ERP Implementation Challenges

Enterprise resource  planning solutions have been around for quite some time. Whether a business can survive without one is debatable. As your business grows, so do your needs for automation, collaboration and control. Based on your needs you could go for an in-house system or a cloud solution, or even a hybrid of the two. Here are some of the top challenges you will face as an SME when implementing a new ERP system.

Managing Complexity

As a new ERP system is no small investment getting it right should be the number one priority. Depending on the size of your business you may not have the human resource to handle an ERP implementation. In fact, it is not uncommon for small companies not to have an internal IT department, which in turn means lack of valuable IT knowledge. All the above can lead to stress and confusion.

How do you get it right? Probably the best solution would be to hire external ERP consultants who will not only implement the solution, but will also be part of the planning (pre implementation) and training of users (post implementation). Furthermore some vendors offer support after the completion of a project, this can prove to be very useful in the long-term as you can always seek their help when encountering any technical issues.

Acquiring the IT budget

As SMEs may not have unlimited capital resources, some finance departments may decide to cut corners on their implementation to save money. It is important to keep in mind that an ERP system is an investment. It is the tool that will allow and support your business to grow beyond its current limits.

It is crucial that the system a company gets is the system a company needs not only today, but also tomorrow, and don’t forget several systems in the market offer the ability to scale based on your needs. A good understanding of your current and future needs, along with the appropriate financial support can make all the difference to your implementation.

Handling internal resistance

Change can be scary, especially within a working environment. New processes and systems may put a strain on your workforce. Encountering resistance should come as no surprise when implementing a new ERP solution.

The best way manage this is by making sure that everyone is aware of the benefits to the company and the uses of introducing a new system. Management endorsement is also very important. Finally, adequate training is also advised as it will raise confidence levels and reduce uncertainty within your team.