Top 7 keys to the successful management of an ERP

The management of an ERP in companies was born from the need to adapt traditional information systems to the exponential growth of clients and the attention to their demands.

Without this type of integrating tool, as your business grows, it can present delays in the processes and a consequent loss of income.

For this reason, it is essential to have an ERP (Enterprise Resource Planner) system adapted to the needs of your company. Otherwise, it is likely that you will not take advantage of its potential and even generate losses.

With this in mind, in today's issue, we will tell you about 7 critical aspects to take care of in managing an ERP, as well as the experience of 3 large companies with this type of tool: Nike, Hewlett Packard, and the United States Navy.

What are ERP systems?

First of all, we must be clear about what an ERP ( Enterprise Resource Planning ) is. This type of software is a management system that allows you to optimize all operating processes and improve productivity.

Unlike isolated solutions, ERP systems work in an integrated manner so that you have the opportunity to consult the flow of information in a timely manner and monitor the performance of your organization.

Although there are different types of ERP, the common denominator is that they are responsible for systematically unifying the areas of the company.

7 critical factors when implementing an ERP

If your company needs the implementation of an ERP system, you must take into account several factors to make it successful and with a minimum of risks or failures during its operation.

According to SelectHub “ an ERP failure can be classified as a complete system failure or an inability to meet implementation goals ”.

In this sense, take into account the following factors for the successful management of your ERP :

1. The budget

Your estimate should be accurate enough to ensure a solution that is affordable for your business and has all the features you need.

According to SelectHub, 45% of ERP projects are over budget, which is evidence of the need to formulate a plan in advance and clearly communicate it to your vendor.

2. Objectives and goals

The formulation of objectives and goals is very important to focus efforts and achieve financial results such as ROI or satisfactory return on investment.

You need to be clear about what your organization needs; otherwise, you run the risk of getting a solution that doesn't work.

3. List of business processes or business processes

A detailed record of the important activities for the profitability of the company must be delivered to potential suppliers so that their offers meet these requirements.

In this regard, David Dozer, chief technology officer of Blaze IT LLC, argues that if processes and “ master data ” are not well defined, reported, and understood among the parties involved, it could lead to a “recipe for disaster”.

4. Take employee information into account

Employees have first-hand information on the operational details of the company, which is very useful to complement the list of business processes or commercial processes.

You need to know how much they will be affected by the change when implementing an ERP.

5. Technological resources

If you implement a traditional ERP system, it is necessary that you have specialized information technology personnel to help install it and understand its operation.

On the contrary, software in the cloud -such as Bind ERP- does not require prior expertise: it is not installed, the support service is included and, furthermore, its interface is more intuitive.

6. Staff training

Keep in mind that working with an ERP is a change in the traditional work paradigm in companies. Say goodbye to paper accounting and other manual administrative and operational records.

Educating staff is a key factor in making clear their scope and responsibilities under the new system because there will be changes to the structure of the data and its interpretation and dissemination.

7. Vendor Promotions

Take advantage of the trial versions, freemium or with a satisfaction guarantee, as an opportunity to test an ERP system in your company.

Some providers offer trial periods for a limited and sufficient time, as is the case with Bind ERP, which currently gives you a 30-day guarantee or money back.