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What happens when ERP goes wrong

Is your current ERP solution really a solution? Or is it just part of the problem?

When prospective clients meet with us to begin integrating abas ERP into their operations, we noticed they almost always come from one of three software environments before making the switch to us. Let's explore each situation and breakdown exactly what issues businesses face under these conditions:

 

 

 

 

 

1. No ERP system whatsoever

Obviously as an ERP solutions provider, abas believes in the power of its product. The idea a manufacturing or distribution organization wouldn't use any ERP software may seem a bit baffling, but the decision doesn't always pertain to lack of wanting ERP or a misunderstanding of its importance. In fact, a business's first foray into ERP often signals internal expansion and a need to develop more reliable processes at a commensurate rate.

A 2015 study from Software Advice found two-thirds of businesses investing in ERP software did not have any enterprise ERP in place before they started shopping. Of those buyers, nearly 3 out of 10 indicated growth drove their decision to integrate ERP. Other reasons included improving customer relationship management and making interdepartmental data more transparent for all its employees.

That said, in the face of prosperity and scaling up, selecting the right ERP solutions for the future of a given business can put decision-makers in a bind. With so many other things going on, choosing an ERP system to support all business functions has a tendency to overwhelm organizations and cause a stalemate in the selection process.

2. A network of disconnected, third-party software

Not every business is an overnight success. Organizations that grow gradually over time typically fall into this paradigm, a patchwork ERP system comprised of many disparate outsourced software platforms with varying degrees of interoperability. Some play nice with others; some don't.

A 2015 study from Software Advice found two-thirds of businesses investing in ERP software did not have any enterprise ERP in place before they started shopping

So, what happens when businesses try to utilize a "Frankenstein ERP"? For starters, enterprise data channels may be dammed up because of file format incompatibility. The inability to freely share information across a company in real time stifles cross-functional collaboration and could even make it difficult for businesses to aggregate valuable data for tax purposes. Furthermore, disparate ERP can also prevent process optimization or silo-busting initiatives by keeping data isolated. When organizations cannot draw as they wish from information caches required for analytics purposes or to establish KPIs, they effectively erect a glass ceiling through which they cannot transcend. In addition, training workers on multiple heterogeneous interfaces takes time, and with every new system to learn the risk of human error or tribal knowledge expands.

3. 'Homegrown' or legacy ERP

"We've always done it this way" are the six most deadly words to any business, and they usually crop up at least once in any conversation about ERP solutions developed in house.

Affectionately referred to as "Homegrown" ERP, these internally created systems may share similar problems to disparate ERP, like inaccessibility to real-time interdepartmental data. However, almost all of them have one fatal fundamental flaw: They were not built by ERP experts.

At least third-party software developers had a hand in designing the applications within disparate ERP systems, even if businesses piece them together themselves with varying degrees of success. Homegrown ERP, however, typically lacks features data-driven companies cannot go without: vendor support, ease of customization and the inability to integrate worthwhile third-party software. Moreover, homegrown ERPs commonly suggest data siloing, which restricts knowledge sharing. It could also lead to data duplication and, in turn, overextended data storage resources.

What can abas ERP do for these three ERP software environments?

For starters - and perhaps it goes without saying, but we'll say it anyway - integrating abas ERP into your business is obviously way better than doing nothing at all about enterprise resource planning.

The truth is, competitive markets won't wait for indecisive businesses to figure out how they want to innovate. abas ERP is a foundation for organizations eager to start their journey down the path toward more transparent control of resources through real-time data sharing and advanced automation capabilities, connecting every department to one centralized network.

Because of its modularity and configurability, abas ERP also brings together many different applications to serve any business need as cost-effectively as possible, whether it be sales planning, CRM, service processing, procurement, etc. And for businesses abandoning disparate ERP but still hoping to retain third-party software they love, abas ERP is compatible with a growing list of popular applications and will still deliver on the promise of a fully integrated ERP system.

Finally, when businesses work with abas ERP, they can rely on an intelligent staff of professionals tapped into the needs of modern industrialists and entrepreneurs. abas not only offers highly customizable software, but we host training sessions where business leaders can learn more about their abas ERP bundle, speak to our resident experts and collaborate with like-minded professionals in their field.

Enterprise ERP should work with you, not against you. If you saw even a little of your business reflected in any of these three scenarios, it may be time to consider what abas ERP could do to reshape how you do business.

Don't let your ERP go wrong. Download our free e-book: Unbounded Manufacturing, to help you out with all of your ERP needs.

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