that many ERP systems suffer from improper implementation. In some cases, they are entirely misconfigured or severely underutilized. This can lead to substantial challenges for the organizations involved, as well as their customers and suppliers. The real question is: What are the underlying causes of these issues, and, more importantly, what steps can be taken to rectify the situation? In this article, we aim to shed light on three common misconceptions.
Selecting a new ERP solution is a time and resource-intensive process for your team. Often, the demands on time and resources are so significant that the implementation must occur under immense pressure. Consequently, many organizations feel compelled to re-automate their outdated business processes, essentially duplicating them from their existing ERP system. While this may provide a quick fix and keep you within your comfort zone in the short term, it is generally an ineffective approach in the medium to long term. This practice can even transform your ERP solution into a hindrance, impeding the growth of your business, especially if these processes were originally carried over from the outdated system during the previous implementation.
A second critical reason why an ERP system can turn into a liability is the failure to adapt to external changes. The recent pandemic, notably, serves as a prime example. Some companies still appear to overlook the profound impact that COVID-19 has had on their markets, employee preferences, and the purchasing behavior of both current and future customers. How long can you realistically afford to disregard this impact?
Our third observation highlights another way ERP solutions can become impediments. You may have successfully implemented modernized processes and adjusted them to account for the pandemic's effects. However, the question remains: How effectively are your end-users benefiting from the available functionalities and your updated processes? Many organizations mistakenly assume that providing end-user training solely during the initial implementation phase will suffice for the next five to eight years. But is this approach sustainable in a world where change happens rapidly? To draw a metaphor, if your current ERP solution were a car, in which gear are you and your team operating it? Is your ERP vehicle moving quickly enough to stay competitive? Continuous training for your team is a critical factor for long-term success.
Being critical about how you implement your new ERP software is essential to keeping pace with market expectations. Furthermore, allocating sufficient budget for ongoing end-user training ensures that your sophisticated system is utilized as intended.
