New ERP software offers new possibilities and opportunities. But it also brings major risks. I have listed the 7 biggest risks in the eyes of business owners when transitioning to new ERP software. Useful to know, because if you know the risks then you'll know better what to do to reduce the chances of an unsuccessful ERP implementation.
1) Are my expectations realistic?
It's not always clear what new ERP software will bring. Not even after seeing an extensive demo of the software. Therefore, it is important to make clear agreements with the software vendor and properly define and delineate the project. Internally, it is also important to set the right expectations and keep employees well informed.
2) Isn't this step too big?
The transition to new ERP software has a major impact on the organization. Existing practices and business processes are changed, and this affects all facets of the organization. But it is important to keep the ultimate goal in mind: improvement! So the step that is taken is a step forward.
3) Do my people feel involved enough?
Chances are that employees are not behind the choice of the new ERP software. By showing them the added value of the new system and continuously informing and involving them in the selection process and implementation, people will be more involved and you will increase the chances that the implementation will be successful.
4) Will the project succeed within the time and budget set?
Perhaps every business owner's biggest fear during an ERP implementation; there is no end to the project and the costs skyrocket. The solution: work with the software vendor to establish a clear, step-by-step, precisely defined project plan with clear goals and completion dates.
5) Is the new ERP software flexible enough?
A new system causes people to fear that they will be put in a straitjacket and no longer have the freedom and opportunities they had before. But this fear is often unfounded. If you choose industry-specific ERP software developed for your type of business, then your processes will fit into it. And if this is not the case; discuss your requirements with the vendor and devise a suitable solution together.
6) How do we utilize all the capabilities of the software?
On average, only 54% of an ERP system's capabilities are utilized by users. The more product features and complexity, the more likely functionality will be left unused. Therefore, choose a user-friendly and simple solution above all: quick and easy to learn and only pay for what you use.
7) Is this project delivering what I need?
The choice of new ERP software often comes from the experience that something needs to change. Cost reduction, better insight or being able to work faster. Define the main pain points for your organization and focus with the software vendor on these key issues. Are you going to make improvements here? Then the investment will pay off.
Remko Gaastra is President of Dysel USA and responsible for Marketing. He discusses daily the risks that (potential) customers experience with ERP software and how to deal with them.
