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Sep 27,2018 16:20:20PM
Most Common Risks In ERP Selection And How To Avoid Them
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Thinking about getting a software solution for your enterprise about 20 years ago might not have been so much easy. ERP or Enterprise Resource Planning has proved to be an extensive software solution for several of a company’s needs. Today several ERP Software Solution and cloud-based services providers are in the market that you don’t even need to look up for. Service providers are not limited to one but many types of different solutions and they offer them to you.

But sometimes this brilliant array of different services may be too much for the executives who are selecting the suitable ERP package for their company. A lot of options and features in front of the team may prove to be overwhelming and in a way make the whole process a bit difficult, trying to determine which features and functions are applicable or necessary and which are not. This can often lead to mistakes and further problems may occur.

In this blog, we are focusing on this aspect of the ERP selection process, the common problems that may occur in this process and how to avoid such problems.

How Should ERP Software Solution Be Selected?

There are a lot of mistakes that can occur in the ERP selection process. Some of the common mistakes that companies usually do in this process are given below.

Gathering Incomplete System Requirements

The most important part of this process is gathering the requirements of the company. ERP Software Solution helps to automate and combine several business processes. While implementing a new ERP system, automating the current processes and components may seem like an easy and tempting solution but is not always the correct one. When ERP is being implemented in an organization, this is the best time to review and improve your current business processes, prune any unwanted and outdated components and introduce newer ones or update them. Thus understanding the requirements and gathering them becomes not only an essential step but a necessary part of the process.

Automating an inefficient and outdated business model will only prove to be problematic in the future. Moreover, you may also need to redesign your business processes in the future which means applying those changes in the ERP system and implementing them there. So it’s better to first identify and resolve issues in your business and then only implement an ERP solution for it.

Enforcing the Whole System in One Go

ERP, how much easy they can make a conventional system, are very much complex in themselves. Sometimes it is difficult to understand the usability and working of such systems. At this point, the biggest mistake a company could do is to implement the whole system at once. The conventional waterfall model doesn’t work here instead; an agile approach is best suited. All the implementation requirements should first be gathered, implement the system at different levels, train the users teaching the use and functioning of each component and only after then should go live. In this approach, if at any step some shortcomings or problems arise, they could easily be corrected and the complete business could be saved from a lot of trouble.

Improperly Budgeting for the Technical Staff

For implementing such a huge change such as ERP in a business, a lot of work must be done both before and after the complete process. A major point in the preparation of such a point is the budget. Now in almost all businesses, a budget is prepared for it. But many of the leaders, who are responsible for drafting the budget, skip the budget of technical staff or not give enough weight to it. In this way, by underestimating the necessary expenses, they fall short on including the required technical talent to realize the project and to keep up proper maintenance. Achieving more with less is not always successful; sometimes you have to spend more to save more in the future.

Getting Fascinated By a Lot Of Features

The features of a product most of the time are repetitive and even stepping out of the realm of usability with unnecessary functionality. Several ERP service providers show an unending list of features attached to their product and most of the time, the executives selecting the ERP system for their business, fall for these features. Features are great but are not everything. The past performance of the product and the company selling it should also be considered. It should also be seen that how well that company can integrate the product with your current business needs as well as the strength of customer support that follows it.

Lack of a Proper Maintenance Plan

ERP implementation is not an overnight thing. It takes time to do such a huge deployment. ERP can automate and simplify a lot of processes. But even when it gets implemented completely, the work doesn’t stop here. Maintenance is needed forever and ignoring it is just the act of a fool. The employees using the system should be properly trained and a maintenance plan should be drawn so that the system or a part of the system doesn’t get obsolete or outdated. Regular checks and continuous evaluation is the key to evolution. This will not only keep the functioning of the system smooth but also the performance graph always in the upward direction, at least for the ERP system.

Several ERP service providers are there in the market. NYGCI is a known and trusted name in the list. When you are making such a substantial change in your organization, you should always go with a name you can trust. NYGCI is that name and besides ERP, provides a range of IT professional services.