01 Costs
The most common challenge faced by businesses during an ERP selection and implementation is escalating costs. Unclear project scopes, insufficient planning, unrealistic timelines all lead to unplanned expenses. It is critically important to define the project requirements from the beginning to ensure a clear project scope that all stakeholders understand.
- Define a Clear Project Scope
- Break the Project into Phases
- Maintain Regular Communication
- Invest in Training
Once you have selected your software and created a clear project plan with defined scope, it is key to constantly check in on progress. Key to avoiding escalating costs within an ongoing ERP implementation is strong communication with both the vendor and implementation team. They ensure any potential issues or changes in scope are identified early, preventing costly issues and delays later on. Last but not least is adoption through training to avoid delays caused by lack of familiarity with the new system. Often overlooked, this can make or break a project.
02 Risks
The process of selecting the right ERP system for your organisation can be challenging. There are a wide range of available solutions available across software providers and vendors, depending on business goals and industry. Each option comes with its own unique risks. Without a clear framework for ERP selection, further down the road, companies may face complications due to mismatch between system capabilities and business needs and goals. It is crucial to have a structured approach to identify what's right for your organisation.
- Thorough Requirements Analysis
- Multi-Stage Selection Process
- Independent Guidance
- Clear Goals
A robust ERP selection process is backed by a clear process to ensure internal requirements are matched with software capabilities. So that the fundamental building blocks of your business are being placed, as a foundation for current requirements and also future emerging advancements.
03 Chaos
The best planned ERP implementation can founder at the final stages due to lack of adoption, leading to avoidable operational chaos. Without dedicated leadership it is common for an ERP system to lead to confusion and inefficiencies, instead of the hoped for improvements. It is pivotal to have a champion to ensure engagement at this critical time so that the internal team is engaged and understands the fundamental importance of the new software for the company and their roles.
- Clear Company Vision
- Ongoing Support and Training
- Monitor Progress and Address Issues
- Promote Adoption - Find Champions
- Leadership and Sponsourship
A strong project sponsor is crucial to prevent operational chaos through inefficiencies, resistance, underutilisation. Planned out change management is essential to employee adoption of the new software. This is a crucial step that ensures propper utilisation, cross-departmental collaboration, data driven decision making and the long term success of the ERP system.
04 Missed Opportunity
A key benefit of implementing a new ERP system is that internal processes can be improved and optimised. However, this key opportunity is many times missed. Poorly defined processes, lacking stakeholder alignment and resistance to change can all combine to inhibit potential improvements at this critical stage.
Prior to selecting an ERP system, conduct a thorough review of your processes to identify inefficiencies and areas for improvement. To ensure, the new ERP system will be able to address these pain points.
- Map and Analyse Existing Processes
- Align ERP implementation with Process Goals
- Engage Stakeholders Early
- Monitor and Refine Post-Implementation
Another key to avoiding escalating costs is maintaining strong communication with the ERP vendor and implementation team. Regular check-ins ensure that any potential issues or changes in scope are identified early, preventing costly surprises later on. It's also important to invest in proper training and support to avoid delays caused by user errors or lack of familiarity with the new system.
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