Cloud-based computing, commonly known as Software as a Service or SaaS, let every user access various software applications that operate on shared computing devices via the internet, such as disk storage, memory, and processing power. These computing resources are kept in a remote data center intended to hosting several applications on distinct platforms.
On the other hand, Cloud ERP is a SaaS that lets users access ERP or Enterprise Resource Planning software over the web. This software gives organizations access to their enterprise-critical applications, anytime and anywhere they are.
Technically, the only difference between on-premises and Cloud ERP is the location of the software. Whether you have a small, medium, or large-scale business, you should recognize the different benefits of cloud ERP, namely:
- Avoids upfront charges for all computing infrastructure like data servers and hardware
- Lessens IT support services because it is already given by the data center
- Rejects paying licenses for upfront application software
- Shrinks the charges of supporting and maintaining those applications since the cloud merchant manages the upgrades and updates
An ERP can help in facilitating better communication between the different units and more. However, this only works if the system is properly implemented. As a guide, here are some of the cloud ERP implementation statistics to know the real significance of learning from common mistakes:
- ERP can cut administration and operation costs by over 20%
- 74% of ERP ventures take longer than projected
- 64% of ERP ventures go above the given budget
- 95% of companies boost aspects of their processes through an effective ERP implementation
Cloud ERP implementations can bring massive and sudden changes in business operations. Therefore, doing things as perfectly as possible is quite critical. Issue avoidance and accurate planning can cut costs and lessen the timeline of implementation.
To give you some hints, here are the top 3 cloud ERP implementation mistakes to avoid, namely:
Mistake No. 1: Failure to Plan and Define Goals
Cloud ERP implementation cannot be done with just a single click of your fingers. Its implementation needs to be outfitted to your explicit company. Making a detailed map to jot down your goals for the implementation of cloud ERP is extremely critical. An effective and well-planned roadmap will guarantee that you will acquire the solutions suitable for your company’s needs. Also, you can easily discharge impending distractions, as no more distractions will occur.
A detailed plan also helps the members of the implementation team. They will function as a productive and cooperative team throughout the project process. In addition, a firm roadmap will assist you in breaking down the implementation into the quality and attainable actions. This scheme also guarantees that you have created the right team at the right place. Therefore, everyone is connected and willing to work altogether. Obviously, creating a plan that is new to you is quite a tricky task. This is the reason why you need a professional consultant.
Mistake No. 2: Insufficient Commitment
One of the top 3 cloud ERP implementation mistakes to avoid is insufficient commitment. ERP implementation can boost your business, streamline procedures and eventually achieve your goals. But, it involves a complex procedure. It is also a certain process that requires from six months to two years. Preferably, plan for at least one year to implement and then map out the curves. If you are not ready to engage in this process, then you either need an expert who can facilitate or speed up the process. Or, it is best not to move forward until you are ready to commit a year to the process.
Apart from the time commitment, you also need to guarantee that you have an ideal team in place which is proven dedicated to finishing the process. As mentioned a while ago, the right team working on the implementation of your cloud ERP is critical, and therefore, you need to choose the best one carefully.
Mistake No. 3: Unable to Find the Right Leader/ Lack of Expertise
It is highly noticeable that the team involved and knowledge of the team play a vital role in the process. With insufficient concrete knowledge about cloud ERP systems, your implementation is at a momentous drawback. Since every member of the team has to undergo their ERP implementation, they should be tactical. It means that your chosen project manager must have a strong attention to detail. He or she must also know how to guide others because his or her actions have great effects to the team.
Obviously, you need an ideal person to lead the cloud ERP implementation. What do you mean by this? It means that this person knows how to manage the project. As a team leader, he also knows how to build solid relationships with various units. Above all, he must possess superior organizational skills to manage the team.
There are more considerations apart from the top 3 cloud ERP implementation mistakes to avoid. Another is on how you address the fear of change. This can also be a major mistake by most companies out there. Bear in mind that as business owners, you need to know how to adapt to changes and, therefore, should not be afraid of change. Be strong enough to face the consequences or results of your actions. Not scheduling for post-launch maintenance must also be avoided. As advised, you have to create a plan in the first stage for its improvement and post-launch maintenance. Just assign teams to collate data on how the teams utilize the software, how to improve it, its possible issues, and the like.
As business owners, learning about cloud ERP systems should be your top priority. Use this checklist to prevent any unwanted expenses and mistakes as you process your ERP implementation and selection. Take note that when business software is implemented and used correctly, people truly recognize their possible functions and capabilities. Business software also improves the productivity level of your business and provides a strong or firm data reporting structure.
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