The use of ERP software in business provides a collaborative approach within your production facility, which ultimately enables your production facility to communicate across multiple departments effectively. ERP software implementation might be a little costly but you need to get it. However, the advantages exceed the cost, and it ultimately allows you to take the production facility to another level in terms of its effectiveness. Hence, it is necessary for every organization to know and understand the benefits of ERP software and opt-in for the same.
The heart of ERP software
The primary use of an ERP system is to organize all the information that a business receives. It includes the data involved in the companies’ everyday business activities, for instance, project management, procurement, and accounting that merges into a unified source. The ERP systems are essential for managing several thousands of businesses of all sizes in industries. For all these businesses, the ERP system is as crucial as electricity that keeps the infrastructural systems functional.
From the office clerks to CEOs, every member of the business organization can generate, store and use the information from one source using a set of standard procedures. Such centralized data and storage ensure that the data can get drawn from it and get referred to with absolute accuracy and completion.
The data integrity checks are an automatic feature of the ERP software for all kinds of tasks enacted in the company. When it comes to recent times, where the internet is prevalent, the ERP systems get developed with cloud computing as its central attribute. Also, embedding the ERP system with the internet unlocks new options and features for better functionality. It also offers affordability for small businesses, reducing operational costs and capital costs. To know more about this, you can check out ERP software in Saudi Arabia.
An external source maintained by an ERP software developer hosts the cloud ERP system. It takes away the infrastructural load from the end-user and allows you to focus on the value-added tasks away from maintaining and managing the infrastructure.
The user-resistance scenario
Here is a situation that often takes place than it should! For instance, an organization invests in and executes a new ERP system, but its users don’t adopt it ultimately. Some employees log in when they need to but don’t adopt the new features that the employer has expensively and painstakingly executed. Others develop a shadow system of their own that is ineffective, which comprises workaround procedures and leads to security threats.
Most humans resist any change! There are times when humans refrain from a certain change, even when it’s a process or a tool that will make their job simpler and faster. Keeping that in mind, multiple reasons outline the resistance towards ERP software:
- People might have used a similar system earlier and found it complicated.
- People might be disappointed that they didn’t get counted in the decision-making process.
- People might get upset about the redistribution of the accountabilities and changes in the power shifts.
- People might wonder that their work is at risk.
- People might have gauged that the familiar process has changed.
Also, there are times when the users don’t embrace a new system, as it doesn’t cater to their requirements. Irrespective of the reason, according to research, companies can resolve their user resistance to new ERP software by implementing a few strategies. These strategies are:
Making a business case for a change
Creating groundwork for new ERP software will enable the users to realize the advantages. For instance, organizations can create a business case by carrying out a rigorous business analysis and a current state analysis. It highlights where a company can enhance and how ERP software can assist the change. After this, the company leaders need to share this future vision and insight with their employees.
Communicate correctly and candidly to the entire company
Once the business case gets developed, the companies need to talk with the entire organization candidly concerning the process. It means explaining the vision and the direction and how the technology will play its part. It is necessary to speak with the employees directly to answer any concerns and queries they might have. It is also essential to collate ideas on how to enhance their job and the organization as a whole.
Get an executive sponsor
The senior management assistance can go a long way to resolve the user resistance. The majority of communications concerning the project needs to come from the top. The company’s executives need to showcase a unified front concerning the new ERP software’s benefits and necessity. When there is top management behind all the initiatives, it ensures that the process, the role, and organizational changes occur at the correct time.
Provide apt training
All employees must get comfortable with a new system at work. The training starts with a rigorous requirement assessment to outline the types of training that are required. It also reveals who all will get trained on particular modules. The users will require dedicated time for the training and access to assist for queries they might have once they go-live. It is also essential to provide ongoing training to reinforce the know-how and help employees learn new sets of skills in the ERP system.
Make sure that the user understands changes
When there is a new ERP software suite, it often needs the organizations to restructure departments and revise roles. The users might get weary of the changes. It is essential to make sure that the roles, the re-engineered processes, and new organization structure gets communicated and completely understood by every user. Additionally, it is vital to recognize the process owners who can act as the change agents.
User resistance to an ERP system in an organization is expected! So you need to work for this as well. If you want the implementation to go smoothly, you need to opt-in for the strategies mentioned above.