What common issues do companies face with ERP implementation?
Using an ERP system is a major decision for any company, but many issues still arise. Some of the common issues include the following:
- Data migration issues: When companies switch to an ERP system, they have to transfer data from the old system to the new one, and this process can cause errors, missing data, or inconsistencies. As this data migration is significant to ensure that the ERP system works efficiently, companies should try working with experienced ERP consulting services to avoid any issues.
- Employee resistance: It is human nature to resist change. As employees are also human, re-learning a new system would be overwhelming. If the company does not invest in good training, employees may face difficulties in using the new ERP effectively.
- Integration problems: Getting the ERP system to work seamlessly together with the existing software solutions and making sure everything works well together is not as easy as you’d think. These issues can cause unexpected errors and delays in day-to-day business.
- Customization challenges: Although customized designs work better for companies, you should consider the fact that customization is expensive and can create more issues when getting the ERP system to fit your business processes. If it is not planned properly, your implementation project can lead to delays and additional costs due to the demand for creative technology solutions.
- Security concerns: Another concern is security, especially for cloud-based ERP solutions. Although presumably safe, there’s always a risk attached to using cloud-based systems. It is particularly important for companies to ensure that they are safe from cyber threats and unauthorized access.
What factors should be considered when choosing an ERP consulting company?
An ERP consulting company can help you with the successful implementation of an ERP system in your company. However, it is critical that you find the right ERP vendor that aligns with your business needs. The following are some important factors to consider:
- Industry experience: Experience speaks louder than certifications in this line of work. Make sure that you look for a company with years of experience in your industry and understand it enough to provide sound advice for the best ERP selection and software solutions.
- ERP software expertise: You should check if they specialize in the ERP software you want to use, whether it's SAP, Oracle, Microsoft Dynamics, NetSuite, or any other software selection. They should have a track record of experience in using various software.
- Customer support and professional services: It is important that your consultant is willing to provide continuous support services because, in the long run, you will need assistance with troubleshooting, upgrades, and user training.
- Transparent pricing: You should pay close attention to how they manage pricing, as some firms may have hidden costs that can add up.
- Change management approach: Your consultant should help train your employees so that they have no difficulty with the transition to new enterprise software.
How do I know if an ERP consulting company has expertise in my desired technology or platform?
Determining the actual skill set and experience of an ERP consulting firm is a difficult task. You cannot always trust what they say they can do. Here are some ways to evaluate whether their ERP services are the right fit for you:
- Review past work and case studies: It is wise to ask for a specific case study to see how they handle other clients in your industry and ask for a reference who can share their experience working with the firm.
- Check certifications: You should ask to verify the accreditation of the ERP software vendor you’re considering. Top ERP firms would have all the necessary certifications to prove their skills.
- Ask about their implementation process: It is important for a skilled consultant to know in-depth about their methodology and how their implementation services take place in setting up the ERP system in accordance with your business requirements.
- Evaluate team experience: Setting up the ERP system requires the effort of the whole team. It is a common occurrence that consulting firms rely on a few crucial team members while the rest of the team does not have the necessary experience. You should choose a team where all members have technical qualifications in project management, automation, and supply chain optimization.
- Request a demonstration: A demonstration is an excellent way to learn about a firm’s efficiency and skillset. If you can see their skills in action and understand how they would approach your specific business systems, you will be more equipped to make decisions.
What should I include in my project brief before contacting an ERP consulting company?
You usually have to prepare a project brief to help ERP consulting firms, acting as your trusted advisor, understand your requirements and suggest ERP solutions that are suitable for your business goals. It is important to provide clear and detailed information to speed up the selection process and improve project outcomes. Here’s what to include:
- Business description and challenges: You should start with a clear description of your business, the sector, and the issues you want to solve. This helps the firm understand how your business processes work and which ERP project would suit your requirements.
- Project goals: It is also good to provide the goals of your project. Start by answering the following questions: What do you want to achieve with the ERP system? Are you looking to improve efficiency and profitability, business transformation, reduce costs, automate workflows, or streamline supply chain management?
- Required features and integrations: List the key features you need. For example, do you need inventory management, accounting integration, customer relationship management (CRM), e-commerce functionality, or enterprise resource planning capabilities?
- Budget and timeline: It is good to communicate your budget and timeline early. This way, the consulting partner will be more equipped to provide realistic solutions on time and refrain from unexpected added costs later.
- Existing IT infrastructure: Your consulting partner will also need to know the details about your existing IT setup, especially if you use specific software solutions or have legacy systems.