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signs ERP systems fail

Six Warning Signs ERP Systems May Fail

Over the years, we have written quite a bit about the many “train wrecks” that seem to plague a disturbing number of ERP software systems. We have also litigated many of these disputes on behalf of companies whose systems did not meet the promises made by software vendors or integrators during the software sales process.

But litigation is a costly, time-consuming, energy-draining and lengthy process. Receiving compensation for a failure years after it occurs does not replace anything that was lost in the meantime.

In our decades-long career of negotiating, drafting and litigating contracts for ERP software systems, we have come to understand how and why many of the train wrecks occurred. In fact, there are definite signs that an ERP software implementation or digital transformation is running into trouble. Knowing the signs and acting quickly to remedy it can keep a bad situation from spinning totally out of control.

Below are six common signs that indicate an organization’s ERP software system might be heading for trouble:

1 – Difficulty billing customers. Often, the invoicing process is the first to encounter difficulties. Either invoices can’t be generated in a timely fashion or they are inaccurate and customers start contacting suppliers because they are confused or angry.

2 – The supply chain is interrupted. An extreme example of this came when Revlon was unable to ship to retailers because it was getting late deliveries from suppliers. Shareholders filed three separate class-action suits to recover the money they lost when Revlon’s stock price took a hit. If there are supply chain issues, it’s very likely rooted in an ERP problem.

3 – Inventory control is uncontrollable. When there are supply chain issues, it usually spills over into inventory control. Managing inventory is tricky at best: too much inventory and inventory is tied up; too little and production is slowed, meaning shipments are delayed. If inventory controls are not functioning properly, it is often a sign the ERP software system is not performing as needed.

4 – Problems moving data between divisions. The great strength of ERP is it assembles actionable data across many functions and facilitates management decisions. However, if silos begin to appear, or are not removed, it greatly inhibits comparing data streams. A business also loses the ability to spot correlations and patterns that can produce key insights. If this becomes a problem for the c-suite, they need to look for the root issue in their ERP.

5 – ERP isn’t integrating smoothly. For any ERP software system to generate value it must integrate seamlessly with an organization’s other systems, especially those involving payroll and finance. When this does not happen, it quickly snowballs into widespread inefficiency, to say nothing of employees’ irritation with incorrect paychecks.

6 – System agility is awkward. Because ERP technology is rapidly changing, the introduction of enhancements can happen before they are fully mature and bug-free. If an upgraded ERP software system does not integrate smoothly, it becomes more disruptive than beneficial. Difficulties loom when the system is not agile.

Benefits and Challenges

An ERP software system is a challenge to maintain due to its integrated nature. In a worst-case scenario, an undetected problem may cause it to shut down entirely, causing a massive disruption that ripples through an entire organization.

A system that does not integrate properly will create more disadvantages than advantages for an organization. Preventing a train wreck is possible, but senior people in a private or public sector business need to spot any early warning signals that trouble is brewing. Don’t rely on your vendor or integrator to do it for you.

Source: Lexology


If you have any concerns about your ERP system, please feel free to contact us. Data V Tech is proud to be one of the leading firms to implement Epicor ERP for large manufacturers and businesses in other industries in Vietnam. We would love to share our experience with you!

cloud erp mistakes

Rootstock: 10 mistakes to avoid with Cloud ERP

Cloud supply chain and manufacturing Enterprise Resource Planning (ERP) solution provider, Rootstock Software, identifies ten common challenges to overcome to ensure a quick solution rollout for your organization.

Mistake 1: Not knowing why you need cloud ERP

Don’t just gather requirements for moving business as usual into the cloud. Take the time to think and talk about what you want your operation to look like after implementation.

Mistake 2: Letting your expectations get out of hand

Be patient. If you choose the right solution and implement it in a deliberate, strategic fashion, you should expect meaningful results. For example, Matouk, a high-end, custom linen manufacturer, implemented Rootstock Cloud ERP and Salesforce CRM. In six months, they achieved an ROI of 223%.

Mistake 3: Moving ahead without a committed executive sponsor

ERP will be the central system of record that impacts your end-to-end business processes, so getting cross-functional involvement is critical. The ideal sponsor is a CTO or a senior operations executive with technical expertise. But whoever takes on this task must be committed, engaged, vocal, and visible.

Mistake 4: Ignoring the change management imperative

Accounting for the human factor is paramount. Be honest with the change management involved because some won’t like change and others will embrace it. Be prepared and empathetic but be clear that this is happening.

Mistake 5: Not having enough (or the right) people assigned to the implementation project 

You’ll need a seasoned project manager to guide this implementation. Someone who knows how to define the new business processes you’ll want to enable with your new ERP solution, and the cloud platform you’re migrating to, is critical.

Mistake 6: Ignoring maintenance requirements 

Maintenance is no longer a dirty word with the cloud. It’s prudent to make someone responsible for ensuring that your system is always running well, progressing in capability, and is functionally up to date.

Mistake 7: Limiting your vendor evaluations to the usual suspects 

Competition has also created more vendors focused on the needs of specific manufacturing verticals. Consider both large and small ERP vendors that have real experience in your chosen industry.

Mistake 8: Implementing everything at once

Break your implementation into small steps, consistently seek user input on requirements, test the system, solicit feedback on results, and adjust as needed.

Mistake 9: Automating what you do rather than thinking about what’s possible 

Keep an open mind. Native cloud ERP brings many benefits: scalability, a platform that offers plug and plays customization, mobility enablement, the agility to simultaneously support multiple manufacturing modes, and so much more.

Mistake 10: Keeping things quiet

The best way to keep an implementation moving forward in a positive manner is with clear, open, and frequent communication.

Source: Daniel Brightmore

ERP vendors 2020

Solutions Review Names 4 ERP Vendors to Watch in 2020

Solutions Review’s ERP Vendors to Watch is an annual listing of solution providers we believe are worth monitoring. Companies are commonly included if they demonstrate a product roadmap aligning with our meta-analysis of the marketplace. Other criteria include recent and significant funding, talent acquisition, a disruptive or innovative new technology or product, or inclusion in a major analyst publication.

The process of searching, evaluating, purchasing, and deploying an Enterprise Resource Planning (ERP) solution is not as simple as it once was. There’s no such thing as a one-size-fits-all approach when it comes to ERP software. Solutions today come in a variety of different flavors, each features a particular set of capabilities, strengths, and drawbacks. Choosing the right vendor and solution is a complicated process—one that requires in-depth research and often comes down to more than just the solution and its technical capabilities.

In that spirit, we’ve turned our gaze to the future of ERP software. Whether its inclusion in a recent analyst report, the release of an innovative new tool, or a bump in venture funding, these are the ERP providers that have earned watch list status from Solutions Review for the year ahead.

ERP vendors 2020

Infor is a global provider of cloud-based business management software products for companies in industry-specific markets. Founded in 2002 as an ERP software company primarily focused on manufacturing, Infor has since expanded to offer ERP solutions to industries such as automotive, distribution, construction, fashion, food & beverage, hospitality, retail, and more. Today, Infor offers industry-specific CloudSuite solutions for businesses of all sizes. Building on robust ERP systems such as Infor LN, Infor M3, and Infor CloudSuite Financials, CloudSuite solutions deliver last-mile functionality for process and discrete manufacturers; global and SMB wholesale distributors; and service industries requiring end-to-end financial, supply, human capital, and enterprise performance management.

ERP vendors 2020

In 2016, Oracle acquired NetSuite in a definitive agreement saying “Oracle and NetSuite cloud applications are complementary and will coexist in the marketplace forever.” That being said, the two offer leading cloud-based ERP solutions designed for small, medium-sized and large enterprises. From advanced financials to supply chain management to billing and beyond, NetSuite and Oracle ERP solutions give companies the tools they need to accelerate growth and drive innovation, in industries such as financial services, healthcare, education, manufacturing, and retail. Oracle NetSuite ERP is a horizontal package designed for a wide range of industries. It permits customers in any industry to manage their front and back-office functions, plus web operations, all from a single and reliable source.

Founded in 2008, Acumatica provides cloud and browser-based business management software designed for small, mid-sized businesses and large enterprises. Acumatica delivers adaptable cloud and mobile technology with a unique all-inclusive user licensing model, enabling a complete, real-time view of your business anytime, anywhere. Acumatica ERP provides the full suite of integrated business management applications, including financials, distribution, manufacturing, project accounting, field service, Commerce Edition, Construction Edition, and customer relationship management. Acumatica provides its Studio feature, which empowers business process changes while enabling software customization instead of requiring businesses to change their business processes.

Epicor ERP 10

Established in 1972, Epicor Software Corporation provides cloud-based industry-specific business software designed around the needs of manufacturing, distribution, retail, and services organizations. With three ERP platform offerings, (Epicor ERP, Epicor Prophet 21 and Epicor Eclipse) ERP solutions from Epicor help customers harness data and automation to stay productive and profitable. With capabilities spanning from customer relationship management, content management, BI and Analytics, to eCommerce and sales and financials – Epicor ERP products give you room to scale and evolve with a software system that helps you keep pace with technology in the age of Industry 4.0.

Source: Solutions Review


Data V Tech is proud to be one of the leading ERP vendors in Vietnam. For further consultation, please feel free to contact us.

wrong erp implementation

3 Steps to Take When Your ERP Implementation Goes Wrong

Clear communication around deliverables and expectations can salvage even the most frustrating ERP implementations for distributors.

In 20 years, I have witnessed more than 1,000 ERP implementations, and historically, they have had mixed results. For the past few years, I’ve conducted formal and informal surveys of companies that have recently gone live on their new ERP systems. Implementations that were challenged typically reported that their budgets are twice what they expected, and the process took twice as long. The most concerning thing I hear is that they received only 75% of the functionality they expected.

It’s safe to predict that following go-live of your new technology solution, you will feel you received less than expected.

For that reason, it’s reasonable that an approach should exist that seeks to answer the question, “What should be done when the project failed to deliver the success we anticipated?”

Rather than deciding you need to work around these frustrations, I encourage you to view the process of resolving them as the final stage in your ERP implementation. Ironing out flaws in the implementation is an important step.

You may find that your distribution company comes out even stronger on the other side.

The following steps are designed to help further enhance the project deliverables.

 

1. Review Project Documentation

Documents produced during the sales process, such as quotations, invoices, and scopes of work should be carefully evaluated for promises and expectations. Additional documents such as blueprints, special scopes of work and change orders created during the implementation should also be collected.

From these documents, assemble a simple list of expected deliverables. The internal project team should mark each line item on the list as delivered or not delivered including any pertinent notes.

This list is important because one must be able to discuss the results with a business-like demeanor and in a factual manner, not void of emotion, but certainly with appropriate degrees of passion and commitment.

Now, do something truly difficult. Consider the possibility that what you want has flaws.

One distributor discovered that a large number of change-orders had been verbally initiated by departments, most of which were automation, macros, and time-savers intended to replicate the functionality of their legacy ERP which had been customized heavily over many years. Management’s desire was to use the new system in a more out-of-the-box manner. Eliminating many of these items greatly decreased their open items list.

This bit of introspection should be thought of as a standard step in the implementation process. Working closely with an experienced consultant, who now is well aware of your business is a great benefit and will help to place focus on what’s truly important. There is no failure when you discover along the way that old processes are no longer needed. In fact, continuing the art of process review is essential in order to obtain your goals.

 

2. Meet with Representatives of the Implementation Consulting Team and Executive Sponsors

Once you’ve fine-tuned your open items list you will want to meet with your project partners.

Here’s an agenda for that meeting that will help you work together productively:

  1. Gain agreement on your assessment of the deliverables.
  2. Review the status of each line item on the open items list.
  3. Negotiate!
  4. Set a date for the next project review meeting for this committee.
  5. Recommit to your consulting agency and consultants — or not.

While I’m highly confident that the vast majority of consulting agencies and consultants would appreciate and cooperate fully with the approach above, it’s possible that the relationship is damaged to a degree beyond recovery.

In these rarest of occasions, you will need to locate and select a new agency in order to move forward.

Decide quickly to recommit to your current consulting agency or select another. This decision is imperative in order to continue making progress in any reasonable time-frame. It can be a difficult decision because, on the one hand, you have a significant investment of time, knowledge and money with your current consulting partner — but, you may have simply worn each other out.

Keep in mind, in almost every scenario it is beneficial to continue the current relationship. Bringing a new consultant or a team up to speed will require even more resources with the hope they have some sort of magic bullet.

This perspective holds true even if you have been live on your new ERP for several months. Every successful relationship whether personal or business experiences ups and downs. The best partnerships fight for success together and refuse to give up on the other side. The rise and fall together. The grass is not always greener.

 

3. Communicate the New Plan

For the members of the executive leadership team, the plan this process has focused on professionalism and was conducted in an atmosphere purposefully designed to not let emotions overly impact the outcomes or the ongoing relationship with the other members of the team. Still, this is your business, your future, your livelihood, and the outcomes are highly impacting on a personal as well as corporate level. Everyone deserves to know what’s going to be done to make certain a satisfactory outcome will be the result.

In some appropriate means, be that an all-hands meeting or internal social media like Yammer, or an email from the president perhaps, bring everyone on board and recruit them into the process. The best medicine for everyone is to know that leadership has their back and in working on their behalf to fulfill the promise of technology.

Too often we fail to engage when disappointment occurs and avoid the conflict required to reverse the failure. For reasons not understood, we feel that conflict is worse than failure. It should be remembered that conflict resolution does not automatically imply a confrontational style of resolution. The style mentioned above could be described as collaborative.

When customers and partners work together, they achieve success together and shatter the 75% ceiling.

Source: Carl Lewis

 

For further information about ERP implementation, please feel free to contact us. You are more than welcome at Data V Tech