The keys to business growth in today’s markets are quite simple. There are three of them. You build a custom solution based on what your company needs, you use those solutions to automate processes, and then you scale your company. It sounds simple, but there are some complexities involved.
ERP implementations are becoming more common, but there are still times when companies attempt them and fail. Why? Because they fail to follow some rather simple steps, and they fail to understand the future of ERPs. Business process improvement empowers growth, but only if it is done right.
Here are seven predictions about the future of ERP and how those predictions should affect your ERP implementation.
Custom ERPs Will Become the New Normal
There are a few industries that ERPs have been designed for that can simply work out of the box, but those are few and far between. Most out of the box systems must be modified or customized to meet a specific business’ needs. That is why custom systems like those developed by SixtySixTen will become the new normal.
The reasons are simple. There is often a larger investment at the outset, but implementation goes smoother, and the company is not bogged down or confused by features they don’t need, while they are empowered by having everything they do need in a single program.
Custom designed ERPs created for a specific company rather than an industry will become the norm going forward.
Traditional Implementation Will Be Replaced by Digital Transformation
ERP implementation programs started in 1999, two decades ago now. Despite the fact that they often do not work well, and take much more time than they should, many companies still do things in an outdated way. That just isn’t working in today’s markets, and it actually didn’t work that well in the past either.
Companies now are often implementing more than one process automation software and tools at the same time, bringing their company up to more modern digital standards. These implementations will often integrate and happen simultaneously, more of a digital transformation than a simple implementation process.
Traditional processes will not only go away, but a new style and method of implementations will take its place.
Implementation Readiness and Analysis Will Become More Critical
What does this new style of implementation and digital transformation really mean? It means that early analysis of how prepared the company is for the transformation will become more critical. Companies are hiring implementation analysts who make sure that their custom solution is designed well, and that company systems and people are prepared to adopt them.
This is a part of the new normal. Readiness is vital, with 24-hour website operations and the need for limited downtime more common than ever before.
Cloud ERP Will Reach Adoption Levels
There are two types of ERPs: on-site and cloud ERPs. While there will always be on-site ERPs in some industries, cloud ERPs are becoming more common and reaching the point of widespread adoption already. Over the next couple of years, cloud ERPs will outnumber their on-site counterparts.
Organizational Change Management Will Fuel Success
Why do ERP implementations fail? Often the answer is that the company is not ready, as mentioned above, but the most critical thing is that the company does not have buy-in from employees or they are not prepared for the changes.
This is why organizational change management is so important. Organizational leaders must prepare the people component of the business for these new processes and must work with the people who operate inside of them every day as they are designed and implemented. Failure to work effectively with the people component of ERPs will spell certain disaster.
On the flip side, working with employees on change management will offer new insights and ideas, reveal pain points that can be solved pre-implementation, and prevents resistant behaviors from those working within the organization.
ERP Implementors Will Win Based on Results
The implementation process is never as easy as it seems, but it can be done better, and ERP implementors will more consistently be held accountable based on results. This means those who achieve smooth implementation with software that actually solves the problems it was put in place to will win, not only with that company but with earned reputation.
This relates to things like hiring independent implementation analysts, consultants, and other professionals who will hold ERP implementors to a higher standard and keep them from rigging implementation results or blaming their clients for failures.
Yes, ERPs do fail from time to time, but companies will continue to learn how to avoid failure, and what factors make an ERP provider the right answer for them and their company.
Digital Strategy will Fuel Digital Transformation
Finally, as companies move to a more integrated digital transformation that goes far beyond ERP systems and CRM applications, they will need a more comprehensive digital strategy. That strategy will fuel the success of their ERP implementation and its overall digital transformation.
Just like a business would not operate well without a good marketing strategy or budget strategies, they will not operate well in the digital space without a plan in place, one that takes into account their needs, processes, and people.
Have questions about a custom ERP? Need help with implementation and affecting a digital transformation in your company? Contact us at SixtySixTen today. We’d love to find out how we can help improve your business processes and help you scale your company.