5 Ways to Avoid Risk When Moving on to a New ERP

Manufacturers often hesitate to upgrade their ERP systems due to fears of disruption and complexity, but by proactively addressing risks such as business disruption, system dependency, compliance, and costs, they can successfully transition to more efficient systems.

When considering an ERP system upgrade, many manufacturers opt for the status quo due to fears of change and perceived effort. However, delaying ERP replacement can lead to growing inefficiencies and strategic setbacks. Understanding common risks and how to address them can make the transition smoother.

Business Disruption: To minimize disruptions, implement the new ERP in phases, starting with non-critical functions. Use parallel systems during the transition and train staff thoroughly.

Complexity: ERP projects can be complex. Assemble a team with ERP experience and conduct regular progress reviews. Pilot testing can also help identify issues early.

Legacy System Dependency: Document all customizations and dependencies of the old system. This helps ensure critical functions are carried over and allows for effective data migration.

Regulatory Compliance: Ensure the new ERP meets all relevant regulations. Engage with regulatory bodies and select a vendor with a proven track record.

Costs and ROI: Perform a detailed needs assessment and realistic budgeting. Cloud-based solutions can reduce up-front costs and offer subscription pricing.

By addressing these risks proactively, manufacturers can successfully navigate ERP replacement and enhance their operational capabilities.

Read Complete Blog

Check out QAD