Top 3 unforeseen costs of ERP Implementation

Top 3 unforeseen costs of ERP Implementation
September 29, 2022

This can be a very expensive undertaking—and it sometimes includes additional fees that you didn't anticipate. Even the most well-thought-out initiatives are liable to run into some unanticipated costs.

Let’s check out three ERP implementation's most typical unforeseen or hidden costs listed by STERP (Shanti Technology) - an excellent company manufacturing ERP software in Gujarat.

1.  Training Costs:

When it comes to ERP systems, training expenditures are arguably the most ignored aspect of the project. As part of the implementation phase, training is essential. As a result, your company's employees will be better prepared for when the new system goes live because they will have had an opportunity to practise using it. However, determining the cost of training is challenging. Some employees in your company will only require minimal training; either their work routines under new system will remain largely unchanged, or they are inherently quick learners who will quickly pick up the new system as it is introduced to them.

While some of your employees won't need much training, others in your organisation will. As a result, some employees may require additional time to adapt to the latest system as well as new responsibilities. People who are less tech-savvy or who need more time to get used to a new ERP system are also likely to be on your team, so be prepared for that.

Investing in high-quality education is a need. You'll save money in the long term if you make sure everyone is utilising the system correctly from the beginning. Experienced consultants for ERP software in Gujarat may help you learn, comprehend, and operate your new ERP system effectively.

Additionally, ERP implementations can take more than a year to complete. There is a good chance that you'll have some worker turnover during this period, which means that you'll need to spend more time and money training new employees.

Because many ERP projects fail due to a lack of investment in proper training, many ERP implementations are unable to succeed. In order to save money, you may cut corners on training. Still, you actually cost your company money because you're not getting the full benefit from the ERP software system you've spent a lot of money on.

This means spending more on training than planned. No one enjoys cost overruns, but investing in and properly training your team is one of the most crucial elements of the implementation process of ERP software.

2.  Re-engineered Processes:

Process re-engineering is an important part of ERP installation for many companies who want to avoid it. It's crucial to evaluate your company processes and identify pain areas during the ERP decision process; yet, many firms will aim to complete the deployment in the most time-efficient manner possible.

Unfortunately, none of us has achieved complete process optimization. In fact, inefficient procedures were one of the basic reasons you chose to use a new ERP system in the first place.

It only makes sense to re-think and rewrite your procedures to meet the best practices embedded into your new ERP software for engineering companies in Gujarat. Employ the built-in best practice rather than customising your new ERP system so you can continue using an inefficient procedure.

With proper implementation, ERPs are powerful tools that may help your organisation run more smoothly, from the back office to production lines. Combining ERP with improved procedures is necessary to gain the most from your ERP system.

Make the most of the chance when your personnel have to adapt to a new system and implement a new process. Compared with ERP system customization, re-engineering an existing process is much less expensive and time-consuming than modifying an ERP system to meet outdated and ineffective business processes.

Spending money on an ERP consultant can be more expensive than taking the effort to develop new, better procedures in-house.

3.  Employee Resistance to Change:

ERP implementations, as I'm sure I've said before, are disruptive. Any system that has such a broad impact on your business will inevitably bring about a great deal of change, and many people have a hard time adapting to change.

A few people in your company will be thrilled about the new system and look forward to its benefits. Others in your organisation may be hesitant or even hostile to change, so it's critical that you deal with these issues early on to ensure that the new system can be successfully implemented. If you are looking for the best ERP Software for your business, STERP (Shanti Technology) offers the most efficient ERP for manufacturing company in Gujarat.

It's essential to winning over important employees and company stakeholders early on with the new system. Let the operations manager work on the system from the outset if you are aware of the significance of his role in the ERP deployment process. Ascertain that he is a committed team member and that he is aware of the value the new system will bring to the company. By doing this, he becomes a partner and an ally who can help you implement your plan rather than someone who can hinder your efforts and cause you to stumble. He will also assist you in gaining support from others.

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