Your ERP Solution: Is it a Brake or
a Life Preserver?
a Life
Looking at today’s business world and the demanding requirements of customers, which are constantly changing, many ERP systems are implemented incorrectly, sometimes even completely wrong! This can lead to major problems for companies, their customers and their suppliers. What are the most common causes and what can and should you do to prevent your ERP system from slowing you down 🐢?
Three possible Reasons why your ERP System can be a Brake
1. Processes from the old System are carried over
The selection of a new ERP solution requires a lot of time and energy from your team. Often so much of these scarce resources that the entire implementation must be carried out under high time pressure.
Many companies are forced to simply re-automate their outdated business processes, which they copy from their current ERP system. This may be a good alternative in the short term, as it simplifies the implementation process and allows you to stay in your comfort zone. However, in the medium to long term this approach is inefficient and can even lead to your ERP solution becoming a brake that prevents the further growth of your company. The whole thing is particularly problematic if these processes were already adopted from an actually outdated system during the previous implementation!
❌ Adopting processes from the current (outdated) system
✔️ Leaving the comfort zone and modernizing processes
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2. Market Changes are not considered
A second common reason why your ERP system can become a brake is ignoring external changes, of which the coronavirus pandemic is the most important example. Some companies still seem to overlook the lessons learned. They are not taking into account how COVID-19 has affected their markets, the preferences of their employees and the buying behavior of their current and future customers. But how long can they afford to ignore these findings?
❌ Ignoring external changes
✔️ Considering findings from events such as COVID-19
3. Employees remain at the old Level of Knowledge
And there is a third reason why ERP solutions can slow down your progress. You may have implemented the right, modernized processes and adapted them to the effects of the pandemic. But then the question still remains: how well are your users benefiting from the available features and your updated processes?
It is often assumed that user training during implementation will be sufficient for the next five to eight years. But is this a good idea considering that so much changes so quickly?
Imagine your current ERP solution was a car - what gear would you and your team be driving in? And does your ERP car 🚗 drive fast enough to keep up with the competition? Only if your employees are continuously training can you drive in a high gear for a long time. It is a very important factor for your long-term success.
❌ Resting on modernized processes and adjustments
✔️ Continuously training the team
Ensure that your ERP System becomes a Life Preserver - and not a Brake
Take a critical look at how you are implementing your new ERP software in order to always be at the cutting edge of expectations in your markets.
And if you also plan the right budget for continuous training of users, your system will not become a brake, but can even serve as a life preserver in challenging situations and uncertain times. This is because a well-implemented and effectively utilized ERP system can help to strengthen your company’s stability and ability to cope with operational and economic challenges.
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For example, it can provide real-time data to give management and executives an up-to-date insight into the company’s financial position. This is crucial in order to react quickly to changes.
All in all, you can be sure that your ERP system is delivering the benefits you envisioned. 😊