5 ERP Mistakes That Will Degrade Your Business

An ERP system is meant to streamline your business operations and improve the overall productivity. Undeniably, it can prove to be a game-changer for your business if you make a judicious use of your ERP resources. But more often than usual, we see major businesses falling down despite of their high end ERP-based business models. This happens when you’re impetuously using your available ERP resources. As a matter of fact, taking an ERP system doesn’t marks a full-stop to your work. I.e When you take an ERP solution, it doesn’t mean you don’t have to worry about anything else. In fact, the real work begins when you take an ERP solution as it needs a proper planning and combined efforts from all sides of your business.

Also read OpenTaps Gives You The Best of ERP and CRM. 

Of course, the ERP does all the work for you. It saves your valuable time, reduces the labour, increases the efficiency, streamlines the workflow, improves productivity and augments your profits. But managing an ERP system is very crucial in absence of which it will cause more harm than profit. Following are some common mistakes that the companies often make and end up having disastrous results.

#1 Lack of Planning

Every business requires a proper planning and a sound coordination between the employees. And when you are making amendments in your business, that’s when you need it the most. Implementing an ERP software calls for a lot of changes that you have to make to run your business model unless you want to pay the consequences.

ERP actually involves a lot of work. For instance, if you are taking an Inventory module, then you need to form a centralized chain of the available expertise, deploying workers on different fields, forming different teams and giving them different responsibilities based on their position. And in the end, distributing software rights among different teams. Only after doing proper arrangements for all these things, one should take an ERP software.

#2 Not Knowing The ERP Vendors

Before opting for an ERP solution, it is vital that you do a proper research on the available ERP vendors. Only then you should choose the one that suits best for your business requirements in terms of pricing, investment and potential outcome. No doubt, ERP can be a huge investment and if you take ERP services from a vendor whose pricing is going a little bit off your budget, chances are you’ll end up having major losses. The best strategy is to make a rough write-up for all your requirements and set up a threshold for your budget so that the investment costs don’t go beyond that particular threshold value. Then accordingly, you can start looking for the ERP solutions that best fulfil your business requirements.

Also, you must know about the reputation of that ERP vendor in the market before making a final decision. There have been a plenty of scams and ponzi schemes in the name of affordable ERP software services and you clearly don’t want to be the next victim.

#3 Lack of Knowledge

Many times, it happens when you’ve already taken an ERP solution, a majority of your workers don’t know how to use it in the first place. Therefore, it must be your first priority to teach your staff regarding the use of ERP softwares. There should be proper learning sessions and tutorials on the use of ERP. Only then you can achieve your goals and earn greater profits.

#4 Poor Resource Planning

Before you go for ERP, it is crucial that you analyse and compile all your available data resources. In the end, decisions should be made in accordance to the available data resources. Remember, a poor resource planning leads to disastrous results and you definitely don’t want your business to suffer the outcome.

#5 Persisting Use of Legacy Systems

The ERP modules are meant to replace the legacy systems. But sometimes, even after taking a high end ERP solution, your workers keep going back to the traditional approach. You have to prevent that from happening. What’s the use of spending so much money on a system that you barely use or don’t use at all. So it is your responsibility to keep an eye on all your business activities and ensure that your staff is only using the proposed ERP systems.