“Employees have a lot on their plates right now.” “Some of the executives are taking vacations this summer.” “We don’t know if we can get the budget approved.” “Now’s just a bad time.” “Let’s wait to see what happens with the economy.”
Sound familiar? These are many of the reasons we hear companies say why they can’t start their ERP implementations right now.
Unfortunately, there is never a good time to start an enterprise software initiative, but it’s something that most organizations need to further their businesses, scale for growth, increase revenue and improve delivery to their customers. In other words, it’s a necessary evil – and one that’s not easy to successfully pull off, either.
But there are a million reasons why starting your ERP project now makes more sense than waiting. Here are four of those things that may help determine if now is the right time:
Reason #1: Weigh the costs versus the benefits of starting your ERP software initiative now
There are certainly costs associated with starting your project now. Money, time, resources and heartburn are some of the things you can expect to invest in your initiative. However, in most cases, the benefits of a new system far outweigh these costs. In particular, be sure to look at how new technology might help you increase revenue, reduce costs, increase efficiency, and make employees’ more productive. Also be sure to consider how much waiting to fix some of these problems is really costing you – it is likely more than you think, especially when you consider the opportunity costs of waiting.
Reason #2: Develop an IT and ERP strategy roadmap
The proliferation of enterprise software options available today can be overwhelming, leading many to analysis paralysis. However, it doesn’t have to be that difficult. Create an objective, technology-agnostic strategic roadmap for what technology options might be best suited for your needs. Be sure to consider all options: SaaS vs. on-premise, single ERP vs. best of breed, standardized vs. decentralized systems, etc. Once you define some of these strategic variables and narrow the field, your analysis and decision will become much more clear.
Watch the video on YouTube: Checklist for Deciding Between SaaS and On-Premise ERP.
Reason #3: Consider your alternatives to ERP
It may be that it really isn’t the right time to be biting off a big new ERP system for your entire organization. Perhaps an upgrade of your current system will deliver more low-hanging fruit at a lower cost. Or perhaps reengineering your business processes will do the trick. Whatever you do, don’t feel as though you necessarily have to implement a brand new system to improve your business. Consider your alternatives and weigh the costs versus the benefits of each – and be sure that you get an independent and agnostic view of those alternatives.
Reason #4: Don’t confuse the need to wait with organizational resistance
Often times, delayed ERP decisions are related to organizational resistance rather than a legitimate business reason for doing so. And this is often just the tip of the iceberg, but organizational change management shouldn’t be a reason to postpone an initiative that will deliver tangible business benefits to your organization. Instead, conduct an organizational readiness assessment to determine where the sources of resistance are and identify how those organizational barriers can best be removed. This assessment should form the basis for your organizational change management strategy and plan.
So, instead of finding reasons why now isn’t a good time to start your initiative, perhaps it’s time to start thinking about business benefits in the long-term.
Author: Eric Kimberling
