Are you a small to medium-sized business (SMB)?
If so, then there is a good chance you are utilizing accounting software like QuickBooks, Simply Accounting/Sage50, Accpac, MYOB, Excel Spread sheets, Lotus 123 (you'd be amazed what's out there) and others and are very happy with it. It has served your needs for years and as your business grew, your accountant kept everything organized, giving you all the reports you needed. But then your business grew to a point where you were starting to make mistakes.ERP software companies have the best of intentions, but it's helpful to know the following:
- You are taking your company to that next level of operations.
- Chances are, there are many different software products managing different aspects of your business and its causing issues. It is difficult to keep everything synchronized. Each department has their own spread sheets, inventory software, etc. You name it, they’ve created it.
- With an ERP, everyone works in harmony, on a single platform, to develop a product faster, cheaper, with zero mistakes to the customer. It’s lovely when its working, including improved profit margins, but the transition from the former to the latter is the trying part.
Here is what you need to be aware of when implementing an ERP:
- Finding the perfect software
- It doesn't really exist, but it can get close. Having other similar businesses already on it is a good first step.
- If it is close, you need to make sure changes can be made to the core product to accommodate your needs.
- In some cases, changes can't be made and you have to fit your business into their software.
- We recommend finding an ERP company that is comfortable in making changes, and does it in a timely manner.
- Commitment from owners and managers within your company.
- Can’t say enough about this, as it’s critical to a project.
- A lot of project letdowns come from poor support from the top.
- If you are trying to initiate an ERP project through middle management, we'd suggest otherwise.
- Dedication to System training.
- Training on an ERP can get in the way of running your business.
- Be aware that it can be time consuming.
- Focus on a sign off process on each aspect of the training.
- Cleansing your legacy data is a larger task than you think.
- Years and years of data needs to be reviewed first before loading it into the ERP.
- Reasons for the original naming and numbering conventions changes with an ERP.
- This brings whole new light on what you want entered into the database.
- We've seen many projects get stalled right at this point.
- Lack of proper budgeting of both money and time can slow a project down.
- A solid ERP company will work with you on keeping costs down.
- An ERP project should take around 3 to 6 months to implement for an SMB.
- We suggest you sign off on the project scope at the beginning of the project.
- Be careful of scope creep, it can extend a project significantly.
- Change management issues.
- A successful implementation relies on the people using it.
- Significant effort is required to ensure everyone is up to speed on the project.
- Ensure everyone is included in the initiative.
- Understand what role they play after an implementation as this is always a concern.
- We've seen folks who aren't told their roles, purposely slow down a project.
This will give you a good start. Just being aware of the potential pitfalls, will put you on the right path to success.