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Top Three Factors to Ensure ERP Adoption Success

Top Three Factors for ERP Adoption

One of the primary benefits of using an enterprise resource solution (ERP) is its ability to integrate all of your systems and provide accurate data flow between all areas of a business. However, while this is a tremendous boon to a business helping to save money and promote growth, it is this integrated design, and the lack of planning around integration that can cause problems. Many ERP systems are out of date running on versions years behind the current release and need major updates and bug fixes. Further, in an effort to save money and promote agility, many companies are moving to a cloud-based ERP. All of these factors help contribute to a doomed ERP adoption.

Fortunately, there are signs that you can provide early warning that your ERP is on the verge of trouble. And, while these issues may not be problems now, they could fester and cause larger problems down the road. Taking into consideration the impact an ERP will have on all areas of a business before implementing an ERP can help mitigate any future disasters. Early response time is key.

Factor 1: Keeping Up with Technology

While most of us clamor to get the newest smartphone when it is released, the majority of organizations take their time before adopting a new technology. This is understandable considering the investment required for new software, especially an ERP such as Microsoft Dynamics NAV.

As Microsoft continues to improve Dynamics NAV, they add new features, functionality, and performance improvements with every release. As changes happen fast, having the ability to keep pace with the technology is critical. A comprehensive upgrade subscription plan makes annual ERP upgrades less painful, less expensive, and much less disruptive and can help ensure ERP adoption success.

Factor 2: Overreliance on Legacy Technology

Closely related to the problem of ‘keeping up with technology’ changes, many companies look to their ERP solutions with the focus on just maintaining old systems; the concept being “the devil we know is better than the devil we don’t.” Companies resign themselves to slow, outdated systems out of a fear of change.

While investing in an updated ERP can be a daunting endeavor, the price for not doing so, can be even higher. From the ability to recruit talent to work on your system, to mitigating security risks, ERP investment is integral to your company’s success. Moreover, while ERP software may be a big investment, in terms of improved efficiencies, increased productivity, and accelerated growth potential, the return on investment is worth it. As businessperson Phillip Green states, “Good, bad or indifferent, if you are not investing in new technology, you are going to be left behind.”

Factor 3: Overestimated Savings from the Cloud

For years, cost savings and flexibility have been the key selling points for cloud services. But banking on savings — especially in staff resources — when undertaking ERP in the cloud can come back to haunt you. Some organizations expect that moving to the cloud means that the software will run itself and you no longer need internal support staff. Internal support for your ERP will always been needed regardless where your ERP server lives, whether it is in the cloud or on-premises. The cost savings you will experience from a cloud-based ERP will be in hardware, not staff. It is important to keep this in mind when budgeting around ERP and overall company infrastructure.

Investing in an ERP can be the competitive advantage for your business. However, if not undertaken with a thorough understanding of your company’s needs, and the software’s capabilities, successfully adopting and ERP, and reaping its benefits will elude your company.

For more information on how to choose an ERP solution that is right for your business, how to choose your ERP project team, and general ERP information please contact us and one of our ERP consultants can help talk you through what options are best for your business.

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