ERP Implementation Challanges

The very thought of implementing ERP disturbs organisation owners as so many uncertainties are involved. Absolute clarity about all the challenging issues is very important. Let us understand these with possible solutions.

1. What kind of changes will ERP bring?

Some of the immediate changes due to ERP are:

  • Different Data Entry screens: Your staff will have to use entry screens with different looks and new features and lot of checks.
  • New Data Entry screens: Many newer transactions needs to be captured, which till date were manual. For example, Material request, Indent, PO, etc.
  • Checks and controls: With ERP, capturing most of the transactions will be rule based, thus allowing you with controlled delegation as well as accurate data for reporting and MIS. For example, authorisation of Purchase Orders by different officers and that too subject to based on value of PO.
  • Most of daily operational reports and MIS reports can be generated from ERP own it’s own

As your ERP Vendor and consultant, we help you define and implement the policies most suitable and beneficial to your business and make your organisation system / process dependent rather than person dependent.

2. How to over come Staff Resistance to ERP?
  • Resistance by users of existing software: Many staff will initially resist to adapting to different entry screens and overall design of ERP
  • Resistance by new users: Staff who were doing their work totally manually till now, may not be willing to start using ERP

As your ERP Vendor and consultant, we interact with each of such persons and suggest remedies which are person specific, depending on their skill set, seniority and indispensability.

3. How will you manage the IT Infrastructure?

ERP will require the following IT Infrastructure:

  • Database server with specified operating system and database software
  • Reliable internet connectivity
  • Additional desktops / laptops
  • Printers (as many new transactions will get captured in ERP, more document printing will be required)
  • Scanners (to scan and attach key documents in ERP, like copies of Purchase Invoices, etc.)

*Installing the server in-house* will require setting up at least two alternative internet connectivity, 24×7 Power supply and an IT engineer to manage your network & server.

As your ERP Vendor and consultant, we strongly recommend you to host your ERP on cloud which will bring the following benefits:

  • Fast availability of server for ERP Implementation (process indent / quotation / PO & negotiation is considerably reduced). Delay and procuring server will surely delay ERP Implementation. The Data Centre will provide all licenced software
  • Almost no capital expenditure for IT Hardware
  • No monthly cost of maintaining in-house server – Direct saving
  • No monthly salary of IT Engineer – Direct saving

4. I don’t know all I expect from ERP and will take time to find them out?
  • Defining requirements of the top management as well as other stakeholders from various departments is the most critical aspect of implementing ERP
  • Invest in interactive discussions with staff of all departments to identify the ERP requirements of your organisation. List them as this is the basis of implementing ERP
  • This exercise will help you make a good estimate of the manpower, training and time required for implementing ERP.

As your ERP Vendor and consultant, with our rich experience we make sure to obtain the broad requirements of all the stake holders and no critical functionality is left out. Specific requirements are taken care of during the implementation and training process.

5. Will I be able to timely Implement ERP without disturbing my business?

As mentioned earlier, identifying your ERP requirements is the key. Now follow the below process:

  • For each of your requirements, assign a staff who will be responsible for implementing
  • Do a trial run (additional manpower may be required)
  • Get all the Operational, MIS and Compliance reports checked
  • Identify and make a list of changes required in ERP
  • Test all the changes done in the ERP by the staff responsible

As your ERP Vendor and consultant, we help you with the above with precise results. We provide manpower appropriate skill sets, not just functional & technical, but also with change management skills.

6. What are the steps involved to Go-Live?
  • Decide a cut-off date
  • Prepare for one or two months’ trial run
  • Prepare data migration plan – as your ERP Vendor and consultant, we will guide with our rich experience
  • Go Live (use of existing software will be discontinued)
  • Monitor closely and immediately iron out issues, if any

As your ERP Vendor and consultant, our data migration skills comes very handy to meet deadlines as well making this process risk-proof.

7. Will I be requiring fresh manpower?

New manpower may be required as many non-accounting and non-stock related activities are done manually. Below process to be followed:

  • For all ERP activities, map and identify existing staff and arrange their training
  • Recruit new staff, if required
  • Alternatively, decide to outsource certain ERP activities right from beginning of implementation

As your ERP Vendor and consultant, we make sure that your key staff appreciate the benefits of well implemented ERP are comfortable with its working.

8. What are various Costs involved in implementing ERP
  • ERP Servers (database and remote access)
  • Software licensing cost for above servers
  • Internet connectivity
  • Additional Computers, Laser Printers & Scanners
  • ERP licensing cost
  • ERP implementation cost

An alternative to ERP Servers is to use cloud IT Infrastructure of purchasing own. CORALerp is also available monthly rental, if hosted on cloud.

Well begun is half done! A good kick-off at the requirement gathering stage will set everybody’s expectations from ERP realistic and also helps in achieving the implementation mile-stones timely and with complete satisfaction.

Lastly, it is important to realise that ERP is not just a piece of software. It brings cultural changes in the
organisation.