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Ken Jacobsen, The TM Group Inc.

3 Reasons Companies Struggle with ERP Adoption and How to Overcome Them


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Enterprise resource planning software has become a standard of the modern business environment. Companies are taking advantage of ERP solutions in order to plan products, track deliveries, manage inventory and perform other crucial functions. Despite its widespread use, there are still businesses that are hesitant to update their ERP software or, worse still, use it at all. In order to stay competitive in the modern marketplace, an organization needs to get over their resistance and embrace ERP solutions. Here are the three most common fears of ERP adoption and how a company can overcome them:

1. Fear of change
Change can be difficult. ERP Software blog suggested fear of change was the leading cause for companies delaying new technological solutions. The blog article quoted a Benchmark survey that found more than 50 percent of businesses felt they were not well prepared for any kind of major change. Companies are under the impression that change will lead to lost time and resources. It is also believed employees will protest any alteration of daily operations and the need for retraining.

An open source of information is the key to combating fear. Change is aggravating when people don't know why alterations are being made. First, study your company and see what processes and software can be improved. Make sure you know what you want to get out of the new tools and then select a software that meets your needs. Work with an ERP partner that is able to address you one-on-one and answer all your questions. Let your employees have their say on what they expect from an upgrade of business practices.

You can also select a program or upgrade that will work in conjunction with your current system. For example, most companies utilize Microsoft Office products and Microsoft Dynamics offers an integrated version of Office that's keyed to work with ERP. Slowly introduce the technology. It doesn't need to feel like a full upheaval but rather consistent improvement of the infrastructure that is currently in place.

2. Contentment with current system
This fear of possible restructuring causes businesses to settle for their current systems. Jason Slater Technology News suggested that companies were going through a lot of hassle to justify using their current business operations. Managers ignore the advantages of cloud-deployed solutions. Employees must continuously download or print huge chunks of information every time time they have to go mobile, instead of taking advantage of remote data tools. These old practices may currently be aggravating but as technology advances they may become obsolete altogether.

A Computer World UK article found business heads saw lack of technology skills as the primary reason they may lose out to competitors. Those surveyed by the Economist Intelligence Unit also stated they felt there was not enough communication between their IT departments and the rest of their company. This disconnect from technology could end up costing a business.

Cloud-deployed software leads to a more integrated office. Information can be accessed conveniently and in a uniform manner. Employees can even make use of personal mobile devices. Providing tools that work in a similar fashion at every level of the company will create a workspace that is competitive and cooperative.

3. Price and selecting features
After fear of change and settling with current systems, an Aberdeen Group survey found worry over cost and selecting features were the reasons companies were hesitant to adopt new ERP solutions. These fears might come from a lack of understanding on how ERP software could benefit a company. The Benchmark survey found 42 percent of companies beginning the ERP process have not analyzed their finances and calculated the possible ROI of the new tools.

Once again, information will assuage these fears. Before you select a program, find one with the features uniquely suited to your business. Analyze your finances and see how a more streamlined office will profit you. Find an ERP partner who will work directly with you and will communicate how the software can best provide for your company. A slow implementation process that involves teams from every part of your company is best. An ERP installation that works with your current system, involves the entire infrastructure of your company and provides the latest tools at a cost-efficient rate will ease fears of ERP implementation.

by The TM Group

One Response to “3 Reasons Companies Struggle with ERP Adoption and How to Overcome Them”

  1. Resistance of accepting a new way of working by employees is also reason why erp and other solutions fails. It is resisted by most of old employee who are working from long time. New entry are already tech savy and comfortable with the technology.