Most enterprises today, especially larger companies, rely on ERP systems for support in enhancing various business processes. Owners of well-established brands are well-aware of what is an ERP system and its functions. But if you are practically new to this technology, here is a short introduction to help you understand the core of this software.
ERP or Enterprise Resource Planning is pre-packaged computer software that integrates different business units into a single database. Because of this, the software helps you administer essential business processes, including employee administration, sales, manufacturing, and many more.
This system is not restricted to executives. All employees and staff from different units can access the database. This feature of the ERP system allows everyone in the enterprise to work cohesively. Moreover, it enhances their communication and supports the easier and faster exchange of data.
ERP System Failure, Who is to Blame?
Indeed, an ERP system is a powerful business tool. It could help a small organization or an enterprise reach success and impressive growth. Unfortunately, not all ERP systems succeed. According to surveys, almost half of the ERP system projects fail.
There is nothing wrong with the system’s program. The problem is the implementation of an ERP system.
Several factors affect ERP system implementation and influence its failure. The most common causes for ERP failure are the following:
- Failure to determine clear goals
- Failure to create clear project outlines
- Failure to define business processes
- Lack of support from the executives
- Reluctance to deviate from traditional and obsolete processes
Many companies that failed in implementing a strong ERP system tried to address the above issues. Unfortunately, some still are unable to achieve their goals. They tend to skip one crucial factor that is assembling an effective and functional ERP team.
Why is ERP Team Important?
The ERP team is composed of individuals who are knowledgeable and proficient about the system. These are the people who know the ins and outs of the program, and capable of mitigating problems by forming effective contingency plans.
The ERP team serves as the system’s backbone. Their role is to run the program effectively and minimize failures as much as possible. Without a functional ERP team, the system has no future.
An ERP team needs a good project manager. That person must possess knowledge about all the departments that are under this program. Moreover, a good project manager has exceptional organizational skills and values teamwork.
The team won’t function without capable members despite having an excellent project manager. If you are planning to implement this program, make sure to pick out individuals with useful skills for the team.
Building a great ERP team is only one factor to help you succeed in implementing an ERP system. The core implementing team will also need guidance from the oversight committee composed of the decision-makers or executives of the enterprise. Their role is to steer the team in the right direction.
Implementing an ERP system is not enough to help your business reach success. You have to learn how to implement it effectively and understand how it works. Thus, make sure to ask assistance from professionals and experts, and educate yourself about it before diving into this system.