Critical Success Factors For ERP Implementation: People, Systems and Processes

Successful implementation of an ERP software system in any business requires careful planning and consideration. 

Choosing the right ERP software solution for your company is a big decision and will likely require a considerable investment. An ERP software system will ultimately support the entire organisation to deliver savings and benefits throughout - so there are several things to consider and pitfalls to avoid when making your choice.

However, the people, systems and processes in place will ultimately determine the success of your project moving forward. ERP software goes beyond simple functionality helping to improve the way you do things, it incorporates and delivers the latest technology to solve industry problems, improve business processes and empower employees to do more for your business.  

What is the key to successfully implementing an ERP system? In this blog, we look at how people, processes and systems are critical success factors for ERP implementation.  

How To Achieve a Successful ERP Implementation

People

The decision-makers in charge of your business's ERP system are not always the everyday users. If the ERP system you choose to implement fails to meet the needs of your users across all areas of the business the likelihood of them using the system to its full capability is low. This presents room for a wasted investment which could have significantly scaled your business to the next level.  

The users should be considered, or you may come up against resistance to using the system that you have just invested a lot of money into. Many are initially resistant to change, with some of your employees stuck in their ways and unwilling to change how things are done because if it works, why change it? This outlines the issue of educating your staff about how and why an ERP system can benefit not only your business as a whole but also how it helps support them in their job role. A huge part of this is good training, which your chosen partner can provide.

Involve your staff, let them see their views have been considered and keep those who will be using the software involved in the process – talk to your staff and keep them up to date. Getting your staff on side is half the battle and will help with successfully implementing ERP software. This ultimately leads to improved processes and a more efficient workforce.  

Processes

Generally, processes within a business are the route of how things get done. Many organisations will not have reviewed their processes for a long time, because "it's the way it's always been done".

Putting these processes in the spotlight can identify weaknesses and vulnerabilities which may be costing you money. This provides scope for your ERP software solution - the issues identified will need addressing with the ERP software itself. 

Improving processes provides many intangible benefits, including improved time saving, reduction in errors and easier tasks which can ultimately result in tangible benefits such as money saved. For example, you could get your product to market quicker and at a lower price because you've reduced time from your processes. 

Systems

Systems are the technology that you use. When was the last time your systems were reviewed? It's important to consider whether the technology you use supports the growing needs of your business. 

As technology advances, so do the capabilities of businesses in terms of bettering their offering to ensure they compete on a larger scale. Technology advancements have been particularly important for ERP systems as it has allowed for greater functionality, bridging the gap between people and improved processes.  

Not only that but ERP technology has seen a rapid advance in multiple areas as new devices, ideas and capabilities are realised. For example, by successfully implementing an ERP system, businesses can take advantage of AI, machine learning, real-time data analytics, IoT devices and much more to solve common industry problems such as inventory management, demand forecasting, data visibility and customer service.

Other Considerations For Implementing ERP Software

Cloud or on-premise - which suits you best?

Although cloud technology has become increasingly popular, is it the right option for you? Make sure you’ve carefully considered the cloud vs on-premise debate to make the best decision for your organisation.

What functionality do you need?

Within a modern ERP system, there can be thousands of functions, so it is important to select the system that has what you need or can be configured to your needs. Whilst systems with long lists of functions may look impressive, it’s important to remember what you need, as many won’t be relevant. This can affect how much you’ll pay for an ERP system. Your partner should be able to guide you on this matter.

Choosing a partner

Be sure that your chosen partner can provide the level of support and customisation you need. Make sure they understand your business and specialise in your industry.

At Syscom, we only implement software solutions to businesses we have industry expertise in. We work with manufacturers, distributors, apparel and furniture companies.

Think about the future

Think about your business’s future, plans, goals and direction, and how you will achieve this. Consider the flexibility and scalability of any potential ERP software system. Again, ensure that your chosen partner is fully aware of, and committed to your goals and will engage with you to deliver the project required and not what they believe you need.