Top 5 Blunders To Avoid When Choosing ERP Software
Published in Features on Thursday April 19th, 2012. Last updated at 08:00
When it is done right, ERP software can be very good for an organisation. However, if you get the implementation process wrong, choose the wrong software or fail to keep on top of your system once it has been implemented, you could end up doing your company more harm than good.
In order to help you keep on the right track when you are dealing with your ERP solutions, here are our top five ERP software mistakes you should really try to avoid.
Spending too much
Okay, so it almost goes without saying that if you want to get a good ERP system, you are going to have to spend some money. That’s a given, but there is no need to spend more than you have to. One of the biggest mistakes that some companies make is to improperly implement their ERP system.
This can lead to inflated costs in future, either because you have to pay to get the system implemented again properly, or because an improperly integrated system can lead to inefficiencies such as overrunning projects. Therefore, even though it might take a bit of time and money in the first instance to get your ERP system in place, it is definitely worth doing this to avoid unnecessary expenditure further down the line.
Going too fast
Another big mistake that quite a lot of businesses make is thinking that choosing and installing ERP solutions will be a relatively quick process. Unfortunately, this is generally not the case and installing ERP software is not like installing a new copy of Microsoft Office.
Before you even choose which ERP system to purchase, you will need to undertake a review of your business so you can determine what you want the system to achieve and adapt your search appropriately. You also need to plan how you are going to implement it and when so that the process will be as efficient as possible. Then, when it comes to the implementation itself, you need to ensure the software is properly integrated so that it works well. This takes time, but it’s worth it.
Using the wrong staff
Your employees will play an important part in the success of your ERP solutions so choosing the right people to train really does matter. Make sure you are careful when you are identifying the employees who will need to use the ERP software and don’t neglect your training programme.
It can take time to really get to grips with the complexities of an integrated ERP system, so your training shouldn’t stop just because your staff has got a basic understanding of how it works. It might cost you a bit more in training fees in the short term, but in the long term, making the effort to really understand your software and what it can do for your company will help your employees and your ERP system to achieve their full potential.
Choosing the wrong vendor
As you have probably already guessed, it isn’t just your employees who can have an impact on the success of your ERP system. The supplier you choose matters just as much, as they are responsible for providing you with a product.
It is important to choose an ERP software supplier that is reputable and respected for what they do. You also need to feel comfortable with them and be confident that they will give you a good service, so don’t just go with the team that gives you the cheapest price. Look for a provider that makes the effort to get to know your business and your requirements for your ERP solutions.
Find out about the kind of support they offer and whether they are able to offer bespoke solutions to ensure you get the best possible service.
Neglecting vital data
When you are implementing your new ERP system, you are likely to need to transfer data over from old sources to new ones. A mistake that many companies make is to neglect large amounts of their old data and fail to transfer it over to the new system.
Of course, not all of your old data will be useful or even needed at all on your new system, but until it is up and running, it will be hard to tell exactly what can go. In the meantime, it makes sense to transfer over all of your data to the new system; even data that previously didn’t seem useful might become useful once it is in the new system with new tools at your disposal and integrated solutions to utilise.
