Top 5 Challenges of Implementing an ERP Software and Their Solutions
“Don’t limit your challenges; challenge your limitations. Each day we must strive for constant and never-ending improvement.”
– Tony Robbins
An ERP software implementation surely comes with a lot of challenges, even though its benefits are manifold. In the next few years, your business value will reach new heights and touch new shores of expansion, with a successful and best fit ERP software integration. With a prior knowledge of the challenges and bottlenecks, you can be better prepared to counter any such obstacles with ease.
- Incorrect Requirement Analysis: ERP implementations in most cases fail because of inaccurate requirement analysis. One needs to know the difference when an ERP application is integrated with an e-commerce site and a POS software. You need to know whether the ERP app needs to be integrated with CRM as well. However, in most companies requirement analysis is done by employees with limited knowledge of ERP implementation. Primary emphasis is laid upon the cost and faster execution. But unfortunately, the project fails in most cases as the requirement is not completely understood in the chaos of bargaining with the costs with the vendor. To have more clarity on ERP implementation, case to case differences, actual time and money to be invested, involving people with good knowledge on ERP is a must. They would advise you in better decision making, and thereby drive better results. Make sure the requirement analysis checklist is reviewed by a technical team, before finalizing the deal.
- Inadequate Training: Following closely on the lines of the previous challenge discussed, lack of knowledge continues to be a hurdle for a successful ERP implementation. When your company is preparing for a major data transfer from the legacy system to a new ERP reality, it is necessary to have a basic understanding of the changes that are taking place, the new interface, and risks or losses involved in the process. You may arrange for a brief knowledge transfer session for all employees or anybody who would be part of the new system, before the actual change takes place. Not an elaborate training program followed by a test, but a simple 45-minute session by the knowledgeable resources, for all to attend. Training videos of the same may also be circulated. Expand ERP offers complete training of users post implementation within 50 hours by trained technicians and constant support even after implementation.
- Inefficient Project Management: Larry Ellison, the founder of Oracle Corporation once said that taking care of one’s customers is important, but taking care of one’s employees is more important. This implies that you should have the right resources in your team for customer success. We need to understand their worth and utilize their full knowledge and potential for an efficient project management. Trust them, mentor them, train them and let them come up with a full-proof project management plan that will not only ensure a successful ERP implementation but also derive desired ROI for your business. Only with a meticulous project management, one can achieve that, no amount of cost-cutting or package deals help.
- Customization: ERP software is often misunderstood as a wholesale package solution for a company. But unfortunately, it is not. ERP applications are actually a framework with which a customized solution is built. This means, your requirements have to be defined well in advance and accordingly a customized ERP solution will be created. For that, you need to define the workflows and do a capability analysis, beforehand. You might have to make a few minor adjustments in the application solution to meet all your enterprise needs. These adjustments or modifications differ from suite to suite and might be required at the beginning or sometime in the middle of implementation. If you are prepared for a capacity planning, delays in implementation and time loss because of system outage may be kept at bay. It is advisable to invest in a best fit ERP software that suits all the unique needs of your business. A ‘one size fits all’ ERP system is most likely to fail.
- Rising Operational Expenses: Overhead cost is one of the biggest challenges of ERP implementation. The initial cost of implementation is high, but the customization and maintenance costs are even higher. The more customization needs are, the higher are operation costs. Maintenance costs are of course, a necessary evil, which cannot be brushed aside. However, with an efficient requirement analysis and resource planning, much of this cost may be brought under control. Sit with the best quality professionals in the organization to find out what you really need for enhancing your business value. Seek for features that will add value to your product or service, attract more business, and position you better as an entrepreneur. That way, you will get the true value for your best fit ERP solution without spending a huge amount. Expand ERP cloud software involves zero upfront costs. Only a concurrent user price is payable as per your usage. Investing in Expand ERP cloud software is a value for money solution that derives fast ROI.
These are certain generic challenges while implementing an ERP software. Depending on the sector in which the company operates in, the extent of complications may vary. This will ensure the implementation process is smooth without any glitches.
Team Expand ensures you a hassle free cloud ERP software integration experience with utmost ease.
Expand ERP is India’s best-fit cloud ERP system for fast growing businesses like yours. It empowers the mid-sized manufacturers in the export and retail industry with real-time visibility and complete control over their business for faster expansion by simplifying complex business processes.
With over 15 years of extensive R&D and market testing, we have developed a software that seamlessly fits into Indian Business. We are the OEM of this solution. Further, specific fitment through customization and integration are made for the company’s unique needs. All measures are taken to fit seamlessly into the existing business processes to deliver the maximum benefit of our solution.