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7 Alarming Signs of an ERP System Implementation Failure & Ways to Prevent it

There are no hidden reasons for having an ERP system in the organization. We have already by far acknowledged the benefits of applying the technology in the business process. Ever imagined or experienced some bugs in the go-easy process ERP system? When recovering from a failed ERP implementation, the most common question organizations have is, “where we lacked?” Many organizations have failed to answer this question

It’s better to look after the root causes of failure in terms of the overall project execution.

Have a look at some precautionary root causes that should be on the list of the organization while implementing an ERP system.

Reasons for ERP Failure

1. False Defined Goals for the ERP Software

Very often various successful organizations have reviewed the ERP implementations as business transformation than technology projects. They believed that ERP systems have a huge impact on their business growth and are much more convenient than any Windows upgrade. Somewhere ERP implementations have a significant impact on employees, business processes, and the organization’s overall strategy.

However, many ERP consultants are observed to be more focused on technology rather than people and processes. In contrast, various research showed that software functionality is one of the least important processes for ERP success. So, it is advised to stop thinking so much about ERP implementations and start focusing more on people and processes.

 

2. Unrealistic Expectations

In order to avoid unexpected costs, various organization focusses on the cost-cutting and therefore, some ERP vendors low down the implementation cost and duration. This is where the ERP failure starts taking its bow with unrealistic expectations.

The SAP failure at Lidl demonstrates the importance of realistic expectations. The retailer defined strategic goals at the beginning of the project but didn’t consider the success factors necessary to achieve these goals.

 

3. Lack of Executive Buy-in

The executive team may have approved the project budget, but their job is far from over. They also need to form an executive steering committee to clarify the overall digital strategy and make decisions about resource allocation, timeline, budget, and benefits realization.

Executive involvement ensures the ERP implementation doesn’t become a technology project but fits into the organization’s overall strategy. This is important because organizations that use ERP software to enable a long-term digital strategy are more likely to realize benefits, such as improved customer service and sustainable competitive advantage.

 

4. Lack of Business Management Process

While working for/with a client, we help them in mapping their real-time state before selecting the ERP software. This allows and helps the organizations to define well-planned ERP requirements to share with ERP vendors and reveals the improvement opportunities.

Therefore, if your organization is simply moving to the ERP implementation rather than planning a digital transformation, it is recommended not to conduct the business processes further before ERP selection. Instead, it is highly appreciated to at least define overarching goals that will guide the choice of ERP software.

 

5. Resistance to Change Management

It’s organizational change management that can for sure prevent ERP failure. These organizations didn’t build a change management team and viewed change management as simply an end-user training exercise.

Organizations should invest in organizational assessments, employee communications, and customized training, that could ensure that their employees can effectively use the new ERP software or not.

 

6. Excessive Software Customization

ERP customization becomes a burden when you customize functionality that should be standardized. For example, many back-office processes are not competitive differentiators, so standard software functionality is usually sufficient. If employees are pressuring you to customize processes like this, it’s a sign of change resistance. We recommend decreasing the resistance instead of increasing the customization.

 

7. Underexperienced Resources

Make sure your systems integrator and ERP consultant, both should be experienced in ERP integration. An experienced ERP consultant within the industry is well aware of the challenges your organization might face and can ensure successful access with the right expertise.

 

How to Prevent ERP Failure?

The prevention of ERP failure is possible with ease by just have a keen observation for warning signs. If any of the above issues are fund-relatable, then it’s obviously not too late to change the process.

An organization should move with the best possibilities and careful consideration of all angles for successful implementation. Teaming up with experienced consultants is the best solution to void any inconvenience while implementing the ERP software. Let Intech Systems be your tech partner to guide you through the ERP successful implementation.

7 Upshots by Microsoft Inspire 2021

Time to raise the toast to what Microsoft brought its partner companies. Microsoft Inspire: the grand digital event was successfully held followed by amazing takeaways for its 400,000+ partner companies. Microsoft kicked off its virtual event with new visions for its technologies, aimed at aligning with a world where digital adoption has skyrocketed. At its annual partner conference, Microsoft brought out a troupe of technology developments along with a big scope for team integrations, a cloud PC and an investment in specialized clouds.

Microsoft isn’t settling for just being a “good” partner in its partner network of 400,000 companies — the cloud giant wants to be the best. During Microsoft’s Inspire 2021 partner conference this week, CEO Satya Nadella put it this way: “we want to be the best partner for our partners.”

Cheer out for 7 Upshots by Microsoft Inspire 2021

1. Easy & secure data personalization with Windows 365

Introduced to fulfill the need of secure remote working, as a huge demand for cloud-based solutions in the past year has been observed. Explore Windows 365, your new PC in the cloud assuring secured streaming of your personalized Windows experience. It modernizes the way Windows experiences are delivered for anyone on any device concluding the premium experience for both end-users and IT.

  • Easy to use, and just as easy for IT to manage using familiar tools and processes.
  • including desktop, applications, settings, and content, anytime on any device.

2. Microsoft Touts “Holistic” Security Over “Point Solutions”

Microsoft is the one and only vendor that offers such a comprehensive approach to security—and that trying to integrate different point solutions is no longer sufficient. “What differentiates our approach is organizing identity, security and compliance—as well as device management—in an interdependent whole, extending protection to all data, devices, identities, platforms and clouds,” Nadella said. “The Microsoft cloud is the only cloud with best-of-breed and best-of-suite security capabilities.”

3. Microsoft 365 Lighthouse

Although still only in the public beta phase, the tool provides partners with a central location and security configuration templates that ensure the protection of data, users, and devices against potential threats.

4.  Secure access of Dynamics 365 data within Teams

Microsoft Teams has scaled its unpredictable demand and demonstrated its value for organizations. In order to bring people together virtually and empower worldwide collaboration, 

What’s more:

  • No extra cost access to Dynamics 365 to all Microsoft Teams customers.
  • With excessive productivity, there will be no barriers between collaboration and business processes. 
  • The flexibility for organizations to determine when and how to purchase Dynamics 365.

5. Microsoft Viva

Microsoft Viva integrates and combines communication, learning, and well-being at work. In addition, new tools for developers to extend their apps to Viva will also be deployed, such as the Viva Connections APIs (analytics panel) and Viva Learning (extracting content from training providers, delivery dates that can be taken to Teams, SharePoint, Bing).

6. Industry Clouds including Cloud for Sustainability.

Microsoft is focusing on various industries like Finance, Manufacturing,  Health, Retail Etc and now Cloud for Sustainability will be a cloud designed to help customers reduce their carbon footprint and move towards a more sustainable model with the environment.

It will arrive by the end of 2021, and organizations will be able to record, analyze and reduce their emissions through software offerings that connect in real-time or suggestions for making better decisions. The cloud will function as a log panel to track progress and monitor targets.

7. Key Updates For Partner Programs and Project Orland

Microsoft offered various partner-focused announcements at Inspire 2021, including advanced specializations, the Partner Center portal, and ISV programs. Microsoft announced two new advanced specializations related to the company’s fast-growing Azure cloud platform.

Microsoft announced the launch of a private preview for a new Partner Center portal experience—which will provide recommendations about customers likely to convert from the trial phase, customers needing follow-up, and existing customers ready for new deployments. Microsoft is calling the new Partner Center experience “Project Orland,” and says the experience aims to help Cloud Solution Provider partners to grow their cloud business and improve account management. Project Orland is in limited preview, according to Microsoft.

Therefore, technology is now transforming the industries in real aspects. Take a short ride of what Microsoft Inspire introduced to modify industry work style.

  • Microsoft Cloud for digital transformation across industries
  • Drive growth with the most partner-focused business platform
  • The cloud created for the new world of work
  • Innovate from the cloud to the edge on your own terms
  • Building a Foundation of Trust and Security

 

 

How Does an ERP System Work?

A company’s goals and future points are always to grow. With growing sales, there is enumerate growth in challenges, work, team, and hierarchy. That’s where the difficulties knock on the door. Just imagine how exciting it is to crack the one on one deals back to back and you are filling the working bucket with extreme deadlines involving different levels of the team. How would you be able to manage all the team members, work with deadlines and hierarchy checks? 

 

Knock Knock! ERP arrived. Undoubtedly you need an ERP, an Enterprise Resource Planning system to keep track and organize key business information. It is a type of software that various organizations use to manage their day-to-day business activities like accounting, procurement, project management, risk management and compliance, and supply chain operations.

What is ERP (Enterprise Resource Planning)?


Enterprise Resource Planning is software to organize your workflows and business-oriented planning. It allows an organization to manage its business processes using a streamlined relational database. It allows the organization to overview its key functions. It simplifies the collection of cluttered data from a single resource and eliminates duplicate data duplication.

 

ERP rapid evolution

In the late 1960s, computerized business applications were introduced for the department of accounting and finance worldwide that uses mainframe computers. These pioneering applications were way faster and more accurate than usual & manual processes – but were slow, expensive, and limited in functionality. 

 

In the mid-1980s, when the competition in the manufacturing sector was exploding, new tools were in demand. By the end of the 1990s, ERP was introduced and transformed the entire technology sector by serving a high range of industries and combined MRP II, human resources, project accounting, and end-user reporting to make the procedure easier.

 

By the initially 21st century, faster internet speeds and new development tools again revolutionized ERP suites. Today, in the era of the biggest digital transformation ever, whether it’s small or big, every business is increasingly relying on AI technology and other innovations to automate their business processes and stay highly competitive.

 

How does it work?

Every ERP module priorly focuses on one business area. One can easily combine different modules to meet the organization’s needs, be it finance, sales, human resources, or logistics. There are also other industry-specific modules, right from manufacturing to retail. Each module is usually licensed separately, so companies can pick and choose the functionality accordingly and can add on & scale as needed.

 

An ERP (Enterprise Resource Planning) software allows the integration of several business applications and activities that enables the system to cater to most of the processes and departments. Most importantly, this gives the organization, the liberty of listing down the necessary functional modules of ERP software.

Following are the structure that ERP benefits the business. 

Accounting and Finance

  • General Ledger
  • Accounts Payable
  • Accounts Receivable
  • General Journals
  • Trial Balance and Financial Reporting
  • Bank Reconciliation
  • Cash Management and Forecasting
  • Budgeting

 

Manufacturing and Distribution

  • Sales, Purchasing and Tracking shipments
  • Track by Lot and Serial numbers
  • Track Quality Tests
  • Warehouse Management functions
  • Conversion Tracking
  • Tracking Labor, Overhead, and Other manufacturing costs
  • Provide the total cost of production

 

Sales

  • Order creation
  • Sales order processing
  • Purchase order processing
  • Online sales

 

Service Management

  • Easy monitoring and tracking of post-sales services
  • Warranties
  • Service Contracts
  • Analysis of lifetime product costing 

 

Why does an organization need an ERP system?

Take the ERP system as the brain of your organization’s technology system. A company cannot function without a proper ERP system as it integrates all the aspects of a business including product development, manufacturing, marketing, and sales. 

  • Money saver
  • Collaboration & productivity improvement
  • Better analytics
  • Simplified compliance and risk management
  • Improvement production planning and resource management
  • Enhance competitiveness

 

Have a look at some of the advantages of ERP

According to the different industries, any modern Enterprise Resource Planning system will have a long list of software features. Look out what top characteristics every organization should have:

 

  • Tailored data from multiple sources.
  • Day-to-day information and alerts, with self-service reporting across all operations.
  • Visual presentation of the information with easy view dashboards, KPIs, and analytics to assist in quick and informed decision-making.
  • Quality and advanced business processes, like, automation with AI and machine learning.

 

Business Takeaways

Higher productivity: It helps majorly streamline and automate all the core business processes to help everyone in the organization.

Deeper insights: It simply eliminates unnecessary information, gains a single source of truth, and gets fast answers to mission-critical business questions.

Fast-track reporting: Looking for real-time performance trance and fast results, ERP is the solution. 

Lower risk: It maximizes the business visibility and control, ensures compliance with regulatory requirements, predicts & prevents risk.

Simpler IT: By using integrated ERP applications that share a database, the organization can simplify information technology and provide an easier way to work.

Improved agility: With efficient operations and ready to access real-time data, one can quickly identify and attain new opportunities.

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