Do ERP goals align with enterprise needs?

If your enterprise is considering a new business management software solution, it's important to size up the tasks it will need to accomplish. An enterprise resource planning (ERP) platform is capable of managing a host of internal jobs, such as human resources, accounting and inventory management. One of the common problems researchers have found in unsuccessful ERP deployments is when the intended purposes don't align with the actual demonstrated needs of the enterprise. 

In a multinational study of ERP deployment, Severin V. Grabski, Stewart A. Leech and Bai Lu cited this lack of alignment as one of the primary risks of adopting a new system. 

"In summary, based on a review of the ERP literature, there are five major business risks associated with the implementation of ERP systems: the lack of alignment of the new information system and business processes; the possible loss of control due to decentralization of decision making; risks associated with project complexity; the potential lack of in house skills; and users' resistance," the authors wrote in the The International Journal of Digital Accounting Research. 

The best way to ensure that your ERP solution aligns with your actual needs is to work with a service provider with a comprehensive understanding of your business model. This entails assessing the needs your company has right now and the failures of legacy systems to keep up with their tasks. However, it also requires your vendor to anticipate future needs so that the platform will be fully scalable to evolutions in the future. 

At Accent Software, our team of experts prides itself on learning and understanding the specific constraints and needs your business must work to accommodate. Contact us today to learn more about how one of our business management software solutions can streamline tasks that currently take too much time and energy. 

Don’t be intimidated by ERP deployment challenges

One perception that may be keeping your company from implementing a business management software solution is the belief that the systems are too complicated or challenging to deploy. While it's true that many businesses lack the in-house expertise to select, deploy and maintain an enterprise resource planning (ERP) platform, the market is full of vendors who can assist your company in making the switch from legacy systems. 

"ERP systems, similar to other management information systems, are often perceived as very complex and difficult to implement," explain Alok Mishra and Deepti Mishra, Turkish researchers who published a paper on ERP deployment barriers. "System implementation success depends on many factors: the ERP system evaluation, vendor selection, the ERP consultant, the implementation plan and execution are all critical to the success of implementing an ERP system."

All of these implementation aspects are critical considerations that require a high level of expertise and anticipatory knowledge. This prevents situations where an ERP deployment fails, costing the business even more money than they were spending to keep legacy applications live. When decision makers are proactive about finding and selecting a qualified vendor, that risk can be greatly diminished. Studies show that a lack of knowledgeable support from a third party is linked to the failure of ERP deployment, so working with a vendor is the best way to avoid losing your investment. 

At Accent Software, we pride ourselves on the way we get to know our clients' business models from the inside out, allowing our experts to tailor ERP strategy to the static and dynamic needs of your company. Contact Accent today to learn more about how an ERP platform can improve operations in many different facets of your business. 

ERP deployment is no time to skimp on other IT

When faced with the decision to deploy an enterprise resource planning (ERP) platform, some look for ways to reduce costs in other areas of IT infrastructure. According to a study called "Critical Failure Factors in ERP Implementation," this instinct can lead to deployment failures when other IT aren't capable of supporting the new system. 

"Due to top management's insufficient financial resources provided for the implementation budget, a low performance IT infrastructure hardware was proposed by the consultants and project manager so as to reduce the costs of ERP implementation," wrote four authors of the paper, published in Pacific Asia Journal of the Association for Information Systems. "The poor IT infrastructure contributed to the slow processing capability of the ERP system."

It's important for enterprise decision makers to look at an ERP platform as a solution that will provide savings in and of itself. This results from reducing dependence on legacy applications which cost considerably more time and money to operate. As such, setting new limitations on IT infrastructure at the time an ERP system is deployed can create a tech environment without the capacity to support ERP at its highest functioning level.

Rather than cutting corners with other investments, enterprise leaders should seek advice to determine which areas are critical to supporting the new management solution. This minimizes the risk that an ERP deployment will fail. 

The best way to determine whether your deployment strategy will support ERP is to work with experienced experts. At Accent, our team of specialists has helped a variety of enterprises implement new business management technology. Contact us today to learn more about the benefit of working with a supportive team of ERP experts. 

Selecting the right vendor is crucial to ERP deployment

A critical dimension of implementing a new enterprise resource planning (ERP) platform is choosing a vendor you can trust. On this blog, we recently discussed a link found between ERP deployment failures and the lack of initiative enterprises show to seek consultation about their plans. Most companies don't have the internal resources or expertise to customize and deploy a full-scale ERP solution, so seeking help from a third party is essential.

In a CIO Magazine piece, Vajira De Silva, CEO of attune Consulting, says the best way to select a vendor who can understand your business needs is to do some homework. 

"Take the time to learn which ERP vendors are staying on the cusp of these trends and are investing in emerging technologies," he says. "It's not enough to solve your business pain points today. The ERP vendor should be able to demonstrate a longer-term growth strategy that can help you stay competitive into the future."

As De Silva says, long-term compatibility is important in a vendor-client relationship. At Accent Software, we take great care in learning about our partners' business models so we can help them anticipate pain points and needs they'll discover down the road. A less attentive vendor might set your company up with a solution that works right away but your return on investment may diminish down the road when they fail to support dynamic changes. 

Contact us today to learn more about how our solutions take operating models to the next level. At Accent Software, we're committed to deploying and maintaining ERP solutions to address partners' needs as they grow and change over time. 

What we can learn from the 1999 Hershey’s ERP failure

In the decades since enterprise resource planning (ERP) technology was first introduced, there have been many high-profile successes and failures. However, the failures often draw more attention than ERP triumphs. One memorable case of ERP deployment fraught with operational issues is Hershey's adoption of a system in 1999.

When the ERP platform was adopted poorly, Hershey's was unable to satisfy more than $100 million worth of orders for products they actually had in inventory. The price of Hershey's stock dipped and according to CIO Magazine, analysts didn't trust the company to properly deliver on promises again for nearly nine months. While your enterprise might not operate on that scale, you can imagine a comparable scenario based on your operating model. 

According to Geneco Consulting, these are some of the reasons why that integration went disastrously:

Executives rushed the process. While Hershey's was given 48 months as a suggested deployment period, leaders at the company insisted on 30 months. Due to the rushed deployment, issues appeared that might have been resolved with more time. 

Too many systems were deployed at once. Rather than focusing on a single centralized solution, Hershey attempted to launch three different resource planning technologies at the same time. This created conflict among the various operations. 

"With respect to the Hershey's case, many authors have criticized the company's decision to roll out all three systems concurrently, using a 'big bang' implementation approach," writes Jonathan Gross of Geneco. "In my view, Hershey's implementation would have failed regardless of the approach. Failure was rooted in shortcuts related to systems testing, data migration and training."

The company was too busy. In 1999, hysteria about the impact of "Y2K" motivated Hershey to insist on implementation before the new year. Unfortunately, this meant the transition of critical systems happened during the busiest sales and distribution period of the company's fiscal year. In addition to raising the stakes, this window of time also made it harder to provide sufficient attention to the new technology. 

"Back in 1999, of course, it was a terrifying new prospect for investors to consider: Could a failed computer project take down a Fortune 500 company?" writes Christopher Koch of CIO . "Hershey's stock price fell more than 8 percent on that September day, and the computer system mystery made the front page of The Wall Street Journal."

The benefit of working with experts to deploy a business management software solution is that we can help determine worst-case scenarios and establish ways to avoid them. Contact Accent Software today to learn more about how our technology can optimize operations at your enterprise. 

Study connects ERP failures to decline in consulting

A report by Panorama Consulting sought to reveal trends and common implementation occurrences for enterprise resource planning (ERP) platform deployment in 2015. The firm studied 562 participants with experience implementing ERP systems at their enterprises. Some of the key findings were that many deployments came in under budget, yet there was a significant incidence of implementation failure. This reiterates the importance of selecting a partner with qualified ERP specialists to guide enterprises through the process of adoption.

Panorama conducts this study annually and 2015 marks the highest participation rate of manufacturing decision makers.

"Manufacturing still represents the most common industry among respondents," explains the study. "This may be a result of an increasing number of vendors incorporating more robust manufacturing functionality into their software. Logistics, production planning, inventory management and production functionality continue to be significant aspects of vendor software roadmaps."

ERP platforms are uniquely suited to meet the needs of manufacturing operations of many different sizes. At any given time, executives in manufacturing must manage their workforce, inventory, orders, communications, production and shipment. With so many different balls in the air, a streamlined solution for resource planning helps remove opportunity for human error and automates processes that have historically been completed manually.

One correlation the study presents is the rise in ERP deployment failures and the decreased reliance on ERP consultants. As enterprises become less reliant on experts to deploy systems, the rate of failure is bound to increase.

"The data indicate that the same organizations that are struggling with budget and timeline overages are also unlikely to seek guidance from ERP consultants," says the study. "Since last year, there has been a decrease in the percentage of respondents who engaged ERP consultants. Of those that do choose to work with ERP consultants, the nature of the organization's engagement with consultants has shifted."

Particularly when ERP solutions are customized to specific business models, the stakes for failure rise. With the guidance of qualified and experienced ERP specialists, enterprises can feel confident in the quality of their implementation.

However, a higher percentage of respondents to the survey said they've been able to recoup the costs of their ERP deployment. In 2014, 27 percent said they had not yet reached ROI whereas in 2015, only 11 percent said they were still waiting for a financial return. Sixty-two percent of those who had recouped costs said it was done within the first three years of implementation.

At Accent Software, we've guided enterprises through the selection, deployment and maintenance of ERP platforms that streamline operations. Contact us today to learn more about how business management software can take your enterprise to the next level.

Decommissioning legacy applications is critical to ERP success

The point of deploying a new enterprise resource planning (ERP) platform is to reduce reliance on legacy systems so that they can be eliminated and enhanced functionality can be utilized. This can create friction when decision makers are too attached to systems that have served them for a long time. 

"If [organizations] do not actively work to decommission applications during the implementation, the end result is an ERP with all of the original legacy applications hanging off of it," John Picciotto, principal of application modernization at Accenture, told CIO Magazine. "The end result is another piece of software that [you] are paying maintenance and support on, paying for hardware and upgrades, and paying for interfaces back into the core ERP."

For that reason, executives should be prepared to scale back existing systems and applications to avoid confusion and congestion. If primitive, manual, offline, esoteric or irrelevant applications continue to be used after ERP implementation, the cost and time savings will be significantly reduced. 

In fact, the presence of an ERP platform working in conflict with legacy applications can increase waste through unnecessary redirections of energy. When enterprises adopt ERP systems, they should be ready to completely abandon the systems that have been rendered obsolete by their new platform. With the guidance of ERP implementation specialists, decision makers can determine the best time to decommission these applications, so that processes are not interrupted and the transition is bridged as smoothly as possible. 

At Accent Software, we've guided clients through the process of deploying and managing ERP platforms that support efficiency and optimize operations. Contact us today to learn more about how business management software can help take your enterprise to the next level. 

Questions to consider before choosing your ERP solution

Though choosing an ERP solution may seem relatively straightforward, there can be a lot of variables at play in your decision-making process. Each organization offers a unique software and some may be more well suited for your company than others. You may desire the robust functionality of an ERP solution and all that it can offer to your company, but be sure to ask yourself these few questions from MSDynamicsWorld before making your final decision.

  • What is the company's business strategy? It is important to know the growth and coverage plans of the company you decide to choose. This is especially true if your business is an international organization, where you may need to take into account the geographical coverage they offer.
  • Is flexibility or functionality more important? Sometimes you can have it both ways. But it is worth considering whether you want to have standard functionality or have an ERP solution that is more flexible and open to being tailored to your exact business preferences and needs. 
  • How does the solution perform? You should know the volume capacity of the enterprise's data and how it will grow over the next few years. Furthermore, with this comes the organizational structure of the system and company. Be sure to know if the company possesses a sustainable enough organizational platform to push you further into the future.

When looking at implementing ERP software for your business, make sure you have a clear plan and check off all requirements you have for choosing an effective solution. At Accent Software we have many years of industry experience in deploying successful business management software. Contact us today to learn more.

Reviewing the success of an ERP deployment

Once a company has implemented an enterprise resource planning (ERP) system, one of the next steps is determining return on investment (ROI). According to a report by Pulp & Paper Magazine called "Executive Study Assesses Current State of ERP in Paper Industry," depending on the scale of their enterprise, most decision makers expect seven to nine figures worth of savings from a new EDI system. 

The 120 participants were executives at medium- and large-sized enterprises in the paper industry. One of the most popular ways to determine deployment success was to perform an internal and external review of operations after implementation. 

"To assess whether the expected financial benefits of ERP have been achieved, almost 60% of the respondents indicate they will use some formal method, such as formal audit, performance management method, user survey, or customer survey," found the study, indicating that these methods were subjective. "Many respondents will use more than one method to assess whether or not ERP has delivered the expected set of benefits."

These inquests might not deliver an exact dollar amount for ROI, but they give decision makers a view into how effectively an ERP system has improved operations for employees and partners alike. Feedback from these areas is critical to identifying problem spots and addressing them quickly, without disruption to business operations. 

At Accent Software, we've navigated countless clients through the process of deploying a new ERP platform, including Microsoft business software, to boost productivity and improve communications. Contact us today to learn more about the benefit of better resource planning at your enterprise. 

How to decide on and best use your ERP solution

Your business is growing so quickly that simple accounting solutions are no longer an effective option for you. This is where an ERP management software solution would be perfect for centralizing and streamlining all of your business needs. Microsoft Dynamics NAV is flexible and allows companies to house a system on-site or on the cloud. For businesses wishing to propel themselves ahead into this modern age, Microsoft Dynamics NAV may be the best solution. 

Even if you have decided on utilizing Microsoft Dynamics NAV, The Huffington Post created a simple guide as to how best to ensure that you not only find the right ERP solution for your business, but also utilize it properly. These solutions require proper planning, being smart with maintenance and life cycle management, finding the right tools and creating a scalable solution.

First, make sure your ERP provider can offer customer assistance with not only the planning, but also with the implementation and ongoing support. It is a significant undertaking and you want to make sure you are provided with the means for success. Also, be sure to choose a solution that will grow with your enterprise. Don't just choose a system that meets your current needs, try thinking ahead to the future! Utilizing a solution that is cloud-based will further increase your ERP deployment scalability. 

Interestingly enough, also try to treat your ERP as if it is a living creature. If you don't tend to it and let it grow with you business, it could be costly down the road. Finally, it is important to find the right tools that will allow you to supplement your solution with added functionality and streamlined integration. If you focus on what specific features your company needs, then look for ERP solutions that are tailored to those needs.

For more information on ERP solutions and other business accounting systems contact Accent Software.