3 Essential ERP Implementation Best Practices for 2019
The new year will bring additional changes to your business processes. Some of those changes may involve ERP implementation. Here are three ERP implementation best practices your business will want to adopt.
1. Implementing Two-Tier Digital Transformation
With the increasing focus on digital transformation, two-tier ERP implementation approaches will be more popular. Because one software solution or vendor cannot deliver the necessary innovative capabilities, more businesses will benefit from multiple systems for various functions. A larger system will be run at the corporate level and smaller system at the plant, division or subsidiary level. For example, a parent company may implement SAP S/4HANA, Oracle Cloud ERP or other standardized back-office system while divisions may implement more customer-facing systems aligned with their culture and needs. The business can enhance global operations, respond to location or region-specific business needs, maintain an existing legacy ERP system, and provide business units the ability to use ERP systems. Implementing two-tier ERP solutions will result in reduced costs, increased efficiency, comprehensive business functionality, easily configurable performance and improved employee performance.
2. Adopting Cloud ERP
More businesses will be moving from on-premise ERP to cloud-based ERP. Software vendors and the ERP industry are investing significant funds in their SaaS products and services in anticipation of more global implementation. Users may access software applications that run on shared computing resources such as processing power, memory and disk storage through the internet. The resources will be maintained in remote data centers dedicated to hosting different applications on a variety of platforms. Since computer resources are leased monthly rather than purchased and maintained on premises, and a company can quickly scale its business productivity software as the company grows, there will be lower upfront costs.
3. Holding ERP System Integrators Accountable for Results
Intentionally or not, many integrators have been rigging clients’ digital transformations. Because a system implementation requires changes in various business processes, an overhaul of data management and reporting functionality, and a significant change management effort, companies face additional costs and time constraints when ERP implementation fails. Additional consulting help is needed to ensure ERP go-live is on time, the project is on budget, business needs are met, and the team is properly trained and supported. Due to the high number of ERP implementation failures, more companies will use independent third parties to manage the integrators and hold them accountable.
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