For businesses in the 21st century, running your processes manually is a time-guzzling, expensive, and human resources-draining task. How do you become more efficient? You implement an ERP system.
ERP systems, or Enterprise Resource Planning software, are a type of program designed to help companies automate and streamline their business processes. Most times, this software will integrate all the management tasks in the company so that they are more efficient, interconnected, require less human effort, and have organized, constantly updating data.
Many organizations that have not yet implemented ERP software in their companies are interested in doing so but are worried about the complexity of the implementation project. After all, introducing software that automates or streamlines your most essential business processes requires a significant change for management and employees, as well as a hefty re-design of those very processes.
You might ask yourself: is ERP simple to implement? In this article, we’ll answer that question by breaking down the expectations and realities of successful implementation.
The Promises of ERP Simplicity
With choosing an ERP software, the typical ERP vendor will make many claims about the simplicity and ease of implementation of their product. Some of these claims include things like, “Our ERP can be rapidly deployed” or “Buying a cloud-based ERP software means implementation is smooth and fast.”
These promises of simple implementation might sound great on the surface, but don’t let marketing campaigns fool you. “Simple” implementation isn’t always simple. Be sure to evaluate the ERP software carefully and thoroughly research the implementation process before proceeding.
As mentioned above, ERP software has many advantages for streamlining and enhancing business processes. Often, even with a highly complex implementation process, the ERP project will provide more value in the long run than the potential hassle of getting it up and running. Having a user interface that allows all management and employees to work together on a single platform to accomplish their various tasks will considerably boost efficiency and minimize the possibility of human error.
The promises of the simplicity of ERP software implementation might sometimes be true, or they might be exaggerated. Whatever the case, many real-life success stories highlight smooth ERP implementations, such as Cadbury, which reduced operating costs and boosted productivity thanks to implementing an ERP system.
The Reality Check: Challenges in ERP Implementation
The reality of ERP implementation is much more complex than the nice-sounding phrases of “rapid deployment.” For instance, when an ERP vendor advertises “implementation included” it is merely an advertising ploy. Why? Because every business has complex and customized processes. A one-size-fits-all implementation plan doesn’t exist.
There are several other challenges in ERP implementation that you need to take into consideration. Ask yourself:
- How will the software handle data migration and integration with your current systems?
- How will you train and respond to employees who might be resistant to change?
- What will you do about budget overruns and time delays during implementation?
The most common mistake you’ll want to avoid during ERP implementation is thinking it will be easy. It’s not. ERP software implementation requires patience and effort, but the results are worth every minute.
Factors Affecting ERP Implementation Complexity
So, what exactly affects the simplicity or complexity of ERP implementation? Simply put, it’s the business. The size and structure of the company affect how easy implementation is, as does the industry it is in. Your choice of ERP system and vendor will play a role in how easy implementation is.
On the human resources side, if you have in-house expertise or choose to hire external consultants to be your ERP implementation team, that’s going to affect the complexity of it as well. An in-house team will have more familiarity with your current systems and processes, while an external team will not. But an external team might have more expertise with and understanding of the ERP software itself.
Last, stakeholder involvement and communication can also affect the complexity of implementation, as they will want to know of and be able to approve any changes in your business processes.
Strategies for Simplifying ERP Implementation
All this sounds complex and daunting, so here are some strategies for simplifying ERP software management and implementation.
Begin with comprehensive planning. Carefully consider all the possibilities and outcomes before jumping in.
Your plan should involve a strategy for selecting the right ERP solution for your business, bearing in mind the unique needs of your business processes. It should also set realistic goals and timelines for implementation and provide materials and training for engaging with employees. Finally, your plan needs to include collaboration with experienced ERP implementation partners.
By creating and adhering to this kind of detailed plan, you can simplify ERP implementation.
Expert Insights: Thoughts of ERP Consultants
Let’s talk a bit more about that last point–collaborating with ERP implementation partners. This is vital. ERP consultants can help you simplify implementation in several major ways:
- They know the ERP software inside.
- They have experience in this work.
- They can offer a plethora of expert advice.
They will also be able to provide you with key guidance if you are still considering ERP adoption and haven’t made the leap yet.
The Post-Implementation Phase: Maintaining Simplicity
No one wants added complexities and issues when it’s all said and done. To keep things running smoothly, you’ll want to ensure the software has ongoing support and system upgrades.
Measure the ROI and evaluate the success of the ERP implementation. This can help you determine where you can continuously optimize ERP usage for better efficiency and productivity, making it all worthwhile.
ERP Implementation – Final Thoughts
So, is ERP software simple to implement? The answer is: it can be if it’s done correctly, but there is no click-of-a-button solution. It all boils down to balancing your expectations with the realities of ERP implementation.
In the end, ERP software takes time and effort to implement and will cause a big change for the company, but the long-term benefits of a successful ERP integration are enormous. With lower costs thanks to more automation, more accurate supply chain management, simpler financial reporting, and smooth procurement processes, ERP software systems can do it all.
Are you ready to take the next step in your ERP implementation journey? Talk to an expert today!
