Do you want to reap ERP implementation benefits?
Businesses often have big hopes for their technology investments. Their main purpose is to make the job of people working with them easier. Surprisingly, more companies are ignoring this and are getting into ERP implementation recklessly.
The irony…
Business goals and ERP capabilities failing to meet each other halfway is a complete recipe for disaster. Money is lost, time is wasted, and employees are disappointed.
The good news? Aligning the business goals and ERP system capabilities is way easier than you may be expecting.
In this article, we are going to discuss:
- ERP Alignment Importance
- Business Goals that ERP Systems Can Help Achieve
- Matching Goals and ERP Functionalities
- Leveraging Expertise from ERP Solutions Partners
ERP Alignment Importance
If there is one thing that most ERP projects have in common, it is bad planning. It’s not because of poor-quality software. According to TrueList, statistics show that between 55% and 75% of ERP implementations fall short of expectations.
That is an alarming number.
Businesses that do succeed have one thing in common. They align their business goals and ERP system functionalities. This way, they understand the business first. Then they look for the technology that can support it the most.
Collaborating with experienced netsuite channel partners and expert ERP solutions partners is a sure-fire way to avoid such an ERP implementation pitfall. They help bridge that technological-business skills gap.
In our opinion, it’s quite a simple concept.
Business Goals that ERP Systems Can Help Achieve
Before selecting an ERP solution, each business should list their goals. Most business owners opt for ERP for the following reasons:
- Financial management – smoother tracking of cash flows, expenses, and revenue
- Operational efficiency – better handling of day-to-day processes
- Data visibility – deeper and real-time data insights across all departments
- Scalability – the possibility of growing without crashing their systems
- Customer experience – quicker response time and customer service delivery
The key is prioritizing business goals and needs. Not every business needs all of them. Tackling all functionalities at once will only lead to failure. Focus on what can move the business needle.
Matching Goals and ERP Functionalities
This is where the main magic happens.
Once the business goals are clearly defined, the process of matching them to ERP capabilities becomes quite easy. Every ERP system excels at something. The hard part is finding the right one.
Financial Goals
If your goal is to achieve better financial management, the ERP features you should focus on include:
- Automated invoicing and billing
- Multi-currency support
- Real-time financial reporting
- Budget tracking and financial forecasting
These features will help financial departments gain visibility into the business and make better decisions.
Operational Efficiency Goals
Are you looking for a way to reduce time and manual effort wasted? Then you should look at ERP capabilities that automate repetitive tasks. Things like inventory management, order processing, and supply chain tracking.
As per DocuClipper, 78% of all organizations have experienced a rise in productivity after ERP system implementation.
That is quite an achievement for any business.
Scalability Goals
Businesses looking for a system that can grow along with them and their operations need an ERP solution that will scale with them. Cloud-based ERP solutions are the answer here. They offer great flexibility without the hassle of having to worry about servers and infrastructure.
The numbers don’t lie. Cloud ERP adoption has been on the rise over the past years. More and more businesses are opting to switch from old-school on-premise systems to cloud solutions that can scale easily.
Customer Experience Goals
Happy customers are returning customers.
ERP solutions with built-in CRM capabilities will help your teams respond faster. They will also provide them with a complete history of a customer at a glance. This will lead to better services and relationships.
The Role of ERP Solutions Partners in Alignment
There is one important thing that most businesses seem to be ignoring…
Achieving ERP alignment is challenging to do without any third-party help. This is where working with the right business partners becomes important.
Expert ERP consultants have knowledge about both technology and the business. They can help with the following:
- Assessment of current business processes
- Identification of the gaps and opportunities
- Recommendations for the most appropriate ERP features
- Guided implementation from start to finish
- Training and post-implementation support
The best partners will take the time to understand each business’s unique needs. They won’t just push software. They will tailor-made a solution that will actually work.
Common Alignment Mistakes to Avoid
Too many businesses make the same mistakes all the time. Knowing what to avoid can save a lot of headaches in the future.
Mistake #1: Opting for features over fit
ERP software with many features does not automatically mean that it is the right choice for your business. Focus on your business’s needs and requirements. Do not go for what looks flashy during a demo.
Mistake #2: Ignoring Employee Feedback
The employees that work with the system every day know the problems firsthand. Involving their feedback at the initial stages of ERP implementation will lead to better alignment and a seamless adoption.
Mistake #3: Rushing the implementation
Speed is very alluring. But hasty implementation only causes more issues than not. Take time to plan properly. Perform in-depth testing and make sure everyone is trained.
Mistake #4: Setting unrealistic expectations
ERP software is a powerful tool. But it is not a magic one. Setting realistic expectations will ensure that you are not disappointed.
Measuring Alignment Success
How can you be sure whether or not the ERP alignment is successful?
The answer is quite simple. By tracking the metrics that are essential for success and keep track of them regularly. Some of the key indicators to track are:
- Time taken to complete a process
- Errors in data entry
- Employee adoption rate
- Customer satisfaction rate
- Financial reporting accuracy
If these metrics show signs of improvement after implementation, your ERP alignment is succeeding. If not, then something is amiss, and it’s time to retrace your steps and identify where the mistake was made.
Wrapping It Up
Aligning the business goals with ERP system capabilities is a must for any ERP system success.
Businesses that have achieved that alignment show real success. Better efficiency, happy customers, and strong growth. The ones that haven’t end up with a costly software that is lying in the corner, collecting dust.
To sum everything up quickly:
- Define business goals before evaluating the technology
- Match particular business goals to particular ERP features
- Collaborate with experienced ERP solutions partners
- Avoid common mistakes like rushing, disregarding feedback, and so on
- Track the performance of the system by measuring relevant metrics
Getting the ERP alignment right is hard work. But it is quite worth it. A well-aligned ERP system will become your secret weapon. Something that will drive your business forward rather than being just another line on the balance sheet.
Take your time and do the research before getting into ERP implementation. The outcome will speak for itself.
