3 Common ERP Implementation Risk Factors and How to Avoid Them
Manufacturers who are looking to upgrade or install new ERP solutions may experience several risk factors. However, companies who have the foresight to assess potential challenges and develop strategies to address them are more likely to be successful. Here are some of the common risks you may encounter when implementing ERP software and how to avoid them.
Risk Factor #1: The Wrong ERP Software
There are countless ERP solutions on the market, but only certain ones are appropriate for your business. The wrong one may not fit your objectives, scale with your business or have the right features for your specific industry.
Solution: To prevent this from happening, you should first analyze what your manufacturing business needs and identify how an ERP solution can benefit your company's processes and operations. Next, create clear and realistic goals that you want to accomplish using the ERP software. After you've established goals and have a deeper understanding of your specific needs, spend time researching multiple ERP systems to determine which ones are right for the company.
Risk Factor #2: Users Don't Embrace the Software
Not everyone likes change, so employees and other users may get frustrated when the company implements new ERP software. Their frustration can escalate if there is downtime or interruption in their normal day-to-day work activities or they don't fully understand the benefits of using ERP solutions.
Solution: There are several solutions for this risk factor. First, get feedback from users before, during and after the implementation process. When they recognize that they have a voice in the process they may be more cooperative. You can also prepare sufficient training for every user so they'll be prepared when it's installed.
Risk Factor #3: Security and Privacy Issues
ERP software is integrated with many different departments (like accounting and customer data) that handle sensitive data. A vulnerable ERP software is a serious risk to your organization's private proprietary information.
Solution: Buy your ERP software from an established vendor and find out how they plan to prevent potential security threats so you can be confident your manufacturing business will remain protected.
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