By: Serge Janssen Daalen, 22 May 2023
ERP is the acronym for Enterprise Resource Planning and enables you as a company to adopt Agile working practices. Choosing and implementing ERP software is a challenging task for most companies. While many ERP providers often emphasise only the benefits of their software solutions, they usually do not mention the potential risks associated with this process.
We would like to pinpoint five risks that ERP providers don’t discuss with their potential customers. Be well aware of the pitfalls and avoid a nightmare for your business.
Risk 1: Lack of preparation
Lack of thorough preparation can result in issues during the implementation process. Before choosing an ERP solution and provider, it is essential that you have a clear understanding and perspective of the operational processes and systems, and the goals and requirements for your company. Avoid surprises afterwards. Consider the transfer of data (migration), training and the moment of switching from the existing system to the new ERP system.
Risk 2: Inadequate training and support
Any ERP-system is only as good as its users. Inadequate training and support can result in the lack of adoption and inefficient use of the software. Make sure the provider delivers sufficient training and ongoing support, allowing you and your staff to get the most out of your ERP investment.
Risk 3: Mismatch between software and operational needs
If you choose an ERP solution that does not fully align with your company’s specific needs, it can cause suboptimal processes and frustration among your employees. Perform a thorough analysis of all operational processes and compare them with the functionalities provided by the ERP software on offer. Do they match with your wishes and requirements? This way, the right match will surface.
Risk 4: Budget surplus
ERP implementations can be complex and expensive. It is important to set realistic budgets and allow for any additional costs, such as customisation, training and integration with existing systems. With a clear and realistic assessment of the overall costs, unpleasant surprises can be avoided. I wrote about another article about how to prevent Budget Surplus with the implementation of ERP-systems.
Risk 5: A lack of flexibility and scalability
Businesses are constantly evolving, so it is important that your ERP system can grow along with the changing needs of your company. Most ERP solutions on the market are not very flexible, and customisation is usually not possible, whatever you are told. The story that their system will be tailor made for you, will require critical review and questioning. In any case, it makes more sense to move from A to B in 4 or 5 steps, rather than in 1 big step. Choose an ERP provider that offers scalable and flexible solutions, ensuring that nothing stands in your way of future growth and change.
Conclusion
Purchasing and implementing ERP software is an important strategic decision for any business. A proper system will ensure that your company can continue to grow, but the opposite is also possible, the wrong choice will pull your company down, with potentially disastrous consequences. Several thousand companies have gone bankrupt after a failed ERP implementation.
Be aware of these risks, that ERP providers may not (want to) share with you. Take the necessary precautions, which will allow you to avoid such issues. Be thoroughly prepared and choose a solution that matches your operational processes and systems. Choose an appropriate solution.
Invest in training and support. Keep track of, and control over, the budget. And opt for flexibility and scalability. This way, you can avoid the nightmare of a failed ERP implementation and benefit from effective and efficient Agile business operations.
Spiresolutions offers unique, flexible, scalable and customised ERP systems. With an implementation process that takes all the aforementioned risks into account, as a standard part of all our operations and services.
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