Enterprise resource planning (ERP) systems are a priority for organizations, with 50% planning to acquire, upgrade, or update their ERP in the near future. Market data backs up this planning potential: By the end of 2022, the ERP spending is on track to reach $51 billion, and by 2030 will more than double to $105 billion.
Despite ongoing adoption, however, ERP challenges remain. Consider that 50% of implementations fail the first time, between 51 and 54% of companies experience operational disruption when they activate ERP systems and 92% of CIOs say that these systems represent organizational bottlenecks that can negatively impact data sharing and collection.
The result? While ERP solutions are indispensable for enterprise operations, they don’t always work as intended. Here are five ways organizations can get more for the money and squeeze the most value out of their ERP operations.
Regularly Review Business Practices
The goal of ERP systems is to streamline operational processes and eliminate data silos. As business practices change, however, initial configurations that delivered line-of-business (LOB) value can become more a hindrance than a help.
Consider a company using a legacy ERP solution to improve accounts payable (AP) and accounts receivable (AR) functions. While this tool may streamline the exchange of data between departments, it may fall short when it comes to data collection and curation. A review of current operations could highlight the need for new functionalities such as robotic process automation (RPA) or machine learning (ML) that could help eliminate time- and resource-intensive tasks carried out by staff.
As a result, it’s worth regularly reviewing business practices to ensure that current ERP frameworks are meeting operational needs. If not, this provides the impetus for companies to explore new opportunities that reduce the risk of manual entry errors and increase the speed of data processing.
Provide Users with Targeted ERP Training
Even the best ERP system won’t deliver value if no one’s using it. This is especially problematic when companies adopt new systems or merge with other organizations and are brought into their ERP fold. While the staff is often comfortable with ERP tasks they perform every day, they may be less confident in using ERPs to complete tasks that only happen once a quarter — or once a year.
To help increase ERP value, targeted training is necessary. This starts with refresher training for rarely-used processes that target as many users as possible, which can in turn cut down on support tickets. It’s also worth investing in a learning management system (LMS) capable of administering and tracking training data both by individual and department, allowing administrators to see who has completed the training and what impact (if any) this has on operations.
Training is also important when new features or functions are rolled out. While these features may improve overall usability and quality of life, they can have the opposite effect intended if staff aren’t fully trained before new options are rolled out. Put simply, people like things that are familiar. Change — even if worthwhile — can come with pushback. Targeted training helps reduce adoption roadblocks.
Identify and Manage Potential Change Issues
In business, change is constant. Consider the entertainment industry, which is currently undergoing massive consolidation efforts as over-the-top (OTT) streaming services and traditional TV providers look to combine offerings and provide users with a more streamlined viewing experience. This has created a continual shifting of ERP solutions as companies merge and one system is replaced with another — depending on how existing staff feels about the changes, this can cause angst and frustration.
To drive value, companies must focus on the human element of ERP. Here’s why: No matter how great the system, humans are ultimately the end users. If companies don’t clearly communicate the value of new systems, explain how rollouts will work, and empathize with employee concerns, ERP solutions will always fall short of delivering value.
Consider Custom ERP Development
Companies also need to think about optimizing ERP systems to meet specific business goals. In other words, where can ERP systems be expanded to improve functionality and increase overall value?
Here, effective expansion comes down to solving an age-old ERP problem: Every business is different. This means that while common functionalities address around 80% of company needs, there’s always another 20% that’s specific to the industry, market, and business itself. Historically, vendors tried to address this problem by creating “industry solutions” designed to deliver these missing functions, but they simply weren’t able to keep pace.
At PDG Consulting, we offer a way to fill that functionality gap through custom ERP development and enterprise resource planning integration services. From custom APIs to push-pull data through business intelligence (BI) systems, our teams help companies capture, curate, and understand the data collected by the ERP systems.
Focus on Future Trends
ERP operations aren’t static. As networks have evolved to include cloud-based and mobile services, ERP solutions have also changed to meet emerging business demands.
Consider the increasing amount of relevant data now available to enterprises thanks to the implementation of in-depth CRM tools, e-commerce sites, and third-party data collection solutions. To make best use of this data, organizations need ERP tools capable of providing in-depth business intelligence (BI) outputs and actionable data visualizations that help inform both short-and long-term decision-making. Companies also need to consider the benefits of AI and ML frameworks that make it possible for ERP systems to “learn” from existing data sets and deliver predictive analytics that inform future strategies.
ERP, Evolved
Getting more from ERP systems means reviewing business processes, offering targeted training, managing change, implementing updates, and expanding your capabilities.
No matter where you are in the effort to improve ERP efficiency, PDG can help. With experience in enterprise technology deployment, management, and customization and expertise with popular systems such as NetSuite, SAP, and WorkDay, our teams can help your business squeeze the most value out of your ERP.
Contact us to discover more