Enterprise resource planning (ERP) systems are the bedrock of business process management—from sales to operations—and everything in between. The versatility of functions helps to increase efficiency, secure data, promote collaboration, adhere to industry regulations, and more. The inherent potential of an ERP will convert your business into a successful powerhouse if implemented correctly. If used poorly, however, your business will suffer. As CEO and founder, Sam Oshay says, “Organizations with broken systems usually suffer from broken business processes and vice-versa.” If your ERP isn’t performing optimally, your business will follow (suboptimal) suit.
To safeguard your business from a system breakdown with devastating consequences, we’ve mapped out the most common issues ERP users face and how to address them.
Top 10 Reasons Why Your ERP Isn’t Working:
1. It’s Running on Old Software
Your ERP is the keeper of all data. Maintaining your ERP up to date is crucial to keep it running quickly and efficiently. Updates and upgrades are often put off due to their costly or timely nature. Avoiding necessary updates will eventually take its toll on your ERP and the accumulation of bypassed updates could have disastrous effects on its functionality. To avoid lost productivity from your team or a complete system meltdown, it’s best to incorporate regular updates into your ERP maintenance plan. Smaller, frequent updates will ensure your system is always running the latest version.
2. You’re Not Using the Right ERP
ERP systems are not all the same. Determining the goals and objectives of your company will help determine which ERP system is right for your business. Different systems are suitable for specific industries such as retail, manufacturing, and distribution. Choosing the right one will increase efficiency, lower overhead costs, automate workflows, improve departmental collaboration, and much more. If your ERP causes more problems than it solves, it’s possible you’ve implemented an ERP better outfitted for another industry or business. To read the full guide about how to choose the right ERP for your business, click here.
3. Your Team Isn’t Trained
Regardless of the features your ERP offers, if your team is unaware of how to navigate the software, it’s virtually useless to your business. While an ERP system is a powerful tool, it’s just that: a tool. Training your employees on how to use your ERP should not be rushed. Improper or insufficient training could result in the opposite outcome desired from implementing your ERP. Instead of increased productivity and reduction of manual tasks, an untrained user will undoubtedly waste more time attempting to self-learn and may ultimately revert back to manual workarounds. Invest in employee training to get the most out of your ERP.
4. Your Data Is a Mess
Your ERP is only as useful as the data you supply it. Sloppy, unorganized data delivers sloppy, unorganized results. Before migrating existing data, be sure to spend adequate time cleaning it. While this may seem a cumbersome task, attempting to retroactively clean data post migration is much riskier and more complicated.
5. It’s Overly-Customized
Tweaking your existing ERP by creating custom functions may seem appealing, but proceed with caution. Introducing too many customizations increases the risk of ERP failure. It also makes maintenance and updates more difficult and potentially more expensive. If you find it necessary to add extensive customizations, it’s time to evaluate if you have chosen the correct ERP for your organization. A better and more cost-effective option is to add a powerful extension that provides increased functionality without the need to customize your ERP.
6. Your Roadmap Is Nonexistent
Implementing an ERP is not a task to be taken on by a single individual. It’s important for employees to understand the benefits of using an ERP. A proper plan, developed and communicated by management, is the key to ensuring everyone is on board. Employees are likely to be resistant to a major change if they’re caught off guard with its launch. While ERP systems can help automate tasks, it’s not an overnight fix. Careful attention to detail, resources, communication, and training will contribute to a successful implementation.
7. You’re Lacking Talent
ERP systems are complex. Learning the intricacies of a new platform takes time. Rather than learning on the go, having an ERP expert, either in-house or by contract, is invaluable. Without talent who understands how to navigate the subtleties of your ERP, your system will lead you to a dead end. It’s essential to work with someone who has ample experience with your chosen ERP. If you don’t currently have a go-to ERP expert, it’s time to attract some new talent.
8. You’ve Skimped on Your ERP Investment
ERP systems are expensive, yes. Be prepared for the cost and do not cut corners. Securing a realistic budget will prevent you from making decisions that will ultimately harm your business. In addition to the ERP implementation itself, you will need to factor in maintenance costs, user fees, and updates into the budget. Skimping on the initial investment may result in ERP failure, which translates directly into losses. In the long run, proper investment in your ERP will increase revenue and reduce overhead costs.
9. It’s Too Slow
ERPs are typically mammoth systems. If you notice that the amount of time it takes to log on, pull up a customer, or simply open a screen begins to increase, it’s fair to suspect that your server speed is responsible for the slow performance. Another potential culprit is your network. Again, ERP systems house incredible amounts of data. Should your network lack sufficient bandwidth, your overall system will run slowly. Here’s how to recover lost time.
10. You’re Not Using Recurrency
Your ERP is currently serving as a system of record; it can’t tell you anything you don’t already know. Recurrency is a seamless integration for your existing ERP that converts it from a system of record to a system of intelligence. By adding a layer of artificial intelligence, you can instantly modernize your ERP and unlock a slew of profit-growing functions. To automate and optimize your ERP, let us show you how to implement Recurrency in less than 24 hours.
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