Last Updated on May 17, 2023
05 min read
How is a smooth installation of ERP possible? Which elements need to be taken into account to make sure the ERP system adoption is successful? What hazards are usually connected to this intricate procedure, and how may they be prevented? So many inquiries… And we were able to address them in a single article. Interested? Keep reading to broaden your horizons with useful risk reduction advice.
Without a thorough grasp of the ERP implementation plan, hazards cannot be avoided. Due to the complexity of this procedure, we have created a quick step-by-step guidance based on the ERP services provided by Wan Buffer.
We think that excellent people are the foundation of great work. The first step in our ERP deployment process is selecting the appropriate expertise because of this. To ensure the implementation process will go well, we choose qualified specialists with the required degree of expertise and experience. We also work with ERP consultants.
There is no question that success depends on having a solid plan. So that we may produce good outcomes, we carefully prepare every area, including the budget forecast, the implementation schedule, the training duration, the testing specifications, and the go-live activities.
It’s time to start the process of moving your company over to the new ERP since we’ve done the best we can with our planning and preparation. This procedure entails mapping old data to new database fields, data cleansing and verification, database setup, testing and validation of legacy data, and data transfer to the new system, to name a few.
Every successful project requires appropriate user uptake, and ERP deployment is no different. We use all of these techniques to give trainees a thorough understanding of the ERP system we deployed, including role-based training, defined feedback, and clear communication.
The day that the ERP deployment goes online is what we have been working toward. We are ready for any potential complications or challenges that may arise because of such meticulous planning. We carry out pre- and post-go-live testing, examine the speed and dependability of networks, and choose KPIs for project evaluation.
It’s now time to assess the installation of ERP. Does the project adhere to the client’s set financial constraints? Does the ERP system support their corporate objectives? There are many questions you must ask about ERP deployment, but when you deal with Wan Buffer, all the responses will undoubtedly be favorable.
You already know how to deploy ERP, which is great. However, it’s not as simple as you may imagine (or hope). This is because there are a number of major problems you could encounter when integrating an ERP system into your workflow. We’ve broken them down into different categories to make it easier for you to avoid encountering these typical problems.
It is no secret that the cost of ERP implementation is high; the investment will pay off after a year at the earliest. Owners are typically exposed to financial sector risks. They are committing to a large restructuring of the company’s activity soon by choosing to deploy the ERP system, which will probably necessitate a sizable investment of financial resources.
The ERP system increases the company’s management process transparency, which necessitates reorganizing the organization’s procedures and streamlining various business processes. This may also necessitate modifying the system for motivating employees and implementing new work technologies. The major risk for top management is that an ERP implementation project can produce less favorable financial results than anticipated.
This team oversees collaborating with outside consultants to design the specifications for a particular ERP solution. Additionally, they are not released from their principal duties when the system is implemented, which could negatively impact their productivity at work.
For the implementation of this project, external consultants have less time available than business workers. Therefore, any delays brought on by the client have a direct impact on how effective their operations are.
After identifying the four main risk groups, it is time to think about the risks that can arise and the ways to mitigate them in greater detail, emphasizing the critical factors that each of these groups should pay attention to.
This risk typically results from two significant oversights in project planning:
Thankfully, these dangers are easily manageable. One of the best ways to deal with this problem is to hire project management consultants and outsource a project audit in order to improve employee training effectiveness and, as a result, provide favorable financial results down the road.
Owners run the danger of running into this issue if the system’s adoption is prolonged due to internal or external organizational changes. Let’s use a good example to illustrate it. For instance, a business may increase its level of expertise during the ERP implementation process by incorporating more departments and/or introducing more services. The system will therefore require modification, if not complete transformation, of the software platform. The business management system won’t be completely effective in the long run unless it is updated.
How to reduce the risk
The company’s development strategy must be taken into consideration at the project planning stage in order to minimize this risk. It would also be a good idea to think about system adjustment possibilities and pick a software platform that allows for customizing, configuring, or adding new functional modules.
In truth, integrating ERP into the organizational framework of a company takes time. Unfortunately, it would be challenging to swiftly enhance corporate operations with ERP if they were disorganized. When employees dive headfirst into the deployment of a new business management system, they lose sight of their current obligations.
How to reduce the risk
First and foremost, top management needs to set clear roles and obligations for employees taking part in ERP installation. This important step will produce enough beneficial experience with ERP solution implementation.
Following the rollout of the new ERP system, some techniques used by senior managers run the danger of losing their effectiveness. For instance, if the department head had previously been successful due to his organizational skills, he would now be more accountable for thorough analysis and the development of labor efficiency. This is due to the fact that the ERP system will handle the majority of organizational tasks.
How to reduce the risk
By actively taking part in the implementation of the system in their departments and simultaneously adopting new management techniques, managers can lower this risk.
On the one hand, every team member takes part in decision-making and speaks for their department’s interests. On the other hand, every employee operates in the best interests of the business as a whole. Employees run the risk of getting caught between two fires because these interests sometimes conflict. Furthermore, certain employees who aren’t accustomed to using these business management systems may not support a company’s ambitions, such as the deployment of an ERP system.
How to reduce the risk
HR managers might set up regular meetings with various departments to resolve growing issues at an early stage in order to avoid this undesirable situation.
With all the aforementioned factors considered, it is obvious that different segments of the business may be subject to different levels of risk when implementing an ERP system. The likelihood that the project would take longer than anticipated, for instance, is important to the company’s owners or top management. While not of utmost importance to consultants, owners, or even employees involved in the implementation, the risk that the system’s implementation will necessitate a significant increase in the level of employee qualification may be crucial for top managers and staff members of the company who are not involved in the implementation.
In general, risks can be reduced by adhering to a few crucial guidelines that we were able to develop because of our extensive experience. As a result, the following are important aspects that affect how well the ERP system is implemented:
Any change, even a change for the better, is always accompanied by downsides and discomforts, according to renowned English novelist Arnold Bennett. Without a doubt, there are no projects that are risk-free. Any effort involves certain changes, and since change is usually accompanied by uncertainty, taking risks is necessary. Avoiding risk in the installation of ERP is thus not an option in this regard. Instead, businesses should concentrate on effective solutions to control potential hazards.
Notably, the deployment of an ERP is a difficult procedure that entails numerous functional and technological modifications. Therefore, a predetermined strategy for managing ERP installation risk can guarantee the project’s success.
In the above Blog, we highlighted some common risks associated with adopting an ERP system. As mentioned earlier, the key to a successful ERP implementation lies in choosing a trusted ERP Development, Implementation, and Customization Company.
Fortunately, you can put your worries to rest as Wan Buffer Services, your reliable software development partner, is here to provide top-notch ERP setup and related services for your company. You can rely on us to ensure a seamless and risk-free adoption of your ERP system. Feel free to Contact us to learn more about the practical implementation of a secure ERP solution.
