Enterprise resource planning (ERP) software allows companies of all sizes to run more efficiently. Your business can become more effective in accounting, inventory management, human resources and customer service. The best programs work to improve functions at nearly every level of the company.
How can you know if your ERP is helping or hurting your business? Pay attention to return on investment (ROI). Enterprise software often comes with a hefty price tag. If you can’t break even or gain an ROI, it may not be working for you. You can choose to adjust how you’re using it or chat with the developer about your concerns.
Learn more about eight things your current program should do to help you find success.
1. Meets Your Expectations
In a recent report, researchers found many organizations are having difficulty integrating big data and resource management technology. The report states 65% of organizations use ERP systems, many AI-driven. If you want to remain competitive, you must figure out how to implement a system for your own brand and make it successful.
Make a list of the results you expect to see after implementing new software company-wide. Knowing what is possible and ROI you’d like to see ensures you judge the software through an objective lens.
While you can fully customize any software, you’ll also pay a hefty price to do so. Instead, figure out what you must have to create a successful process for your brand. Customize the most crucial things and ignore those items that don’t make a big difference to your clients or daily operations.
2. Integrates With Other Systems
The most successful ERP implementation is one that easily works alongside other systems already in place. You don’t want to start using a resource software and realize it won’t adapt to your current database.
Adding new technology should be seamless. If you have to update other systems, your budget may suffer and it will take longer to see an ROI. Thoroughly research the different options and choose the program that works best for your organization.
3. Leverages Historical Data
Digging into the big data your company already has on hand is one of the most empowering things an ERP can do for you. If your system isn’t providing detailed reports that give you a scalable view of your brand, then your current program may be failing your business.
Your system should show you trends in your company. For example, if you own a factory with equipment, your system should provide a list of optimum maintenance calendars to prevent breakdowns and costly repairs.
4. Fixes Bottlenecks in Logistics
One area of concern some organizations face is their ERP system getting bogged down during delivery to customers. When you run into a traffic jam, the issue might not be the software but your processes.
Take a step back and look at where the stalls or stops are. How can you fix them on your end to improve the function of the program? If you’ve fixed your processes and the software still stumbles during logistics, you may need to upgrade to a system that tracks inventory in a different way and automates some of your processes.
The right software will let you speed up processes. If you run low on a popular item, the computer will automatically order more to ensure you have it in stock before running out.
5. Manages Remote Workers
The average worker commutes 28 minutes each way to work. However, the pandemic and changing workforce availability around the globe have made remote work attractive to many employees and employers. Figuring out how to manage people who work in different locations presents numerous difficulties.
What if your ERP system could help manage people in the office, out of the office and everything in between? You’d save time, reduce headaches and make your HR department content.
If your current software can’t scale up to include employee management in a variety of environments, it may be time to upgrade to something new. Ideally, your software should handle payroll, online training and documentation and ensure you meet any regulatory requirements in your industry.
6. Updates to Meet New Technologies
Digital changes are happening so quickly that many industries are having a hard time keeping up. Smaller businesses may not have the funds to invest in new equipment and software frequently.
When it comes to utilizing the best enterprise software, find a company that keeps a finger on the industry’s pulse. For example, are they aware of the popularity of AI bots? How are they working to incorporate the potential of software such as ChatGTP into the system?
A solid development company will also understand your industry and how technology might impact you on a personal level. The way AI tech affects an educational institution will vary from the way it influences a manufacturing facility.
Do some research about what types of systems your competitors use. Pay attention to who your current software company represents or if they have clients in the same industry as you. If they already have clients in your niche, they’ll have a clearer understanding of what you do and be able to meet your needs.
7. Cares About Your Humans
An ERP is only one part of what you do. The best software companies understand your staff must be able to incorporate the new system into their daily operations — without feeling the urge to throw their computer out the window.
Look for a company that offers extensive training. If your current program doesn’t offer online classes or training sessions to get your workers up to speed, you may want to reconsider if it’s the right plan for your company.
All department leaders should understand the system inside out so they can train current and new workers in best practices. However, it’s also crucial to cross-train employees. When employees are familiar with the system, they’ll begin thinking creatively about new applications they can apply utilizing the program.
8. Migrates Data
Another feature to look for is a development company that helps you migrate current data to your new systems. Since the early stages of implementing a new program can be among the most difficult, having a tech expert on board to ensure everything gets moved correctly is crucial.
The best third-party services work with your IT department to ensure everything is up and running and employees understand how to fix minor glitches on their own. They’ll train as they help fix issues in the early days.
Look for a solution that offers ongoing technical support even after the initial purchase. Some software lets you upgrade to bring in their IT workers and have an on-call option to ensure your systems are always up and running.
Avoid ERP Failure
Software systems don’t fail in neat, tidy packages. You may have trouble pinpointing exactly why a program isn’t working for your brand. For example, lack of integration may impact inventory control which then throws off sales data and marketing analysis.
Knowing what makes for successful implementation helps you avoid the failures that some businesses experience. Ensure your software meets expectations, integrates, leverages data, fixes bottlenecks, manages workers, updates, cares and migrates data. Focus on each of these areas and put the tools in place to see positive results from your investment.
