Companies are investing a great deal in adopting new ERP solutions, sometimes tens of millions of dollars, hoping to achieve the promised results of increased productivity, better decision-making, and more accurate processes. However, recent surveys are showing that many companies are under utilizing their ERP solutions, failing to maximize the potential to create a positive return on their investment. A recent Accenture survey of 300 senior IT professionals at the largest 2,000 companies in North America and the United Kingdom revealed these startling figures:

1. Realizing the Potential of Your ERP
8 ReasonsWhy Businesses areFailing to Fully UtilizeTheirERP Systemsand
How to FixThem
Companies are investing a great deal in adopting new ERP solutions, sometimes tens of
millions of dollars, hoping to achieve the promised results of increased productivity,
better decision-making, and more accurate processes. However, recent surveys are
showing that many companies are under utilizing their ERP solutions, failing to
maximize the potential to create a positive return on their investment. A recent
Accenture survey of 300 senior IT professionals at the largest 2,000 companies in North
America and the United Kingdom revealed these startling figures:
 31% utilize their ERP system in half or less of the organization
 64% use their ERP system's core functions
 19% have fully integrated their ERP system with client systems
 50% purchased ERP systems that where they just needed half of the systems' abilities
 20% don't make use of all performance due to absence of training
There are many ERP horror stories out there about taking off costs, the aggravations of
modification, and losing control of the business. Often the trouble of an ERP can become so
excellent that a business may throw it in the trash and cut their losses. The reasons that things
go awry here abound. This article will talk about 8 typical mistakes companies make that
prevent them from fully recognizing the potential of their financial investment and how you
can repair or avoid those mistakes.

2. 1. Using the incorrect consultant to assist choose an ERP system
With hundreds of ERP systems offered, it can be tough for an organization without any
competence in the field to select the ideal one for their business. These businesses will
typically turn to a consultant who can help them make the decision. Sadly, these consultants
frequently represent a particular ERP, or at the minimum, always suggest the system that they
are most familiar with whether it is right for the business. They might talk just about the
benefits of an ERP and skip any talk about the negative effects of executing their system. Or,
they may have a strong background in the ERP they represent, but not a strong background in
business operations.
Fix: Organizations need to just use consultants who are not connected to any ERP system.
They ought to be helping company owner make decisions about the very best ERP system for
their specific organization. A great consultant has a strong background in company
operations and takes some time to understand your unique business. They also make you
aware of potential pitfalls in advance concerning execution headaches and other foreseeable
problems. You can help your consultant make the ideal decision by being vocal about your
budget, timeline and requirements. Then, discover a supplier who can provide on these
considerations.
2. Choosing an ERP that is too huge
There is such a thing as too much of a good thing. Choosing an ERP system that uses
excessive functionality not only is an unnecessary waste of cash, it develops more troubles
and disappointments in the application and training processes. Robust ERP solutions offered
by companies like SAP and Microsoft are not only very pricey, but likewise supply a large
number of modules that are not beneficial to all industries. Around 50% of organizations
surveyed stated they do not need all their abilities provided by their ERP and find their ERP
service cumbersome.
Fix: When approaching an ERP service, services must take a look at not what it is, but rather
what it can do for their company. How can implementing the ERP service mesh with their
existing company operations? Many services will need a custom ERP option that is tailored
to fulfill only the particular requirements of their organization, rather than acquire a more
expensive system that is overflowing with unnecessary features.
3. Poorly implementing the ERP solution
Regrettably, the problems with ERP application are not marketed in the sales process and bad
implementation can be far more expensive than the ERP solution itself. Often, problems
swallow up a business after the sale due to the fact that they have actually not correctly
planned how the option can be carried out. They fail to have a main contact for ERP
implementation that is familiar with the software application.
Repair: Talk about with your vendor or consultant the expectations, both great and bad, that
develop during the application process. Make certain the lines of interaction will remain open
after the sale is last and there are ERP application managers to assist with implementation.
Ideally, the implementation supervisor will be an experienced employee with a solid grasp of
the budgeting requirements of the business. Have a plan prepared for the ERP that specifies
where you want to migrate your data, which resources will be allotted to which departments,

3. and who will supervise of preserving each aspect of the ERP system
4. Misunderstanding the purpose of an ERP system
In some cases impractical beliefs and miscommunications can keep an ERP from recognizing
its complete potential. Often business wrongly think that an ERP service is just another kind
of software application and is for that reason only within the domain of the IT department and
not something human resources or upper level management need to be worried about. These
exact same executives complain that the ERP option fell far short of the guaranteed results.
With beliefs like this, it is not surprising that 31% of businesses say they utilize ERP in half
or less of their organization.
Fix: An enterprise resource preparation system utilizes the word "business" for a factor, it is
meant to extend throughout all elements of a company and business departments and keep
them collaborating. When all parts of the enterprise are utilizing the system, the company will
be harmonized and the departments will be synchronized.
5. Not providing sufficient training for the ERP system.
After the cost of purchase and execution, companies are often hesitant to spend more cash on
training their staff to use the ERP system. But by cutting corners on training, they might wind
up spending more in the long run than they would on proper training. 20% of services
surveyed stated they don't use all the functionality of an ERP system due to absence of time
to learn how to use the functions. Not just will poor training fail to fully recognize the
potential of an ERP option, it might cause the service to become more cumbersome than
useful. When even simply one worker does not understand how to use the system, it can
throw a wrench in the entire service.
Fix: When all employees know how to work the system, everything will stream more
efficiently. Don't assume workers can simply wing it, and take the time and expense to train
them properly. Program them how to establish and perfect competency in a specific system.
This will assist optimize the potential of the ERP system.
6. Failing to incorporate the ERP system with client systems
An ERP does not simply help with the flow of details in between all company functions
inside the limits of a company; it can likewise be utilized to connect to outside customers.
Yet just 19% of companies have ERP systems that fully incorporate with customer systems
and 37% of UK and 27% of NA companies have little or no information showing clients
whatsoever.
Repair: Put in the time to comprehend how and why your ERP system can integrate with
customer systems to share data. Determine the potential advantages that will help you
optimize the potential of your ERP service.
7. Stopping working to use ERP as an objective-setter
A lot of services utilize an ERP system mostly for tracking accounting data. However, one of
the greatest advantages of an ERP is the capability to enhance company efficiency by keeping
track of staff members' key performance indications. Utilizing an ERP system as an objective

4. setter needs that services use both monetary and non-financial metrics to set objectives.
Nevertheless, just 11% of companies believed their ERP system recorded all or the majority
of the non-financial information required to measure these objectives.
Fix: Determine what your key efficiency indications are for your workers and guarantee they
are captured through the ERP service. By keeping an eye on employee performance, you can
set measurable objectives and determine strengths and weak points.
8. Not knowing when it's time to update an ERP system
An ERP solution is a huge investment, so there is a temptation to keep an outdated system
around rather than spare the expense to buy, execute, and train employees on a brand-new
option. Nevertheless, the longer a company waits the harder it is to transition to a new ERP
option.
Repair: Remain in contact with reliable consultants and vendors who comprehend your
company growth and can best suggest when it is time to upgrade to a brand-new system.
Advantagesof a Totally WorkingERP
By facilitating the circulation of details to each organization function, implementing finest
practices into the ERP systems, and integrating business procedures, an effective ERP option
will save time and expense. Centralized service data eliminates the requirement to integrate
changes through multiple systems, an extensive view of the business enables better and faster
decision-making, and finest practices ensure redundancy is gotten rid of from processes.
 Increased performance, less redundancy
 Much better management and decision making
 More precise process with fewer mistakes
 Market forecasting and trend identifying
The Secret to ERP is Simpleness
In general, the best thing an organization can keep in mind is that an ERP system need to be
basic and sophisticated. Services require to recognize what their requirements are and choose
an ERP system that best satisfies only these requirements without extraneous functions that
slow down the user and add to the expense. Such an option is easier to carry out and it is
simpler to train workers on using the system when they can understand how each part works
and the advantage it produces.
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