Inefficient ERP implementation processes can result in higher costs, longer timelines, and lost opportunities. ERP implementations often involve complex steps like installing new software or transferring data from legacy systems which may take time-consuming resources away from other important tasks that need your attention.
However, there’s one way you could make these transitions easier – by keeping things simple with just enough customization where needed instead of broadly implementing everything at once across your organization.
Implementing a new ERP system can be a daunting task, especially for larger organizations. When companies struggle with complex and time-consuming ERP implementations, they often find themselves feeling frustrated or overwhelmed. However, there is hope!
You can avoid the common pitfalls of a complex ERP implementation by keeping the process simple and avoiding customization where possible.
In this article we’ll discuss the advantages of keeping your ERP implementation simple and the steps you should consider taking to achieve simplicity in your implementation.
If you enjoy this article and would like to talk to Saber Limited’s president Rob Jolliffe and chat about these concepts, you can book a one-on-one 30-minute call with him at https://calendly.com/robert-jolliffe
Before we look at the advantages of simplicity, here’s a story to illustrate our point. A few years ago, a junior analyst who Saber had recently hired sat in on a training session for Saber’s Engineer-to-Order module we have developed for Microsoft Dynamics ERP software, NAV or Business Central.
At the time, the analyst was an APICS CPIM candidate and had just finished a 3-year course focused on best practices in manufacturing.
After the presentation, the analyst remarked how surprised he was at how simple the process we were training the customer in was. The flow of information and the use of NAV to manage the processes was very straight-forward.
The analyst said they couldn’t help but think about people he had seen struggle with ERP implementation previously. In fact, that projects had taken far longer than it should have and ended up costing significantly more than originally budgeted.
The fact of the matter was, some of the questions and much of the training were very basic. This is the knowledge level people must have when they are first starting to use ERP systems. They need to start with the basics first. The analyst was clearly surprised by their lack of knowledge, but it is common in ERP implementations.
Our newly hired analyst had been trained with products like SAP and Oracle at companies that have whole departments dedicated to production planning, or master schedule. The people at the companies that can afford SAP or Oracle have been hired to be highly specialized.
The company Saber was training on ERP software had started from just a few guys in a garage, and eventually grew into something much larger. In the beginning, the owner would have had to order materials, negotiate prices, build the products, and then sell them themselves.
But as time went on and the owner became busier, he would have hired more people to help him out. A bookkeeper to keep track of finances, a buyer to order supplies…the list goes on. Whoever helped him get on the road and sell more products was essential to his success.
Today there are 60 or 70 people there, and this is the first ERP implementation they’ve ever done. If we try and impose the real “best practices” you learned in school on them all in one shot, they’ll never be able to deal with it. It would be like trying to show someone calculus who doesn’t understand multiplication.
The Advantages of Simple ERP Implementation
When it comes to ERP implementations, simpler is often better. Trying to install and customize too much at once can be time-consuming and expensive and can take important resources away from other tasks that need attention.
Instead, a more targeted approach that installs only what is needed and customizes only where necessary can help make the transition smoother and more efficient. This can save time and money while still ensuring that your organization gets the functionality it needs.
There are many benefits to a simple ERP implementation, including:
- Reduced costs: When you implement only what you need, you can avoid spending money on unnecessary features or customization. This can help keep costs down and make your ERP implementation more affordable.
- Shorter timelines: A simpler implementation can often be completed more quickly than a more complex one. This can help you get your new ERP system up and running faster, so you can start realizing its benefits sooner.
- Improved efficiency: By keeping things simpler, you can avoid potential problems that can occur when you try to install and customize too much at once. This can help your organization run more smoothly and efficiently.
A simple ERP implementation can provide many benefits for your organization. By keeping costs down, shorter timelines, and efficiency high, you can ensure that your ERP system meets your needs without causing undue stress or problems.
How to Keep Things Simple
Follow these steps to ensure your ERP implementation stays simple.
1) Define clear business needs – knowing what information systems are needed for each function will help avoid any future headaches when trying to integrate different parts of the organization.
2) prioritize simplicity over complexity whenever possible because upgrades should always work in harmony rather than separately from one another which makes them harder (and sometimes impossible) to manage.
3) customize only where it makes sense – too much customization can lead to low user adoption and high costs, so focus on what will truly benefit the company and not just individual departments.
An efficient and effective ERP implementation doesn’t have to be complicated. In fact, by following these three steps you can avoid many of the common pitfalls that often lead to frustration and wasted time and resources. So don’t get discouraged – a simpler process is possible and your company can reap the benefits!
Conclusion on Simple ERP Implementation
While a more complex ERP implementation may offer more features and customization options, it can also be more time consuming and expensive. A simpler approach, while still providing the functionality for your organization needs, can often be completed faster and at a lower cost. If you’re considering an ERP implementation, contact us today to learn more about our targeted approach – we would be happy to discuss how we can help you get up and running quickly and efficiently.
If you need help with a Dynamics 365 Manufacturing systems choice Inventory Management in Business Central or any other questions, give us a call at: (519) 585-7524 x.45 or contact our teamwe’re excited to talk with you soon!
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