5 mistakes you don’t want to make when selecting an ERP system

ERP system is a tool that automates the business processes of an organization. It can help an organization improve its efficiency, productivity, accuracy, and profitability and gain a competitive edge in the market. However, selecting an ERP is a challenging task. It requires careful planning, research, and evaluation of various factors, such as the organization’s needs, goals, budget, and capabilities.

Today, we will share the most common mistakes you want to avoid when selecting an ERP. We will also show you how Robotic ERP is needed to avoid these pitfalls and achieve your desired outcomes with your ERP project. Read on to learn more.

If you are looking for a reliable and professional ERP provider in Dubai, consider Robotic ERP. It is a leading in Dubai that offers professional services and products, including Robotic LMS. We have more than ten years of experience in ERP service in Dubai and have completed hundreds of projects for clients across the UAE.

ERP System Definition

ERP system consists of multiple applications that work together in harmony. They enable managing and storing vital data related to different business functions. Enterprise resource planning is becoming a preferred solution for businesses of any size because it is a reliable and effective way of dealing with extensive data and operational issues.

ERP System Definition

Why Do You Need ERP?

ERP can help your organization improve its efficiency, productivity, accuracy, and profitability and gain a competitive edge in the market. ERP can also provide better visibility, analysis, and control of the data and processes across the organization.

  • Improved Decision Making

With ERP, you can access real-time and accurate information from various sources and departments, enabling you to make informed and timely decisions. You can also use analytics tools to generate insights and forecasts that can help you optimize your performance and strategy.

  • Increased Operational Efficiency

With ERP, you can automate your business processes, reducing manual errors, duplication, and delays. You can also integrate and synchronize your data and workflows across different systems and platforms, enhancing collaboration and communication among your teams and partners.

  • Enhanced Customer Satisfaction

With ERP, you can improve customer service and experience by providing faster and more reliable delivery, invoicing, support, and feedback. You can also personalize customer interactions and offers based on their preferences and behavior.

  • Reduced Costs and Risks

With ERP, you can lower operational costs by eliminating waste, redundancy, and inefficiency. You can also reduce risks by improving your compliance, security, and backup systems.

Selecting the Right ERP

Choosing the right ERP system for your organization can be a daunting task. It is a complex process, and requires careful planning, research, and evaluation of various factors, such as the organization’s needs, goals, budget, and capabilities.

Selecting the Right ERP

To help you with this process, we have compiled top tips for choosing the right ERP for your organization.

  • Define Your Goals

Before looking for an ERP software, define and document your business processes, pain points, and strengths. Potential software vendors should eventually use these processes and requirements to demonstrate their product’s capabilities within your business needs.

  1.  Involve Key Stakeholders

One of the common mistakes that many organizations make when selecting an ERP is not involving their key stakeholders and users in the process. Stakeholders are those directly or indirectly interested in the project’s outcome, such as executives, managers, employees, customers, suppliers, or regulators. Users, such as accountants, salespeople, warehouse workers, or service providers, will use the system daily.

It is essential to engage stakeholders and users early in the process to get their input and feedback on their needs and expectations. It can help you gain their support for the project and avoid resistance or dissatisfaction later. In addition, it also helps you ensure that the ERP meets their requirements and preferences and improves efficiency and satisfaction.

  • Evaluate Provider

A provider is a company that develops, sells, installs, and supports the ERP system. Selecting the right provider is crucial for the success of the project. It affects the quality, functionality, reliability, and security of the ERP. A wrong provider can cause delays, errors, conflicts, or failures in the project, resulting in wasted time, money, and resources. Therefore, finding a provider with the experience, expertise, reputation, and customer service that match your expectations and requirements is essential. You should check their credentials, such as license, insurance, bonding, references, and portfolio. You should also check their reputation, such as awards, certifications, reviews, and testimonials.

  • Compare Different Options

Once you have defined your goals and requirements and shortlisted some potential providers, you should compare their ERP options and features. Looking for an ERP software that meets your current and future needs and scales with your growth would be best. Also, it would help to look for a system with relevant and useful features and functionalities for your industry and sector.

Compare Different Options

Some of the standard features that you should consider are:

  • Accounting and Finance

This feature allows you to manage your financial transactions, such as invoicing, billing, payments, budgeting, reporting, and auditing.

  • Sales and Customer Service

This feature allows you to manage your sales cycle, such as lead generation, quotation, order processing, delivery, invoicing, and customer support.

  • Inventory Management

It lets you manage your inventory levels, such as purchasing, receiving, storing, picking, packing, shipping, and tracking.

  • Manufacturing

It allows you to manage your production processes, such as planning, scheduling, executing, monitoring, and controlling.

  • Service Delivery

This feature allows you to manage your service operations, including project management, resource allocation, time tracking, billing, and reporting.

  • Consider the Total Cost

Another factor you should consider when choosing an ERP system is the total cost of ownership (TCO) and return on investment (ROI). TCO is the sum of all the costs associated with acquiring, implementing, operating, and maintaining the ERP over its lifetime. ROI is the ratio of the benefits or savings the ERP generates over its costs.

Looking for an ERP with low TCO and a high ROI would be best. You should also be aware of the hidden costs that might increase the TCO or reduce the ROI of the system.

Some of these hidden costs are:

  • Hardware Upgrades

It would be best to upgrade your hardware devices or infrastructure to support the ERP software.

  • Software Maintenance

Pay for software updates or patches to keep the ERP up-to-date and secure.

  • Customization

You should pay to customize or modify the ERP to fit your specific needs or preferences.

  • Realistic Plan

After choosing an ERP and a provider, you should develop a realistic and comprehensive ERP implementation plan that outlines the steps, tasks, and activities required to install and launch the it in your organization. You should also include each stakeholder and user’s roles, responsibilities, and expectations in the plan.

Realistic Plan

Some of the critical components of an ERP implementation plan are:

  • Scope

It defines the objectives, deliverables, and boundaries of the project.

  • Schedule

It defines the timeline, milestones, and deadlines of the project.

  • Budget

It defines the costs, resources, and contingencies of the project.

  • Quality

It defines the project’s standards, criteria, and measures of success.

  • Risk

This component identifies and analyzes the potential risks or issues that might affect the project.

  • Change Management

Change management is one of many organizations’ biggest challenges when implementing an ERP system. Change management is managing the human side of change, such as attitudes, behaviors, and culture, affected by introducing a new system. It would be best to prepare for change management by developing and executing a change management strategy that addresses the following:

  • Communication

You should communicate clearly and consistently with your stakeholders and users about the ERP project’s purpose, benefits, and impacts. You should also listen to their feedback and concerns and address them promptly.

  • Training

You should train your staff to use the new system effectively and efficiently. You should also provide them with manuals, guides, or tutorials that they can refer to when needed.

Robotic ERP can help you with these challenges by conducting a thorough process review and analysis for ERP. We can help you identify your current and future business needs and goals, as well as the gaps and opportunities for improvement. Furthermore, we can help you prioritize and align your requirements with your budget and timeline. For more information, contact us at Robotic ERP.

Selecting ERP Mistakes

Selecting an ERP is a critical decision impacting your organization’s performance, efficiency, and profitability.

Selecting ERP Mistakes

To help you with this process, we have gathered ten common mistakes you want to avoid when selecting an ERP.

  1.  Relying Only on Brand

One of the mistakes that you want to avoid when choosing an ERP system is relying solely on brand recognition. While brand recognition can be a valuable indicator of quality, reputation, or popularity, it should not be the only factor influencing your decision. It does not guarantee that the system meets your needs or expectations. It also does not necessarily reflect the current state or performance of the system.

Solution

It would help to rely on something other than brand recognition when choosing an ERP software by researching and evaluating different ERP options and features. You should also look beyond the brand name and consider other aspects of the provider’s reputation, such as their experience, expertise, customer service, and testimonials.

  • Attaching to the Status Quo

The status quo is the existing state or condition of things. Getting too attached to the status quo means being resistant or reluctant to change or try something new. While it is natural to feel comfortable or familiar with what you already have or know, it can also limit your potential for improvement or innovation. It can prevent you from exploring new opportunities or solutions that might benefit your organization.

Solution

It would be best to stay open to the status quo when choosing an ERP by being open-minded and flexible about change. Moreover, it is helpful to learn new skills or adopt new processes to enhance efficiency or productivity. You should also be ready to face any challenges or difficulties when transitioning to a new system.

  • Generic of An RFI

Another mistake is starting with too generic of an RFI (request for information). An RFI is a document that asks potential providers for basic information about their products and services, such as features, functions, pricing, support, etc. It is usually helpful as a preliminary screening tool before issuing a more detailed RFP (request for proposal). However, your RFI needs to be more specific or specific. In that case, it might not elicit meaningful or relevant responses from the providers. It might also waste your time and resources by attracting too many unsuitable candidates.

Solution

It would be best to do not start with too generic of an RFI when choosing an ERP system by making your RFI more specific and tailored to your business needs and goals. You should also include some criteria or requirements that are essential or desirable for your organization, such as industry standards, compliance regulations, integration capabilities, customization options, etc. You should also limit the number of questions or topics in your RFI to ensure the providers are precise.

  • Unclear Evaluation Criteria

Evaluation criteria are the standards or measures you use to compare and assess different ERP options and features. Having clear evaluation criteria can make the selection process more accessible and more objective. It can also lead to consistent or inaccurate results and clarity or disagreement among your stakeholders and users.

Unclear Evaluation Criteria

Solution

It is helpful to avoid unclear evaluation criteria when choosing an ERP software by establishing and documenting your evaluation criteria before you start the selection process. You should also ensure that your evaluation criteria are relevant, realistic, measurable, and weighted according to your priorities. Also, involve your stakeholders and users in defining and agreeing on the evaluation criteria and applying and reviewing them during the selection process.

  • Too Much Consensus

The last mistake you want to avoid when choosing an ERP is seeking too much consensus. Consensus is the general agreement or harmony among a group of people. While consensus can be a desirable outcome of a collaborative decision-making process, it can also be a hindrance or a trap if you look for it too much. Looking for too much consensus can cause you to compromise or sacrifice your needs or goals to please everyone. It can also cause you to delay or avoid deciding due to fear of conflict or rejection.

Solution

Avoid looking for too much consensus by being transparent and confident about your needs and goals, as well as your decision-making authority and responsibility. You should also respect and appreciate the diversity of opinions and perspectives among your stakeholders and users, not letting them override or influence your judgment. In addition, you should communicate and explain your decision clearly and convincingly to your stakeholders and users and address any concerns or objections they might have.

Avoiding Common Pitfalls in ERP System Implementation

Consider implementing an ERP if you want to streamline your core business processes.

Avoiding Common Pitfalls in ERP System Implementation

This guide will cover two significant ERP implementation stages. By following this guide, you can ensure that your ERP implementation meets your business goals, minimizes the risk of delays and cost overruns, and enables employees to use the system effectively.

  1. Defining ERP Implementation Requirements

The first stage of ERP implementation is defining your requirements. This stage involves analyzing your current business processes and determining what you want to achieve with the ERP. You should also document your business requirements, such as the features, functions, and capabilities you need from the ERP.

Defining your requirements is crucial for selecting the right ERP and provider for your organization. It can also help you set realistic expectations and priorities for your ERP project.

Some of the best practices for defining your requirements are:

  • Involving Users

Involve your key stakeholders and users in the process. They are the ones who know your business processes best and who will use the ERP system daily. They can provide valuable input and feedback on their needs and expectations.

  • Analyze

Conduct an analysis to identify the gaps between your current and desired state. A gap analysis can help you pinpoint the areas where you need improvement or innovation.

  • Prioritize

Prioritize your requirements. You should categorize your requirements into must-haves, nice-to-haves, and optional. It can help you focus on the critical features that will bring the most profit to your organization.

  • Align Needs

Align your requirements with your budget and timeline. It would be best to clearly understand how much you can afford to spend on your ERP project and how long you can wait. You should also consider the total cost of ownership (TCO) and return on investment (ROI) of the ERP system.

  1. Selecting ERP and Provider

The second stage of ERP implementation is selecting an ERP and provider. This stage involves comparing and evaluating different ERP options and features that meet your requirements and expectations.

Selecting an ERP and provider is critical for the success of your ERP project. It can affect the quality, functionality, reliability, and security of the system. It can also affect the implementation process’s speed, efficiency, and effectiveness.

Some of the best practices for selecting an ERP and provider are:

  • Structured Evaluation

You should use a scoring or ranking system to rate each option or feature based on how well it meets your requirements and expectations. Using a weighted average or matrix to calculate each option or feature’s overall score or rank based on their importance or priority would be best.

  • Request Demo

Request demos or trials of the systems that interest you. You should see how the systems work in real scenarios and situations relevant to your business. You should also test the usability and performance of the systems using realistic data and workflows.

  • Check Credentials

Check the credentials of the providers that interest you. You should verify their license, insurance, bonding, references, portfolio, awards, certifications, reviews, testimonials, etc. You should also contact their previous or existing clients for feedback and opinions on their products and services.

  • Negotiate

Negotiate the contract terms and conditions with the provider that you choose. You should review the contract to ensure it covers all aspects of the project scope, deliverables, timeline, budget, payment terms, warranty terms, support terms, etc. Clarify any questions or doubts you might have before signing the contract.

The Top Errors to Avoid in ERP System Implementation

Many organizations make common mistakes that can jeopardize or delay their ERP project, wasting time, money, and resources.

The Top Errors to Avoid in ERP System Implementation

We have gathered a list of five mistakes to avoid when implementing an ERP system.

  • Insufficient Planning

One of the businesses’ most critical mistakes is jumping into an ERP project without sufficient planning and preparation. Planning and preparation involve defining your business goals and objectives, analyzing your current processes and pain points, identifying your requirements and expectations, selecting the right ERP and provider, developing a realistic budget and timeline, and assigning roles and responsibilities to your project team.

It can lead to better decision-making, realistic expectations, scope creep, cost effectiveness, and success of your ERP project.

To avoid this mistake, you should invest enough time and resources in planning and preparing for your ERP project. You should also seek help from experts or consultants who can guide you through the process and provide best practices and recommendations.

  1.  Lack of User Involvement

Another common mistake businesses make is neglecting user involvement and training in their ERP project. User involvement and training involve engaging and educating your end-users who use the system daily, such as accountants, salespeople, warehouse workers, or service providers.

Lack of user involvement and training can result in low user adoption, resistance, or dissatisfaction with the new system. It can also affect the data and processes’ quality, accuracy, and efficiency of the system.

You should involve and train your end-users early and throughout the ERP project to avoid this mistake. You should also provide them with manuals, guides, or tutorials that they can refer to when needed. In addition, you should solicit their feedback and suggestions on improving the new ERP software.

  1.  Customization Overload

Customization is modifying or adapting the ERP system to fit your needs or preferences. While it can be beneficial or necessary in some cases, it can also be costly, risky, or counterproductive in others. On the other hand, it can increase the complexity, maintenance, and support of the system. In contrast, it can also reduce the compatibility, integration, and scalability of the system. It can also affect the system’s performance, functionality, and security.

To avoid this mistake, you should limit the customization of your ERP to the minimum or essential level. You should also evaluate the costs and benefits of each customization before you decide to implement it. In addition, you should also follow the best practices and standards of the ERP provider or industry when customizing your ERP.

  • Inadequate Data Migration & Testing

Data migration is transferring your existing data from your old systems or sources to your new system. Testing verifies that your new system works as expected and meets your requirements and specifications. Inadequate data migration and testing can cause data loss, corruption, or inconsistency in your new system.

To avoid this mistake, you should plan and execute your data migration and testing carefully and thoroughly. Furthermore, you should back up your data before you migrate it to your new system. You should also conduct various tests to ensure your new system is error-free and reliable.

  1.   Neglecting Change Management

The last mistake you want to avoid when implementing an ERP system is neglecting change management. Change management is managing the human side of change, such as attitudes, behaviors, and culture that are affected by introducing a new system.

Neglecting change management can result in low user adoption, resistance, or dissatisfaction with the new system. It can also affect the data and processes’ quality, accuracy, and efficiency of the new ERP.

To avoid this mistake, you should prepare for change management by developing and executing a change management strategy that addresses the following:

  • Support

Support your staff during and after transitioning to the new system. You should provide them with technical support or assistance from the provider or a third party. You should also provide them emotional support or encouragement to cope with the change.

Robo2tic ERP can help you with these mistakes. We can help you develop and execute a change management strategy that suits your organization’s needs and goals. In addition, we can help you communicate and collaborate with your stakeholders and users, and train your staff using the new system.

Robotic ERP: Best Provider

Robotic ERP is a ERP provider in Dubai that offers customized solutions for many  sectors. We can help you with every step of your ERP project, from planning and preparation to implementation and optimization. In addition, we can also provide you with support and guidance throughout the process, as well as maintenance after the completion of the project.

Robotic ERP: Best Provider

Why Robotic ERP?

We have over ten years of experience in ERP servicing Dubai and have completed hundreds of projects for clients across the UAE.

We offer flexible and affordable solutions that suit your budget and needs. We also offer cloud-based or on-premise deployment options and low-code customization options.

We have a team of experts and consultants who can provide unbiased and objective information and advice on different ERP options and features. We can also provide demos or trials of our products and services.

We have a customer-centric approach that focuses on your satisfaction and success. We will listen to your needs and expectations and deliver solutions that meet or exceed them.

If you are looking for ERP software in Dubai, look no further than Robotic ERP. Visit our website today to learn more about our services and products.

The Future of ERP system

What does the future of ERP look like? How will emerging technologies like AI, IoT, and blockchain transform your business?

The Future of ERP system

In this part, we will explore how these three technologies will impact the future of ERP and how you can leverage them to enhance your business performance and value.

  • Artificial Intelligence (AI)

AI is the technology that enables machines to do tasks that usually require human intelligence, such as learning, reasoning, decision-making, and problem-solving.

It can enhance ERP in many ways, such as:

  • Improving customer service and experience by providing personalized interactions and offers based on customer preferences and behavior, increasing customer loyalty and retention.
  • Enhancing security and compliance by detecting and preventing fraud, errors, or breaches using advanced algorithms and techniques.
  • Internet of Things (IoT)

IoT is the technology that connects physical devices, such as sensors, cameras, machines, vehicles, etc., to the internet. It enables them to collect and exchange data.

It can enhance ERP in many ways, such as:

  • Improving operational efficiency by monitoring and controlling your assets and processes in real-time using data from IoT devices, reducing waste, downtime, or errors.
  • Increasing product quality and customer satisfaction by tracking and tracing your products throughout their lifecycle using IoT devices, ensuring their safety, reliability, and performance.
  • Enabling new business models and opportunities by creating intelligent products and services that leverage IoT data and functionality, such as predictive maintenance, remote assistance, or pay-per-use.

 

  • Blockchain

Blockchain is the technology that enables a distributed ledger or database that records transactions or data in a secure, transparent, and immutable way.

It can enhance ERP in many ways, such as:

  • Increasing trust and collaboration among your partners and customers by verifying and validating your products and services’ identity, authenticity, and quality using blockchain records.
  • Reducing costs and risks by automating and enforcing smart contracts that execute based on predefined rules or conditions using blockchain records.

Optimize and Maintain ERP

Imagine you invest in ERP system. Are you getting the most out of it? Are you keeping it up-to-date and secure? If not, you might miss out on some benefits and advantages an ERP can offer.

How to Optimize ERP?

Optimizing your ERP means ensuring it runs smoothly and effectively, meeting your current and future business needs and goals. It can help you improve your operational performance, reduce costs, increase customer satisfaction, and enable innovation. Some of the ways to optimize your system are:

How to Optimize ERP?

  • Update Processes

Review and update your business processes regularly. Evaluate your business processes periodically and identify gaps, inefficiencies, or redundancies that might affect your ERP. You should also align your business processes with your strategic objectives and industry best practices.

  • Validate

Clean and validate your data regularly. Ensure your data is accurate, complete, consistent, and relevant for your ERP software. You should also eliminate duplicate, outdated, or erroneous data that might affect it.

  • Upgrade ERP

Upgrade and update your system regularly. You should update it with the provider’s latest features, functions, patches, and security updates. You should also upgrade your system when necessary to take advantage of new technologies or capabilities that might benefit your business.

  • Customize

Customize and integrate your ERP wisely. Customizing or integrating only when necessary or beneficial for your business would be best. You should also follow the provider’s or industry’s best practices and standards when customizing or integrating your ERP software.

How to Maintain ERP?

Maintaining your ERP means ensuring it is safe from any threats or risks that might compromise its functionality, performance, or security. It can help prevent errors, bugs, or glitches that affect your system.

Some of the ways to maintain your ERP are:

  • Backup

Implement a backup and recovery plan. You should back up your data and store it in a safe location. It would help if you also had a recovery plan in case of any disaster or emergency that might affect your ERP software.

  • Security Strategy

Implement a security policy and strategy. You should define and enforce a security policy and strategy for your ERP that covers access control, encryption, authentication, authorization, auditing, monitoring, etc.

  • Monitor

Implement a testing and monitoring plan. You should regularly test and monitor your ERP to ensure it works as expected and meets your requirements and specifications. You should also identify and resolve any issues or challenges arising from your ERP.

Conclusion

We have come to the end of this journey. In this blog post, we have discussed five common mistakes you want to avoid when selecting an ERP system for your organization. Furthermore, we offered some valuable tips to avoid mistakes.

We hope you learned something new today. Please share your comments with us below.

Are you looking for an ERP to help you automate your business processes? If yes, schedule a demo of our ERP software in Dubai today.

Robotic ERP is a professional and reliable ERP provider in Dubai that offers innovative solutions for various industries, such as Robotic F&B. Our ERP software is perfect to meet your specific needs and goals and scale with your growth. It has features and functionalities that are relevant and useful for your industry and sector.

Contact us at Robotic ERP today to get consultation.

FAQ

What are the benefits of ERP?

ERP can help an organization improve its efficiency, productivity, accuracy, and profitability and gain a competitive edge in the market. ERP can also provide better visibility, analysis, and control of the data and processes across the organization.

What are the features of ERP?

ERP typically consists of different modules or applications focusing on specific business areas or functions, such as finance, sales, inventory, manufacturing, service delivery, etc. Each module can communicate and share data with other modules using a common database and user interface.

How long does it take to implement an ERP system?

The duration of an ERP implementation project depends on various factors, such as the size and complexity of the organization, the scope and functionality of the system, etc. Generally speaking, an ERP implementation project can take anywhere from a few months to a few years.

How much does it cost to implement an ERP system?

The cost of an ERP implementation project depends on various factors, such as the type and number of modules or applications included in the ERP, the number of users or licenses required, etc.

 

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