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Here are 6 Most Common Challenges When Implementing ERP

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Here are 6 Most Common Challenges When Implementing ERP: Enterprise Resource Planning (ERP) is a common business tool, especially when the world is going digital in an unstoppable trend. It becomes relevant since spreadsheets are no longer sufficient for big data and algorithms businesses.

ERP for SME will smoothly help your business run clean, transparent, and automated operations and processes. It collects and organizes your business’s key information.

However, many businesses have encountered challenges when implementing ERP systems, and learning them will help you avoid them. To get a seamless integration, here are some challenges you need to handle.

1. Integration Issues

When you intend to implement ERP for SME, you first must determine which of your existing processes benefit from the system. This could be difficult, especially if your business has different competing divisions you have considered, which will hinder your company’s workflow.

But you need the ERP to ensure you have only one source of data in your business. Remember that more time is wasted without ERP when pulling together data segments from different spreadsheets and other sources. Therefore, evaluate the already existing processes that would be better with ERP as you plan to implement the system.

2. Flexibility

Another challenge you can face when implementing ERP is inadequate flexibility. Your business might have to adjust existing processes to suit the ERP system to ensure it works. This may not be straightforward considering the time and resources you require to reorganize your company.

Also, note that you will still have to retrain your team, which might not seem worth it. However, this is a challenge you can avoid by choosing the right software that will make your integration become seamless and improve flexibility.

3. Resistance to Change

Although everyone can understand that change is inevitable, most people will not accept change. Therefore, you might experience delays or resistance from your team when replacing such an integral system.

The situation can worsen when your team fails to understand your business’s benefits for implementing the ERP. But you can avoid this challenge by properly training and educating your team before implementing the system.

4. Vendors Vetting

It is common to be swayed by an eloquent marketing team, and you only realize later how restricted the functionality of the system you installed is. Therefore, it is crucial you do adequate market research and properly vets the vendors to ensure you get the best system.

Generally, it is highly recommended you first meet about five different providers before making conclusions. This might not sound very easy and time-consuming, but it is worth it, as ERP experts will advise you.

5. Maintenance Cost

As you install an ERP system, please ensure you are financially prepared no matter how cheap the system might seem at first. All systems will require regular maintenance meaning additional costs.

This is one of the reasons you should vet your vendors adequately to understand the maintenance cost before you finalize your decision. You might pay large sums after implementing the v system, which might affect your business.

6. Insufficient Knowledge

No matter how much you invest in ERP systems, it may not profit your business if the system’s key features are not understood or used. This can make you unable to speed up functionality, automate your business processes, or achieve more targets.

All these mistakes are avoidable. You can seek advisory services from ERP systems experts who will advise you and recommend potential partners who can help you get the ERP system right for you. It is possible to have a successful ERP for SME implementation.