How to address internal resistance and find ERP success

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Of all the problems that can materialize during the implementation of an enterprise resource planning solution, internal resistance is perhaps the most serious. Even the most advanced technology can not overcome the will of an entire workforce determined to cling to old workflows, no matter how inefficient. Many organizations figure this out the hard way, according to survey data from Deloitte. Last year, the consulting firm connected with chief information officers who had recently overseen ERP implementation projects and asked them to cite the most significant barriers they encountered along the way. More than 80 percent ranked resistance to change as the top roadblock to ERP success.

Businesses just setting out on the ERP implementation journey can avoid internal blowback by simply planning for it from the start and deploying strategies designed to grease the runway, so to speak, CIO reported.

"Organizational change management is pivotal to the success of your project," Matt Thompson, founder of the Sarasota, Florida-based ERP advisory firm Clutch Consulting, told the magazine. "Typical ERP projects facilitate massive change in organizations that can include changing of day to day job descriptions or eliminating job descriptions in total. [These] changes impact the culture of your company and without careful control and communication plans and workshops you can create an adverse reaction to ERP [resulting in] barriers [to] implementation and adoption."

Here are some of the most commonly used and effective methods for getting employees on board and addressing resistance to change:

Encourage end-user involvement
Many enterprises think of ERP implementation as an isolated activity – something upper management and information technology team members manage with little input from the rest of the organization. This is true to some extent. After all, everyday employees cannot offer much help when it comes to IT planning and budgeting. However, there are certain parts of the process that should be open to end users, as these individuals will ultimately deploy the new solution and drive return on investment, according to ERP Software Blog.

Of course, this is not some sort of symbolic strategy. Employees immersed in the day-to-day business operations can offer key advice on everything from data migration and platform design to training and post-roll-out technical support. That said, encouraging end-user involvement does tend to appease skeptical workers who may grow anxious over top-down internal initiatives driven by executives and other members of the management team.

Employee training is essential to ERP user adoption success.Employee training is essential to ERP user adoption success.

Think user friendly
ERP adopters often focus on core system processing components when assembling feature lists and working with vendors during the design stage. This common tendency makes complete sense, as the backend fixtures that process production data ultimately determine system efficacy. However, ERP solutions do not get the job done alone. Humans must manage and maintain them, meaning project leaders and system providers must also consider user friendliness. Organizations that fail to take this variable into account often find themselves overseeing digital money pits whose users have eschewed modern technology for more familiar workflows.

How do adopters develop user-friendly ERP solutions? Constructing the software in the context of existing business processes and needs is the first step, IT Toolbox reported.

"Too often companies make the mistake of trying to mold their company around the system rather than the other way around," Eric Kraieski, president for the ERP consulting firm Agility ERP, told the online publication. "A better starting point would be to take an inventory of job roles and gaps, and then build the ERP solution around the business."

Of course, on a more technical level, adopters must encourage software providers to offer streamlined user interfaces that ease platform navigation. Simple dashboards and data input and output screens are a good start – as are robust notification systems that make it easier for users to monitor system activity and prioritize their work.

Conduct internal outreach
While the prospect of adopting an ERP may seem exciting to the business leaders and IT personnel who can grasp the potential of such a system, it may be more difficult for everyday employees to gin up such enthusiasm. Many may ask, Why the organization is essentially altering established processes all for a piece of software? Businesses should, of course, answer this question through internal advocacy, according to Deloitte.

Project leaders must get out in the operation and articulate their visions, helping employees understand how an ERP can help refine workflows, save money and open up new revenue streams. Executives should participate in this outreach as well, for their endorsements alone can turn skeptics into believers. Additionally, project teams should connect with select workers and ask for their assistance in these efforts. These individuals, called product champions, act as on-the-ground links between project teams and end users, stoking support for the ERP from the bottom up, IT Toolbox reported.

Invest in system training
Surprisingly, many ERP adopters simply gloss over this variable, expecting workers to easily pick up the new system with little assistance. This is, of course, an unrealistic expectation. The most user-friendly solutions are not 100 percent intuitive – even tech-savvy workers can struggle with ERPs, which often do not resemble familiar consumer applications. Companies that disregard these facts and drop new platforms in employees' laps with little to no guidance regularly suffer from user adoption issues. Some even end up watching their ERP adoption efforts collapse entirely.

Organizations can avoid these outcomes by offering robust system training and support, according to CIO.

"Learning a new way of operating will require a significant time commitment for everyone, so the project team must take proactive measures to reduce the burden on employees," Joel Schneider, cofounder of the IT consulting firm Liberty Technology Advisors, told the magazine. "Identify department-specific needs, allowing for sufficient time to develop and deliver training programs."

How do businesses develop effective training programs? Most share common features. For example, adopters with successful initiatives of this kind offer hands-on instruction based on real-life scenarios as a way to not only train workers how to navigate the platform but to also get them used to new internal workflows. Additionally, enterprises should work with internal IT teams or external partners to build ongoing support systems so users can get help whenever they need it.

With these strategies, prospective adopters can gain sustainable support for their ERP implementation efforts and equip end users with the enthusiasm and skills required to gain satisfactory return on investment.

Is your business looking to implement cutting-edge ERP technology? Connect with Accent Software Inc. As a Microsoft Business Solutions Partner, we offer Dynamics NAV/ERP environments fit for businesses of all sizes. Contact us today to learn more about our service and software offerings. 

Mobile ERP implementation problems every adopter should understand

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Enterprise resource planning technology continues to evolve with great speed. New innovations seem to materialize regularly, as software companies develop new system features and implementation methods. Mobile ERP technology is a product of this wider push to move such essential solutions forward. In recent years, vendors have released mobile-ready platforms that resemble social media sites and some of the other familiar portals in use today, according to CFO. These systems not only appeal to users but also provide powerful benefits for the enterprise, increasing productivity throughout the entirety of the supply chain.

Of course, mobile ERP systems, like their desktop-based predecessors, present unique implementation challenges. Sometimes, adopters fail to plan for these roadblocks and find themselves overseeing mobile ERP projects that are falling apart at the seams. With this in mind, organizations interested in adopting this technology must develop exhaustive implementation plans that address some of the singular yet common pain points that accompany mobile ERP adoption. Here are some of those complications:

Network connectivity
Users normally engage with traditional ERP platforms via Ethernet-equipped desktop computers, meaning internet connectivity is rarely an issue. For mobile ERP solutions, on the other hand, this is a critical concern, according to ERP Software Blog. In-house devices must be able to connect to the internet via Wi-Fi for mobile ERP software systems to function correctly. Surprisingly, many enterprises navigating the implementation process simply fail to give this variable any consideration or wrongly assume that existing company networks can support an influx of new devices running advanced, data-based applications.

Adopters must take great care in developing strong Wi-Fi strategies and work with external service providers to implement networks that support widespread mobile usage. Additionally, firms should emphasize data security when considering connectivity options, as large amounts of sensitive company and client information will soon be circulating internal networks.

Mobile ERP platforms present unique implementation challenges.Mobile ERP platforms present unique implementation challenges.

Standardization
Apart from network connectivity, standardization is perhaps the most important variable in the mobile ERP implementation equation. What exactly is standardization? In this context, it involves rolling out uniform applications, operating systems and processing equipment, according to TechTarget. This methodology eases mobile management activities and ensures that all workers have access to equally powerful technological assets. This kind of strategy is, of course, essential for firms with multiple locations, as dealing with disparate devices and systems across several sites lays the groundwork for information technology disasters of all sorts, from data breaches to partial supply chain software outages.

Why do so many organizations fail in this regard? In many cases, it comes down to cost. Some insist on leaving underlying IT infrastructure unchanged or adopting different devices with disparate OSs in an attempt to save money on implementation. However, in the end, companies that go down this path are likely to spend more correcting everyday glitches, mitigating instances of data loss and covering IT-caused production slowdowns than they would on new equipment. 

The solution is simple here: Adopters must standardize their equipment and processes when implementing mobile ERPs.

User Training
One of the advantages of mobile ERP platforms is their usability. Because they often look and feel like conventional consumer applications, users are likely to navigate them with confidence and possibly unlock new levels of productivity. With this in mind, some companies on the verge of go-live simply skip training, assuming their employees can effectively handle the application after a few moments with the user manual or a quick tutorial. This is a mistake, IT Toolbox reported.

While mobile ERP solutions may be designed for optimal usability, adopters must still take the time to design and deploy training sessions for employees. In many cases, these instructional programs might not cover application operation but instead address the transition to mobile workflows. Workers unbound from desktop ERP portals need direction on how to navigate the post-Ethernet workplace – especially those in the warehouse, whose days will be much different with ERP-enabled devices on hand.

Mobile ERP platforms represent the future of the technology, as businesses, no matter their size, move toward more modern processes and let go of legacy hardware and software. However, those looking to embrace this destiny and adopt mobile-ready ERP software must consider all of the variables and prepare themselves for the unique implementation challenges that accompany it.

5 ERP vendor selection mistakes to avoid

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Vendor selection is perhaps the most consequential step in the enterprise resource planning implementation journey. Here, businesses must find collaborators whose solutions and services can stand the test of time and yield optimal return on investment. Unfortunately, many never connect with such capable partners. In fact, an estimated 50 percent of the organizations that kicked off ERP projects last year reported being either dissatisfied or very dissatisfied with vendors, according to research from Panorama Consulting Solutions. A mere 26 percent attested to being pleased with solutions providers.

Why are so many enterprises having these negative experiences? Problematic vendor evaluation and selection practices. In many cases, the project team hastily forms a partnership with an incompatible software provider that cannot offer the necessary technology and support. This foundational discordance grows more pronounced as implementation progresses until finally, the business goes live with an ERP platform doomed to failure.

Of course, prospective ERP adopters can avoid this fate by learning from the mistakes of past implementers and developing effective vendor selection workflows that facilitate project success. Here are some of those common mistakes:

Lack of pre-selection planning
With the prospect of ERP implementation on the horizon, many organizations jump right into the software selection process with the belief that viewing the available options will shape their approaches. This methodology often leads to failure, as these overexcited enterprises invest in ERP systems without fully understanding how they fit within the operation or knowing if they further overarching business goals, according to Admiral Consulting Group. 

The alternative is obvious here – enterprises must develop shopping lists before they test the market. This requires evaluating existing operational workflows and information technology infrastructure to see where opportunities for improvement lie. Using this data and production targets, project teams can formulate accurate lists of must-have features and enter the marketplace with a complete understanding of what they actually need. Ideally, this pre-planning should include stakeholders from all departments, as ERP solutions affect anyone and everyone within the business. This cross-functional approach not only ensures that the end product works for all divisions but also paves the way for successful user adoption, as employees can shape the system so it addresses their specific needs.

An overly wide evaluation net
The market for ERP technology is expected to surpass the $41 billion mark within the next three years, according to data from Allied Market Research. The potential for profit is increasing, meaning more software providers set to enter the market. With this level of variety in the ERP realm, many adopters strive to look into as many vendors as possible, assuming they can find the one solution maker with the perfect combination of software and services to meet their needs. However, this rarely pans out. Instead, most end up burning out under the pressure of numerous demonstrations, proposals and sales calls, ERP Focus reported.

Companies are better off abandoning the quest for perfection, as market trends dictate that ERP providers offer similar benefits to remain competitive. Developing a shortlist of roughly three or four possible partners is the best option, as scouring the market into perpetuity will not yield a workable system.

Businesses should carefully consider possible ERP vendors.Businesses should carefully consider possible ERP vendors.

Ineffective vetting techniques
When it comes time to actually take a deep dive into vendor offerings, project teams often embrace an expedited approach, leaning on marketing materials and product demonstrations to quickly assess the legitimacy of software providers, according to CIO. While this strategy certainly speeds things up, it lays the groundwork for disappointment and, in some cases, complete project failure. How? In many cases, organizations invest in ERP platforms that look good on paper or on screen but simply do not hold up in the real world.

This misstep is entirely avoidable with the proper software vetting techniques. The first and most important evaluation practice is reference gathering. Businesses should always ask prospective vendors for at least three industry-specific client references. These companies should be able to provide details on how the vendor rolled out their respective solutions, discuss the efficacy of these systems and offer insight into essential support services. Adopters should avoid software providers that cannot offer up such references.

In addition to confirming the workability of key system features and ensuring service level quality, enterprises on the road to ERP adoption must also perform deep financial analysis to see if vendor-submitted cost projections are likely to unfold as planned. More than 70 percent of ERP adopters with projects in 2016 experience cost overruns, Panorama Consulting Solutions found. This essential practice can prevent such budgetary mishaps, ensuring the vendors completely understand and adhere to existing budgetary requirements.    

Poor understanding of vendor outreach
Enterprises often assume shopping for an ERP vendor involves simply reaching out and scheduling demonstrations. Of course, most solution providers will jump at the opportunity to take part in such unstructured interactions, as sales are on the line. However, this strategy offers few benefits for prospective adopters and leads many down the pathway toward client-vendor dysfunction.

Organizations should instead develop formalized procurement processes, according to ERP Focus. Company spokespeople should spearhead this effort by first reaching out to possible vendors and establishing official lines of communication. With these channels in place, project teams can put out requests for information to which software providers can respond. The average RFI includes questions on how potential vendors might address specific system requirements, along with more general inquiries pertaining to company history or operations. After project teams have received RFI responses and narrowed down the pool of possible vendors, they can then issue requests for proposals, which follow in the same vein as RFIs but include more detailed questions and require vendors to develop customized solution frameworks.

After reviewing RFPs, prospective adopters can further narrow down the candidates and put out requests for quotes. It is at this point that one or two contenders submit project cost projections. With this information and product demonstration notes, businesses can make an informed selection. Plus, the development of proper communication channels can ease the actual implementation process, as vendors know whom to connect with when product roll outs begin in earnest.

Contractual assumptions
By the a time project team has eventually landed on an ideal software provider, many conversations have unfolded. Internal IT specialists have discussed core system architecture and integration requirements with vendor implementation specialists. Business leaders have worked with sales personnel to hash out key features and services. Dozens of small tweaks have been batted back and forth. With the contract in hand, project leaders may assume the content of these conversations is included within and sign away, only to find out later down the line that this was not the case.

This kind of scenario can lead to major issues, some of which can derail ERP implementation altogether. This is why it is essential that project teams document all of the small changes proposed during the initial stages of the vendor selection process and work them into final contracts, ERP Software Blog reported. Such attention to detail reduces the likelihood of client-vendor dysfunction, cost overruns and ERP failure.

Organizations of all sizes make the mistakes mentioned above when evaluating ERP vendors. It is important that prospective adopters learn from these errors and avoid establishing relationships with software providers that could result in the complete breakdown of the ERP implementation and deployment process.

Key ERP security risks and what you can do about them

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Enterprise resource planning systems are ubiquitous across myriad industries. Why? Business can compete in the modern marketplace without these essential platforms. For this very reason, an estimated 81 percent of organizations have implemented ERP systems or are in the process of doing so, according to research from Panorama Consulting Solutions. Of course, these solutions, like all software, are susceptible to intrusion. Even on-premises setups tucked away in server rooms are under attack from a growing group of hackers and cybercriminals. 

These outside actors orchestrated more than 42,000 digital strikes last year, infiltrating mission-critical applications to siphon off sensitive data or wreak havoc within internal networks, according to analysts for Verizon Wireless. An ERP platform is an ideal target for hackers, as it contains both company and customer data and drives the backend machinery that makes business possible. That is why more than 60 percent of information technology specialists rank these systems above accounting or human capital management software, ERP Scan and Information Security found. Unfortunately, few companies act as if this is the case where data security is concerned. Only 44 percent order IT to perform monthly ERP security checks, according to ERP Scan and Information Security. And, a startling 14 percent never search their ERP solutions for vulnerabilities.

This state of affairs poses serious problems for organizations, as cybercriminals gain strength and bring about new data security risks, IT Toolbox reported.

"Hackers have shifted their focus from individuals to enterprises," Alexander Polyakov, chief technology officer for ERP Scan, told the publication. "We can expect an increasing number of targeted attacks, including ones against ERP systems. There are a lot of resources on the Internet providing all the required information on the ERP's architectures for attackers to customize their techniques."

To truly bolster their digital defenses and properly protect their ERP platforms, firms must first understand the threat environment. 

The rise of ransomware
This attack vector has experienced a meteoric rise in recent years, according to Verizon. The wireless carrier found it to be the 22nd most-used category of malware in 2014. This past year, it climbed to the fifth spot. Why are hackers embracing this particular virus? Ransomware makes it easy to collect money from unsuspecting victims. In most cases, this kind of nefarious program is delivered via an email client, where a user accidentally access it. The malware locks the computer and displays a ransom message demanding payment in exchange for system access.

A vast majority of victims pay the requested amount. For instance, more than 70 percent of the enterprises that suffered malware attacks in 2016 ended up paying their attackers, according to research from IBM. Half of these companies paid more than $10,000, while 25 percent paid between $20,000 and $40,000.

Unfortunately, ransomware continues to grow in complexity. The early versions that appeared on the internet in 2005 simply locked mouse and keyboard functionality, Wired reported. Newer versions come equipped with automated encryption components that seal off file access using a unique security key only the hacker knows. This makes it nearly impossible to bypass the malware without paying the ransom. Of course, companies are probably wondering how the threat of ransomware affects ERP platforms.

Once in the company network, this malware stops all connected systems in their tracks – including ERP solutions, according to IT Toolbox. Businesses with mobile-ready ERPs are at an even greater risk of suffering from ransomware attacks, as corruptible email clients share the same space as end-point ERP portals.

Businesses must protect their ERP solutions from cyberattacks.Businesses must protect their ERP solutions from cyberattacks.

Insiders do damage
Verizon recorded more than 7,700 of instances of privileged user misuse last year, 81 percent of which involved employees. In most cases, these individuals sought insider secrets they could sell on the black market, while others, roughly 17 percent, were simply snooping around in internal networks. This is an immense problem, no matter the motivation of the perpetrators. Seemingly harmless system snoopers can create legal liabilities, while more nefarious internal actors can steal sensitive trade secrets or purloin company funds via payroll fraud. 

Sadly, most companies are not prepared to deal with insider threats. In fact, an estimated 49 percent do not have user role management workflows in place, meaning system access is granted with little consideration for how misuse might affect the organization, according to research from Raytheon Cyber. Additionally, of the businesses that do have these processes in place, more than one-third leave it up to business units to determine what level of access employees receive. Only a quarter assign this duty to the area of the enterprise equipped to handle it: the information technology department.

ERP systems are, of course, vulnerable to this threat, as disgruntled workers or those looking for financial gain can easily leverage their credentials to misuse such platforms.

The password conundrum
Despite the consistent, widespread focus on password security, these key security phrases continue to pose problems for enterprise software users and their employers. To put it simply, employees are not trying hard enough when it comes to drafting effective passwords, according to research from Splash Data. Earlier this year, the password management company evaluated more than 5 million stolen corporate credentials leaked for public use in 2016. The password "123456" accounted for 4 percent of the entries and a startling 10 percent of the users employed credentials appearing on Splash Data's Worst Password list, which includes anemic phrases such as "password," "qwerty" and "login."

The data also revealed another troubling password trend: simplified word variations. In addition to the passwords above, many users employed easy-to-guess variations like "1234567" and "passw0rd."

"Making minor modifications to an easily guessable password does not make it secure, and hackers will take advantage of these tendencies," Morgan Slain, CEO for Splash Data, explained in an interview with Dark Reading.

Cybercriminals have indeed exploited this and other credential-related user tendencies. In fact, 81 percent of hacking-related breaches that occurred last year involved stolen login credentials, according to Verizon. This security risk certainly applies to ERP platforms, as most employ password protected portals.

Addressing the risks
With these and many other data security threats in play, organizations must bolster their ERP security strategies and employ policies that actually work.

When it comes to tackling ransomware, employee education is the most effective tool, ERP Focus reported. System users must have the knowledge required to spot suspicious messages and other web-enabled content that could carry the malware. Additionally, IT teams should address malicious websites, which constitute the second most common entry point for malware. Apart from this extra training, organizations can implement anti-virus software and build out robust back up and business continuity strategies ready for use in the event that ransomware does find a way into the internal network and cause problems.

"When it comes to tackling ransomware, employee education is the most effective tool."

Addressing unauthorized system access necessitates internal restructuring. The IT department – and, ideally internal data security specialists – should have full control over the credentialing process, as this business division is best equipped to evaluate the potential for insider abuse. Most ERP platforms come equipped with role management features, meaning few technical changes will be required. However, adopting user behavior monitoring software is a wise choice, according to ERP Scan. These platforms can lend IT teams system-specific visibility and allow them to identify malicious behavior.

There are limitless solutions to the password problem. For instance, credential crafting methodologies such as Diceware give users the ability to create powerful passwords without wracking their brains for easy-to-memorize phrases, The Intercept Reported. Of course, the organization itself must get involved as well. Establishing basic data security training programs helps, as does official company policies designed to encourage sound password usage. ERP Focus suggested instituting mandatory, company-wide password-change policies.

These strategies can help companies with ERP platforms fight back against the hackers and cybercriminals taking aim at their online assets. However, those managing older legacy systems might consider trading in these platforms for newer, easier-to-protect alternatives. Is your organization in this unfortunate position? Connect with Accent Software. As a Microsoft businesses solutions partner, we offer the Dynamics NAV/ERP platform, which is backed by top-of-the-line security from Microsoft. Learn more about our offerings today.

4 ERP planning and design strategies for project success

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Most organizations enter the ERP implementation process with the understanding that deploying such a system requires considerable time and resources. In fact, the average ERP project unfolds over 16 months and costs $1.3 million, according to research from Panorama Consulting Solutions. Despite this awareness, many undercut their initiatives during the initial planning and design stages, embracing problematic workflows that carry long-term, negative repercussions.

With this in mind, adopters must navigate the opening phases of the ERP implementation journey with great care and deploy procedural methodologies that facilitate the roll out of an effective, return on investment-rich system. Here are some tried-and-true ERP planning and design strategies in use today:

Obtain organization-wide support
Employees engaged with backend support systems and other hidden enterprise machinery easily understand the merits of an ERP. However, those in non-technical departments may not. In reality, most workers resist operational changes of any kind. Last year, Deloitte connected with ERP project leaders across myriad industries and asked them to identify the biggest roadblocks to implementation. More than 80 percent cited resistance to change as the top barrier. This is not some minor problem to be solved via top-down directive. No matter what business leaders say, employees will use whatever workflows support productivity. Most are more than willing to create workarounds to surpass technology they view as cumbersome or ineffectual.

ERP project teams must address this potential problem at the outset. How? Actively connecting with workers and explaining the benefits of the ERP is a good start, according to Deloitte. Stakeholders should help everyday employees understand the business case for the new system and communicate how said solution will fit into everyday activities. The latter variable is especially important, as end users will want to know how the platform will affect the day-to-day.

Of course, project leaders should also spend considerable time making a similar case to the executive team, CIO reported. C-level support is absolutely critical, for organizational leaders are responsible for freeing up the resources required for implementation. Plus, these high-ranking personnel can use their clout to further reinforce the importance of the project within the business and encourage widespread use. Stakeholders can win over executives by presenting detailed implementation plans and budget information. Additionally, it is wise to update business leaders throughout the lifetime of the project to keep them engaged and on board.

ERP adopters should focus on strong system planning and design.ERP adopters should focus on strong system planning and design.

Create a realistic budget
ERP implementation is expensive. While the average project cost has fallen in recent years, most enterprises still shell out millions to adopt ERP platforms. Although these expenses even out in the long run as the business grows with the new backend system in place, companies must still pay considerable amounts up front. Unfortunately, many adopters attempt to control costs by embracing overly conservative budgets that do not comport with the reality of ERP implementation. That is why a significant portion experience cost overruns. Last year, for example, an estimated 74 percent of companies with active ERP projects in place watched as actual spend surpassed projections, according to Panorama Consulting Solutions.

Businesses adopting ERP platforms can avoid this mess by researching average project costs and creating detailed implementation plans that cover everything from system design to employee training. This way, stakeholders and their C-level supporters can have an accurate, clear picture of the road ahead and set aside the right amount, as opposed to the figure that feels good.

Pick an experienced partner
ERP solution providers offer all sorts of proprietary platforms stuffed with flashy, seemingly essential product features. This state of affairs can create problems during the system evaluation phase, as project team members get overly invested in software demonstrations and push for vendors based solely on what unfolded on the screen before them. This is not the ideal methodology for selecting an implementation partner.

Instead, project teams should sit down and develop a list of must-have platform features that correlate to larger business goals, Manufacturing Business Technology reported. This pragmatic approach will lend those on the ERP evaluation group clarity and help them see past the gimmicks that fill most product demos. In addition to finding vendors that offer the right ERP components, adopters must also focus on working with partners that have demonstrable industry experience. Simply selecting good software is not enough. Project teams must pinpoint vendors that can integrate their solutions into industry-specific production environments.

Design something that works
When it comes down to designing an effective system, project teams tend to focus on larger backend components that power mission-critical ERP processes. These fixtures are, of course, immensely important but it is often better to take a more holistic approach to product design so as to roll out a system that not only possess great computational power but also works within the context of the business, according to ERP Software Blog.

In addition to pinpointing critical components and linking them to overarching business targets, project teams should spend considerable time contemplating usability concerns. Can employees easily incorporate system usage into their work days? Will the ERP data entry process bolster productivity or hinder it? These are incredibly important factors. Additionally, technical experts from the information technology department must evaluate the system and its infrastructure to ensure it integrates well with the existing company network. Operational leaders should conduct similarly intense functional reviews to understand how the ERP might affect production workflows.

Using this approach, project teams can work with vendors to create ERP platforms that suit the business and function flawlessly.

ERP implementation comes with considerable risks. However, businesses can mitigate these dangers by embracing pragmatic solution planning and design processes like the ones mentioned above. 

Is your organization prepared to embark on the ERP implementation journey and in need of a trusted software provider? Connect with Accent Software. As a Microsoft business solutions partner, we offer the Dynamics NAV/ERP platform, an ideal choice for enterprises of all sizes. Contact us today to earn more about our software and service offerings. 

How to earn executive support for an ERP change

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Information technology teams can easily identify an enterprise resource planning system nearing its expiration date. However, business leaders are less inclined to declare an expensive piece of company infrastructure dead. Last year, implementers spent an average of $1.3 million per ERP project, according to research from Panorama Consulting Solutions. With this much sunk capital on the books, it can be difficult for those in the executive suite to walk away and green-light the search for another solution.

Of course, most internal IT specialists understand that an unsustainable system can result in maintenance overruns and lost opportunity costs that far outweigh initial implementation expenses. With this inevitable situation in store, technology teams must push past initial C-level resistance, craft a strong case for change and ultimately gain the executive support needed for an ERP upgrade. Here are some tried-and-true techniques for achieving this goal:

Begin with directors and managers
The process of gaining executive by-in often begins with a trip to the corner office. However, in this case, IT workers and others searching for change should start with mid-level management, according to ERP Focus. These individuals actually engage with the ERP platform on an operational level, allowing them to offer demonstrable insight into how the system affects day-to-day business processes. If the ERP is falling apart, they can speak to how its diminishing features are weighing on the bottom line. Plus, the simple fact that these individuals, many of whom would normally be opposed to disruption, are advocating for change will get the attention of business leaders.

In addition to simply recruiting managers and directors for support, project leaders should also request any key performance data they might have on platform efficacy, as these figures will further bolster the case for change.

Offer multiple options, including alternatives
For IT teams watching once-functioning systems crumble before their eyes, it can be easy to look past simple improvements and move on to robust platform replacement initiatives. However, many executives bristle at this kind of single-solution scenario – they want options, Panorama Consulting Solutions found. With this in mind, project stakeholders should not only gather supporting information for an ERP swap, but also look into alternatives.

"Technology teams must push past C-level resistance and gain the support needed for an ERP upgrade."

System upgrades and business process improvements are the most common options. If replacement is truly the better choice, this should show through in the research. Of course, this evaluation could also yield a different conclusion.

Select a strong project leader
While planning and preparation can certainly make it easier to convince change-weary executives that an ERP swap is warranted, project teams must also organize internally to present a united front and broadcast a cohesive message. This usually involves assigning roles, starting with the most important position: project leader. Enthusiasm is not the only requirement for individuals assuming this role. First off, ERP project leaders must be able to multitask and possess the soft skills required to facilitate a collaborative environment, according to IT Toolbox. More importantly, these employees should have institutional knowledge and political chops to navigate the organization and cull support in the C-suite.

Additionally, team leaders with effective communication skills are especially useful in early planning sessions involving executives, as they can easily discuss the project and answer any questions – even the tough ones.

IT stakeholders and others in the business who believe an ERP upgrade is necessary can use these strategies to take their concerns to the C-suite and ultimately win support. Of course, once the project receives a stamp of approval, the solution planning and vendor selection phases come next. Enterprises across the country connect with Accent Software when this time comes. Why? As a Microsoft businesses solutions partner, we offer the Dynamics NAV platform, the perfect ERP solution for enterprises of all sizes. Learn more about our offerings today.    

Learning from failure: 3 ERP disasters every adopter should understand

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Implementing an enterprise resource planning platform is no easy task. In fact, more than half of all ERP implementation projects fail to meet fundamental objectives, according to research from Gartner published by Deloitte. However, this does not mean prospective adopters should discontinue their efforts to modernize internal workflows via new ERP solutions. These cutting-edge systems have the power to catalyze true transformation across the organization, facilitating accurate, data-backed processes with bottom line-building potential.

That said, firms embarking on the ERP implementation journey should keep that admittedly scary statistic in mind and familiarize themselves with some of its most notable data points. Here are five ERP disasters every adopter should know and understand:

Hewlett-Packard
By June 2004, Hewlett-Packard had successfully centralized and updated 34 of the 35 ERP systems bolstering its global operations, according to the International Data Group. The computing giant was on track to transition the final platform when major issues materialized, disrupting business operations in the Americas Region for six weeks – double the planned disruption period. HP experienced immediate repercussions as order fulfillment times lagged and customers complained. On top of that, third-quarter earnings came in below projected levels, creating further turmoil within the organization. Former CEO Carly Fiorina ultimately removed three members of the management team who oversaw the division responsible for the Q3 dip, which amounted to roughly $400 million. The failed ERP transition, while not directly related to the drop, helped color the situation – another internal misstep with serious fiscal implications.

What went wrong? According to former HP Chief Information Officer Gilles Bouchard, the HP ERP implementation team was to blame. Bouchard said three key issues came to the fore. One, stakeholders within the cross-functional group had trouble collaborating across silos. Secondly, established data integration processes broke down due to ineffective manual input practices on the HP side. Finally, increased demand pressurized the situation and led to unintended operational problems.

In the wake of this episode, Bouchard conducted an internal survey to further explore the ERP implementation failure and search workable solutions that might yield success in future enterprise information technology efforts. The CIO found that more collaborative business processes were required when combining disparate systems into one central platform.

"When you consolidate, by definition, there's a lot more interdependencies," Bouchard told IDG. "When everybody's got their own ERP [system], they can all work within their own silos. Now there's a lot more commonality and a lot more sharing, and a lot of learning in terms of program management."

ERP adopters can find success by evaluating historic implementation failures.ERP adopters can find success by evaluating historic implementation failures.

Lumber Liquidators
In August 2010, Lumber Liquidators completed the final stage of a significant ERP overhaul, IDG reported. This late push bookended a seemingly successful implementation project, as stakeholders put the finishing touches on up-to-date point-of-sale, inventory and warehouse management modules made for the modern marketplace. However, these new systems failed to stoke fiscal gains. In fact, the company saw a 45 percent decrease in net income over Q3. Why? Employee productivity plummeted.

Production teams left at least $12 million in unrealized net sales on the table, as they struggled to adapt to the new workflows that accompanied the recently-implemented ERP. System analysts watching the situation unfold immediately recognized the problem: Lumber Liquidators and its solutions partner SAP had not done enough to engage employees about the new platform, according to the ERP advisement firm Panorama Consulting Solutions. Without proper IT training or guidance, personnel on the ground simply side-stepped the system and returned to older methods, ultimately slowing production.

Unlike HP, Lumber Liquidators was not willing to accept all of the blame and argued that SAP was partially responsible for their Q3 losses. However, the materials supplier never took its complaint to the court of law, a common tactic for ERP adopters that link flagging sales to vendor shortcomings.

Nike
Back in 2000, Nike oversaw an ERP disaster of truly epic proportions, CIO reported. The athletic clothing company partnered with i2 Technologies, which merged with JDA Software in 2009, to design and implement an industry-leading solution that would help automat its backend ordering processes and forecast market demand for some of its key product lines, including the Jordan Brand shoes. Trouble began soon after the live launch, when a software glitch resulted in skewed factory orders. Nike ended up flooding the market with low-performing Air Garnett sneakers, while leaving sellers short thousands of pairs of in-demand Jordan models. The company took considerable losses as a result, incurring $100 million in lost sales and suffering a stock price drop of 20 percent.

"For the people who follow this sort of thing, we became a poster child [for failed implementations]," Roland Wolfram, former vice president of global operations for Nike, told CIO.

Nike placed the blame squarely on i2 Technologies, contending that the company's flawed software was the root cause of the supply chain breakdown. On top of that, the clothes company claimed the software provider could have easily addressed the issues, which resulted in sluggish integration and failed ordering operations. However, those on the outside looking in believed Nike shared some of the responsibility. The i2 Technologies solution accounted for just 10 percent of a $400 million supply chain overhaul that seemed overly ambitious from the start, according to CNET. The company wanted to consolidate a client relationship management system, an ERP and supply chain tools into a single functioning system, CIO reported. This is a tall order for any technology firm, as an innumerable number of variables must line up for things to go off without a hitch.

"Nike lost $100 million due to a botched ERP implementation."

"Doing those things at a small company is hard, but doing it at a global enterprise like Nike ups the extremely high chances of failure," Joshua Greenbaum, an analyst for Enterprise Applications Consulting, told CNET. "When these systems fail, they fail big."

Nike ultimately recovered from this hit, working with other vendors involved in the massive project to clean up misconfigured internal systems and get the project back on track. However, the implementation timeline did expand, growing from two to seven years. The budget grew as well. As the company completed the final stages of the massive initiative back in 2006, project costs had moved past the $500 million mark – an overrun Nike has successfully accounted for in the years since.

These stories constitute a cautionary tale for companies looking to integrate ERP technology into their operations. ERP adoption comes with considerable roadblocks. Those set on navigating these obstacles must carefully chart out their implementation efforts and work with employees across the organization to successfully meld new technology with existing processes. Vendor selection is, of course, another key concern, as adopters must collaborate with proven partners who have the industry knowledge, technical skill and solutions to meet their unique business needs.

Is your company prepared to bolster its digital infrastructure with an advanced ERP solution from a trusted software provider? Connect with Accent Software. As a Microsoft businesses solutions partner, we offer the Dynamics NAV platform, the perfect ERP solution for enterprises of all sizes. Learn more about our offerings today.

Mitigating common ERP implementation risks

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Enterprise resource planning platforms offer myriad benefits. Adopters can streamline critical backend operations, while introducing data-based processes that facilitate scalability and lay the groundwork for long-term success, no matter market conditions.

However, implementation is rife with risk. Developing and deploying one of these systems requires considerable company resources, as well as support from the end users who will eventually log into and use the solution. Many adopters fail to muster the internal strength needed to follow through on ERP projects, wasting money and time on half-imaged and constructed software. An estimated 26 percent of the organizations that started implementing ERP platforms last year ultimately failed, according to research from Panorama Consulting Solutions.

Companies exploring ERP solutions can avoid this fate by getting acquainted with the inherent risks ahead of time and actively working to address them as implementation unfolds. What exactly are the risks that come along with this process? Here are some of the common hazards that hamper businesses on the ERP adoption journey:

Focusing on the technology rather than the business
ERP implementation is, of course, a technological enterprise. Most organizations understand this and stack their internal teams with talented information technology professionals who can effectively evaluate available systems and understand how they might interact with existing backend infrastructure.

However, the software itself is only one half of the equation, according to Panorama. The introduction of an ERP system necessitates more widespread change. Business leaders and managers must adjust existing workflows to align with the new software. Companies that implement ERP solutions in isolation greatly increase their likelihood of failure, as they drop new systems into operations that are just not compatible. Users, faced with either continuing business as usual or integrating an incongruent platform into their day-to-day activities, will briefly feign usage and then go back to their old ways. 

Businesses can avoid this problem by embarking on operational transformations in which ERP systems are simply only one component. Using cross-functional teams, ERP adopters can catalyze the organizational change needed to support the new technology.

ERP solutions offer many benefits but risks abound on the road to adoption.ERP solutions offer many benefits but risks abound on the road to adoption.

Failing to invest in employee training and change management
System usage is often an afterthought – an issue many project leaders only address near the tail end of the ERP adoption journey, if at all. This, of course, is an immense mistake. If adopting an ERP is simply part of a larger strategy to transform the business, then, with this methodology, employees are left without the tools and guidance to navigate the post-implementation environment. How do users react when placed in this position? Most shun the new system and fall back on older methods.

Would-be adopters have watched such situations unfold. Last year, Deloitte connected with chief information officers who have overseen ERP adoption efforts in the past and asked them to identify the most common barriers to implementation. Approximately 82 percent of respondents placed resistance to change in the top spot. This hostility is often the result of ineffective training efforts, as frustrated workers take out their anger on the system itself, no matter how helpful it might be.

The fix here is simple. Project leaders must collaborate with human resources personnel to develop instructional resources that not only cover system features but also address how the new technology affects the business as a whole. Most importantly, organizations implementing ERP platforms should begin these efforts at the beginning of the adoption journey, working with employees to prepare for the change to come, according to CIO.

Handling the entire process internally
When it comes to implementing new enterprise technology, most businesses like to lean on internal IT teams. Although this strategy makes some sense from an organizational perspective, it also comes with complications. Company IT teams, while capable, often do not possess the specialized skills required to effectively vet and deploy ERP software. When they become the drivers behind the implementation process, costly roadblocks arise as they learn on the fly.

Consequently, adopters are better off connecting with ERP experts who have handled countless implementations and can leverage their knowledge of the space to offer solid guidance, according to Panorama. This way, businesses can have the best of both worlds: technical specialists who can integrate the new software into current computational infrastructure and ERP specialists who can render expert advice. However, this is not to say that intern IT workers should not be involved in the planning phase. These employees should be aware of all system specifications to ensure that the software comports with existing digital workflows, according to IT Toolbox. 

With these risks in mind, organizations can move forward with ERP adoption plans and chart out the way ahead, fully understanding the pitfalls that lie ahead.

Is your company prepared to bolster its digital infrastructure with an advanced ERP solution? Contact Accent Software. As a Microsoft businesses solutions partner, we offer the Dynamics NAV platform, the perfect ERP solution for enterprises of all sizes. Learn more about our offerings today.

Searching for an ERP? Mind these key trends

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Organizations on the hunt for new enterprise resource planning software do not conduct this search in a vacuum. As project leaders develop system requirements, source vendors and perform other central tasks, the ERP industry moves forward. Firms currently locked into the adoption process must contend with the many external forces shaping the market and possibly take these developments into account when designing their solutions. Here are some of the most impactful trends affecting the ERP arena:

Choices increase
When on-premises systems dominated during the early 2000s, prospective adopters had limited options. Vendors offered comparable products that more or less included the same base features, with few exceptions. This is no longer the case. The crystallization of cloud-based storage and processing technology has opened myriad new opportunities. Now, software makers boast vast portfolios with many different variations. Companies are responding to this shift by rolling out more complex ERP strategies that mix legacy and cloud components, according to TechTarget. Why?

Many are hesitant to relinquish legacy software and put their complete trust in the cloud. The data certainly supports this conclusion. Panorama Consulting Solutions recently connected with more than 340 adopters and asked them to submit details on their respective implementation journeys. Approximately 72 percent ruled out solely cloud-based solutions due to concerns over data loss, while 12 percent did the same in fear of suffering data breaches. While enterprise technology experts have dispelled the myth that cloud ERPs are more vulnerable than on-premises systems, organizations still balk at the idea of getting rid of their server rooms entirely. Still, many see the benefit of this newer technology and support mixed approaches, maintaining core legacy gear while moving customer relationship management and inventory management solutions into the cloud. Some are even combining the new and the old via specialized integration modules.

SaaS moves to the fore
The Software-as-a-Service model is quickly becoming the go-to arrangement for enterprises juggling multiple backend systems. This methodology offers several key advantages. Most importantly, vendors are in charge of maintaining SaaS setups, meaning adopters no longer have to worry about performing maintenance tasks or implementing updates. Additionally, the monthly billing structure that most often accompanies SaaS platforms facilitates vendor accountability and therefore improves user experience, as software makers must maintain high service quality to retain clients, Enterprise Apps Today reported. Consequently, 26 percent of respondents in the Panorama survey chose to implement such systems, making SaaS ERPs the second most popular choice behind on-premises solutions.

ERP technology continues to change with the shop floor.ERP technology continues to change with the shop floor.

IoT technology matures
The Internet of Things is expected to encompass more than 8.3 billion devices by the end of the year, according to research from Gartner. This represents an increase of 31 percent over figures recorded in 2016. Businesses alone will maintain over 4 billion IoT fixtures before the year is out, indicating the sustained growth of the enterprise IoT technology market. Manufacturers are, of course, leading the way when it comes to adopting these devices, integrating advanced sensors, mobile applications and other innovations into automated workflows meant to facilitate organizational scalability and longevity.

This sea change has had an immense impact on companies using manufacturing ERP software, as most have had to evaluate their existing solutions against new IoT requirements, according to Manufacturing Automation magazine. Vendors are certainly meeting the demand here, quickly rolling out IoT modules to support clients embracing the trend. However, some believe the emergence of IoT technology could change the ERP market entirely, Industry Week reported. How?

For one, the real-time data collection abilities that come with these fixtures could negate the need for forecasting, allowing companies to establish direct data flows between the point-of-sale and the factory. Analysts also expect IoT technology to establish lines of communication between the customers and ERP solutions, as individuals interact with backend systems via web-enabled products. This would give organizations the power to cultivate deeper customer relationships and forgo the manual data entry processes usually require to maintain accurate data. Lastly, the prevalence of IoT devices in the workplace will force prospective adopters to take a look at their data security measures to ensure that employees and consumers are protected against cyberthreats.

Firms looking to integrate advanced ERP technology into their existing operations must take these trends into consideration when forging their path toward adoption. Those that fail to do so may be setting themselves up for future failure, as competitors with forward-looking solutions leave them in the dust.

Is your organization on the hunt for a new ERP system? Connect with Accent Software. As a Microsoft businesses solutions partner, we offer the Dynamics NAV platform, the perfect ERP solution for enterprises of all sizes. Learn more about our offerings today.

Strategies for finding an ERP consultant

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Implementing an ERP platform is no easy task. Stakeholders from disparate departments must collaborate to design and source a sustainable solution that works for the entire organization. For some, the process can get too overwhelming, at which point external support resources are required. Most companies confronted with this state of affairs turn to ERP adoption consultants, trained professionals who leverage industry knowledge and technical know-how to shepherd clients through implementation, from planning to launch.

Last year, an estimated 68 percent of ERP adopters utilized consultants, according to research from Panorama Consulting Solutions. Businesses looking to take the same approach should carefully consider their options and choose the external advisor that not only understand the software but comports with internal culture. How can prospective ERP adopters go about getting the ideal consultant? These tried-and-true methods usually yield favorable results:

Focus on experience
Organizations that have never used ERP technology before are often amazed by its potential, framing the software as some groundbreaking new discovery. While these platforms do deserve praise, they are anything but new. ERP systems have been around since the 1980s, according to scholarly research from Idea Publishing Group. Consequently, consultants with decades of experience are available for hire – these are the quintessential candidates for businesses looking for implementation assistance.

Truly impactful consultants not only have knowledge of industry-standard ERP software but also understand how it fits into the operation. Additionally, these professionals can tap into sector-specific insights to help clients install and use technology that works with their unique processes. How do organizations go about judging consultant credentials? References are the key, IT Toolbox reported. The experienced can easily talk through successful implementations they have coordinated and provide references. That said, consultants who claim to have overseen strings of projects with 100 percent success rates are most likely bending the truth, as only one-third of all successful implementations fall into this category. Why? It is impossible for even the most seasoned ERP consultants to control all of the variables – they can only control their actions, not those of their clients.

"Last year, an estimated 68 percent of ERP adopters utilized consultants."

Look for budgetary expertise
Consultants do not simply help install whatever solutions their clients come up with. They actually participate in the system design and selection process, and therefore have a hand in the financial aspects of the project. Ideally, they actively work to create return on investment for the clients. This requires tangible budgetary chops, according to Panorama. Effective ERP consultants should be able to chart out the fiscal impact of the implementation and leverage their experience to look for ways to cut costs – a major concern for most adopters, more than half of which overran their budgets last year, the consulting firm found.

Judge cultural fit
In addition to meeting project-specific skill requirements, the ideal ERP consultant must fit internally. The average implementation unfolds over 12 to 18 months, according to TechTarget. These professionals are not only rendering services but also integrating into the business and closely working with employees in all departments. With this in mind, companies must account for cultural fit just like they might with full-time hires. Organizations that work with consultants who hold similar professional values are more likely to facilitate a smooth implementation and adopt an ERP solution that meets their business needs from an operational and cultural perspective.

ERP consultants can provide valuable assistance to business only just beefing up their internal systems. However, project teams should choose wisely, as the wrong external partner can wreak havoc and catalyze failure.