Avoid These 3 ERP Mistakes

ERP stands for enterprise resource planning, which is the process whereby a company manages data and resources via an integrated computer system. ERP system solutions strengthen businesses by streamlining business processes through automation and integration.

With the right enterprise resource planning system, you will be able to track data across a range of areas, including finance and inventory. You and your team will be able to use accurate and up-to-date information to make smart business choices. To get more from an ERP system solution, avoid these three common mistakes.

Excluding Users From Decision-making

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Image Source: Flickr by TLC Jonhson.

You’re the boss, but you’re not the only one who’s going to be using an ERP system. Since the whole team will need to use the system, users should never be excluded from ERP-related decision-making processes. To implement an ERP system solution plan properly, you’ll need to understand your business and its processes inside and out. Your team members can help by sharing insights and suggestions.

Keep everyone in the loop as you move towards efficient and successful ERP implementation. It’ll help with the process and also ensure that your team is strong and cohesive when changes are rolled out.

Another benefit of reaching out to your staff is that team members may be able to assist you with identifying weaknesses in your pre-ERP systems. It doesn’t make much sense to embrace the automation of a flawed system, so take any feedback from your staff and think about ways to improve existing business processes before the ERP implementation begins. ERP implementation will then be a fresh start that improves top-notch processes, rather than speeding up the pace of problematic processes.

Failing to Get References

An ERP solution vendor should be more than happy to provide a few references. Don’t hesitate to ask for these references. This is a step that some entrepreneurs skip, but it’s an important step.

When you talk to the vendor’s other customers, be sure to ask the right questions. Find out what made their customers happy, what bothered them, and whether they would do it all over again. Vendors who aren’t able to come up with a few references or more may not have a proven track record.

Also, if you know other business owners who use ERP systems, reach out for advice. How did those other business owners choose system solutions? Gather all of the information that you can before making a final decision. The homework and research that you do before buying will pay off.

Insufficient Budget for IT 

Implementation requires IT resources. ERP system solutions are renowned for reducing IT costs in the long run, but you will need to allocate sufficient funds for IT during the implementation process. If you don’t, IT work may not get completed in a timely fashion.

Be realistic about the time and resources that will be required and budget for IT accordingly. When you have enough time and resources, the implementation process will have a greater chance of unfolding in a smooth and seamless fashion.

Now is the right time to speed up the pace of business with an ERP system. When you avoid the usual errors ERP newcomers make, you’ll be able to proceed with confidence, knowing that you’re doing what’s best for your company.