You need to invest in ERP systems to maximize life and return on investment

You add a feather to the crown by successfully implementing a state-of-the-art ERP system in the organization. The system implementation gets over after one or two mock drills, the sweets get distributed, and the people who worked relentlessly for it get rewarded. Do you think that everything is over? Not at all! Rather it is the beginning of a never-ending journey of ERP experience.
You are quite complacent about the decision of buying the best ERP solution after a long research and multiple rounds of discussions, debates, and hot talks. Yes, there is no doubt that you have the best brand, and the ERP vendor is the best in the town. However, please remember that it is a long-term relationship and not just a discrete transaction.

Keep aside a corpus once you invested in an ERP system

Once the preliminary rounds of software selection process get over, you sign a license agreement, and the software gets deployed. Your systems get migrated to the ERP system and one fine day you get rid of multiple legacy systems and start using an integrated ERP system. Then starts the maintenance mode where you pay annual fees for keeping it up and running efficiently. It again involves the cost, but you do not have any escape from it.

After a few years, the old system gets outdated. You do not get support for it. The systems and processes in the business also change meanwhile, and there are so many workarounds and ad-hoc arrangements to accommodate them in the existing ERP system. It is the indication that you need either an upgraded version of the same software or new software at all. Mind it; both options are cost-centric. Upgrade or new procurement of ERP system demands deep pockets and the only way to safeguard business from getting a hit to the bottom lines is using the money you provisioned for the upgrade.

Don’t suspend ERP design and improvement if you want cost-effectiveness

Are you one of the short-sighted business owners who stop the idea of investing for enhancement of ERP design as soon as the implementation is over? If yes, then correct the mistake as quick as you can. ERP is a perpetual process where evolvement in the system takes place with the evolvement of your business. To maximize the ROI, you need to spend for the upgrade, customization, and redesign of the business processes. You need to invest in system reconfiguration as well.

Keep the communication channels open

Keep the discussion channels with the ERP software vendor always on. Get acquainted with the latest modules, versions and third-party integrations to the system. It helps in identifying some useful things that may be helpful in your organization. Talk to the peers and ERP vendors, attend conferences and seminar about ERP and do not leave a single chance of knowing about it. You get deep insights into the system.

You need to invest for skill development

Yes, it is another critical aspect. Once you train people in the organization about the version running in the company, the employee churn will force you to keep the investments on. People will leave the company, and you will need the replacement.

Since ERP training is not inexpensive, HR experts suggest that keeping employee churn to the minimum levels is a good idea. Nevertheless, there are several uncontrollable factors govern it. Hence, it is quite difficult.

Hire skilled ERP professionals at high rates or hire unskilled people and invest in training; the choice is yours. In any case, you need investment. Without trained workforce, forget about reaping the maximum benefits of the ERP system.

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