How should companies move when they adopt new ERP systems?

Options for adopting a sleek, modern ERP system are growing quickly. This is good news for companies looking to streamline operations. However, while finding the right option is a little easier, it still takes a little bit of work to implement these new systems properly.

The wisest strategy companies can follow when adopting new ERP systems – either for the first time or when upgrading legacy platforms – is to follow industry-recommended best practices. While each business, regardless of industry, may be looking for unique performance from the ERP systems in which they invest, there are a few simple rules of thumb to follow that help ensure the transition goes as smoothly as possible for all involved, from the shop floor to the executive suite, and can start delivering a return on that investment.

What can be done?
According to Information Management, one of the most important aspects of successful ERP implementation is proper training. Workers using a new ERP system on a daily basis should know it best, and ramping up education and training can go a long way toward ensuring a successful transition. Beyond simply knowing how to use it, executives also tell their employees exactly what the business hopes to accomplish with the new platform. How will the company benefit from enterprise resource planning systems, as they are continuously utilized in the future? These answers can help ensure maximum buy-in.

That effort should help boost the ROI ERP systems provide both initially and in the long-term. It is important to track ROI to see if there are any inefficiencies lingering in the system that can be addressed quickly and easily.

More ways to increase ROI
Furthermore, some experts recommend that businesses moving to new ERP systems do so via the cloud for extra control and reduced costs. In an interview with Eric Kimberling from Panorama Consulting, Diginomica reported that by relying on cloud ERP, companies with space-related concerns can free up square footage around the office or production floor. Since companies won't need sizable servers on-site as many legacy ERP adopters have done in the past, extra space can then be used for other pressing needs.

However, the cloud also creates some potential hurdles in terms of security issues that must also be addressed initially and readdressed continuously thereafter, according to CIO. These issues include everything from cyber threats like hacking and accidental breaches to regulatory requirements. When businesses incorporate sensitive customer and client information or credit card data into their collection efforts, most states have rules regarding how data has to be protected and what companies have to do in the event that information is exposed.

There are many aspects of adoption that companies must consider before they make their final ERP decisions. As such, the more homework companies can do regarding what they need from ERP, the better. That includes the specific inefficiencies they're trying to address by adopting these systems and which options work best to meet those goals while staying within a budget. With those things in mind, businesses are more likely to benefit from the switch.

By |January 31st, 2017|ERP Solutions|1 Comment