Is Your ERP System Falling Short? Explore Your Options

Are you feeling frustrated with your current system that doesn’t quite meet your needs? Are you constantly doing manual reconciliations or resorting to Excel for your accounting tasks?

It’s understandable that the idea of exploring other systems may arise, and once that decision-making process begins, it can be challenging to halt the momentum.

However, it’s essential to consider that the grass is not always greener on the other side.

How Has ERP Implementation Affected Businesses?

As a business owner, you will understand the impact that implementing any new system can have on your business. What you may not know, is the ramifications implementing a new Unit4 ERP system without proper management and consultants.

Time and time again, we have witnessed colossal ERP disasters that have had far-reaching consequences. Take, for example, the case of Lidl, who had to abandon their project after investing nearly €500 million.

In another instance, cosmetic giant Revlon experienced significant challenges following a merger with Elizabeth Arden. This merger left them unable to ship $64 million in net sales due to ERP system issues. More recently, Birmingham City Council faced its own ERP implementation woes.

When considering the implementation of a new ERP system (or any system, for that matter), it is crucial to conduct a comprehensive return on investment (ROI) projection. This projection allows you to assess whether adopting the new system is indeed the best option for your business.

It is important to note that the cost per user of an ERP system can range from $8,571 to $11,000, as reported in a 2022 ERP study. The specific cost will depend on factors such as the size of your company. This cost per user highlights the financial investment required to implement an ERP system.

Implementation Of ERP Systems Can Reduce Time To Decision By 36%

Are you a business owner who finds that you or your team are spending endless hours manually reconciling data and relying on Excel spreadsheets to manage your accounting tasks?

It can be incredibly time-consuming and error-prone, not to mention frustrating, especially when it comes to making crucial decisions on a deadline.

One of the key benefits of implementing a new ERP system is the ability to automate manual tasks. Manual data entry, reconciliations, and reporting can be time-consuming and prone to errors.

In fact, 95% of businesses have improved their processes after implementing an ERP system. Therefore reducing the time spent analysing data before making a decision.

Undoubtedly, this will resonate well with any business owners who are currently wishing to streamline workflows and heighten productivity in the workplace.

Is Project Management Necessary?

It is important to remember that once the decision has been made to implement the new system, it is crucial to ensure that the project stays on track according to the planned tasks.

Equinox Consulting provides a range of services, which includes project management. It can often be one of the most beneficial services which we provide for our clients.

Project management can be tricky to understand but vital when making such a big business decision! 64% of ERP implementations take over 6 months to complete, with some of the largest taking over 15 months.

Any deviations from the original plan should be subjected to a stringent change control process, where each change is evaluated for its necessity and impact. By strictly adhering to this process, the project can maintain its focus and minimise unnecessary disruptions.

Inevitably, enforcing the change control process may result in temporary unpopularity among team members or stakeholders. However, this potential backlash can be mitigated by implementing effective change management strategies.

Using Change Management Strategies

Change management involves actively engaging and communicating with all parties involved, ensuring that they understand the reasons behind changes and the overall benefits the new system will bring.

It can be easy to make a rash decision but by effectively managing change and involving all stakeholders in the journey, you can soften the blow of initial resistance or disapproval.

Transparent communication about the project’s goals, progress, and the importance of adhering to the plan can help create a more supportive and cooperative environment.

This approach ensures that the project remains on track and allows everyone to collectively contribute to its success.

At Equinox Consulting, we recognise the significance of maintaining project discipline and managing change effectively. Our experienced team will assist you in establishing and implementing robust change control processes, along with effective change management strategies.

By balancing the need for adherence to the plan with open communication and stakeholder engagement, we can help ensure a smoother and more successful implementation of your new system.

64% Of Small Businesses Currently Use ERP Software

As your organisation grows and evolves, it is crucial to have an ERP system in place that can effectively support your changing business needs.

When considering a new system, it is essential to evaluate its scalability and ability to accommodate future growth and changes. If you are a small business, then don’t underestimate the amount which it could need to grow in the future.

Whether you are expanding into new markets, adding new product lines, or acquiring new subsidiaries, a scalable system can adapt to accommodate these changes seamlessly.

It allows you to add or remove users, departments, or functionalities without significant disruptions or the need for a complete system overhaul.

However, a whopping 73% of small businesses have reported facing challenges when integrating other systems with their existing ERP software. This can often be caused by poor implementation or software design.

This illustrates the need to hire a competent and experienced ERP specialist to ensure your operation does not hit a pitfall.

Should I Overhaul My System Instead?

Before making the decision to implement a new ERP system, it is important to objectively evaluate your current system to determine if there are any advantages to remaining on it.

There may be potential benefits to revitalising your existing solution, especially if it was highly customised when initially implemented.

Over time, the customisations made to your current system may have resulted in it becoming unfit for its intended purpose or slightly misaligned with your current requirements.

This issue is particularly evident in older Unit4 ERP systems, as their flexibility may have led to instances of over-designing and implementing functionalities that were not necessarily essential. It is possible that certain customisations were implemented because they could be done, without necessarily questioning whether they should be done.

Engaging in a system overhaul allows you to leverage the investments you have already made in your existing system while mitigating the risks associated with a full-scale implementation.

It provides an opportunity to optimise and enhance the functionalities of your current system without discarding what has already been built. By retaining your existing system and giving it a fresh perspective, you can save time, resources, and potential disruptions to your business operations.

Are You Interested in Unit4 ERP For Your Business?

If you are interested in implementing a new Unit4 ERP system or overhauling your current system, why not get in touch with Equinox Consulting to find out more about how we can help you on your journey?

Click here to get in touch now, we would love to help you.

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