Enterprise Resource Planning (ERP) software is an essential asset for any manufacturing and distributing business. Without an ERP, projects and data can be lost between departments, and processes are more likely to have errors and delays. When installing a new ERP system, the project can easily go over budget. Here are some tips to help to stay within budget when installing an ERP.
Work with a project manager who can assist with the budget and implementation
Software projects are notorious for budget blowouts and extending beyond the original deadline. Without specialist advice, companies who choose the DIY route, often miss critical steps in ERP implementation, when developing their project timeline.
Some questions to ask of your business include:
Do you have a change management strategy?
How will you transfer your current data?
How will you perform tests before going live?
What are your network costs?
Does your business require any new hardware?
Which staff will work on the project and how does this effect their usual workload?
When questions like these are not addressed before the ERP installation project gets underway, your business could face total disruption and more expenses further into the project. Working through as many details as possible in the beginning, will help mitigate costly changes and confusion in the future.
After assessing your businesses capabilities, if you find your staff do not have the time or skills to manage an ERP installation, it is best to seek the help from a specialist advisor who can offer ongoing support and training once your ERP is up and running.
Avoid Unnecessary Add-Ons
Sometimes businesses get caught up in all the options and add-ons to enhance their ERP software and lose sight of their business needs. In the beginning, it’s likely that you don’t need every software module available. Instead, focus on your most immediate requirements. Once you’ve rolled out the most critical ERP functions, you can then start thinking about additional features. A specialist advisor can help ascertain what are your initial business needs.
One the advantages of using a cloud ERP, is the ability to modify your system post go-live, which means less disruptions to your production. Furthermore, with a cloud-based ERP, future upgrades and integrations are more cost effective than onsite system upgrades.
Focus on ROI
Even if you are the most budget-conscious business operator, sometimes in the long run, you might end up paying a higher price for your ERP implementation. Businesses that are inclined to trying to save money with a quick fix or patch job upgrading their ERP often experience problems and miss out on greater ROI.
You might end up deciding to use low cost system, only to find your business paying more to fix critical errors. Cheaper software often lacks the flexibility and functionality of established vendors, such as MYOB. You should carefully select the ERP that will give you the best return on investment rather than solely focusing on the initial cost.
The riskiest move of all is undergoing ERP implementations without seeking consultation. A consultant’s expertise will ultimately help you achieve greater ROI. Their knowledge of business solutions and best practices is that will transform your business.
Consultants will guide you through your ERP software, from selection and implementation to staff training and ongoing maintenance and upgrades. Ignoring best practices might help lower upfront costs, but if you want to maximise the value of your ERP and mitigate risk, ensure your ERP project strategy is focused on generating long-term ROI.
How can Acacia help?
Implementing an ERP doesn’t have to be a costly budget blow out. At Acacia, we are MYOB Advanced Platinum Partners with over 30 years of experience in providing ERP, CRM and integrated solutions to businesses across Australia. We help businesses optimise, automate and improve the traceability. Acacia has the knowledge and experience across a range of businesses to provide the most cost-effective solution for your business.
If you are interested in talking through the advantages of moving to a cloud-based ERP, please contact us to find out more.
