Reduce ERP Implementation Cost – The Best Ways to do It
Enterprise Resource Planning (ERP) systems help in improving business practices and increase your business efficiency. Now the question is, how does an ERP software do these things?
ERPs are integrated systems. They run on a central database and in real-time. It helps you to manage your business process. Functionally, they are broken into different applications or modules with every unique set of tools for different business processes. For instance, some of the common ERP modules include inventory management, accounting, human resources management, and purchasing.
Most of the modules have a consistent look and feel about them. Every individual module includes specific functionalities addressing a particular business need. For instance, an ERP accounting module will include a full-suite accounting software package.
The best part of a custom ERP development service is that not only will every department have access to the best-in-class software but, it can also be grounded within the same system. Thus, information can flow freely between different modules connecting the organization.
Another great thing about the ERP module is that you can create a custom ERP solution. You can customize ERP systems according to your business needs.
So we have established the benefits of using an ERP system. However, it’s also crucial to mention that ERP implementation is expensive. There could be unforeseen costs that you didn’t have in your budget. Here is how to reduce the ERP implementation costs.
#1 Training Costs
Training costs are the most overlooked aspect of a document management system. Whenever custom ERP development services are chosen, it requires training for the staff to get acquainted with the process. However, estimating the training costs is difficult. Many ERP implementations fail because the organizations are not willing to invest the necessary time and energy to get the appropriate level of training to work on a new and complicated system.
Initially, it might seem like a good way of cost-cutting, but this will cost a lot for your company in the long run. The primary reason is, that due to lack of training, the custom ERP development service that you invested in, is not being used properly. Thus, you are not reaping the rewards that you should have from the ERP system. What this adds up to is, that investing in proper training for the use of an ERP system will eventually lead to higher cost savings and pay off your organization in the long run.
#2 Process Re-Engineering
A lot of businesses eliminate process re-engineering during the ERP implementation process. Evaluating your business and identifying the pain points is important during the ERP selection process. Most companies try to get the implementation completed within the shortest possible time and with the least possible changes.
Custom ERP development services come with a lot of best practices built into them. Thus, it’s important to re-think and revise the process to match the best practices. The better option is to use the in-built practices than pay to continue with the customized ERP system.
ERPs are excellent tools when they are used properly. It can save you a lot of time and money and help the entire organization, right from the back-office operations to the e-commerce activities – in running more effectively. However, to get the complete advantage of the custom ERP development, you shall need to incorporate it with a better process.
Take time to implement a newer and better process. Being a business owner, if you opt for the custom ERP software development services, you can hire an ERP consultant to help you. This can be costly. But once you and your staff learn about the software thoroughly, you will be rewarded in the long run. Also, your business will run smoothly in the long run.
#3 Employee Resistance to Change
Any system that affects a lot of areas of your organization, will also bring a lot of changes to your business. A custom ERP development solution brings changes throughout the work process of an organization and change is difficult for a lot of people to deal with. Some people within your organization will be excited while some others will not be able to cope with the changes.
It is important to get the key stakeholders in the company on board with the new system from the beginning. If you feel that the operations manager is crucial to the ERP software development solution process, get him/her involved with the system. In this way, instead of being someone who can delay and derail the implementation process, he/she becomes your ally, and they will help you get other people on board.
In a Nutshell
Even if you are a small or medium business organization, you can still opt for a world-class ERP system. Choose the custom ERP development service companies that use a process-by-process implementation method. It allows small manufacturers in getting the highest quality ERP solutions at an affordable price.
In this way, you won’t have to change all the business processes at once. You can tackle the most problematic areas and change only those processes. Thus, once you get a custom ERP solution, you improve the overall process. Also, when you choose the right custom ERP development services, it comes with an e-learning program guide through every step of the implementation process, right from the kick-off to going live.
You can tailor the ERP system accordingly. There are videos, e-learning modules, and virtual classes available for it. It helps you to eradicate the cost of expensive consultants and implement the ERP software on your own.