Enterprise resource planning (ERP) integrates business functions and processes into a cohesive system. It entails connecting different software used by distinct departments for diverse purposes to a centralized, shared database, minimizing the need for repetitive data input, accelerating reporting (and, thus, decision-making), facilitating workflow automation, and streamlining operations.

ERP is an excellent business tool — except Gartner predicts that by 2027, 70% of recent ERP implementations will not succeed in meeting their business goals, and 25% will fail catastrophically. A review of the reasons for ERP failure will make you realize how essential independent ERP consultants are to any business trying to make ERP work for its organization.

ERP vendors are trained and adept at painting an enticing picture of how efficient and smooth processes and workflows can be if a company uses their ERP solution. However, they may not be as forthcoming about the level and extent of integration, coordination, operationalization, and change management ERP implementation requires.

As such, business organizations could come onboard with the expectation that ERP rollout simply entails installing ERP modules, linking them, and teaching staff to use them. After doing these, everything will fall into its proper place. The factory would never run out of raw materials, there would be no overstocking or understocking, invoices would be sent out promptly, and suppliers would get paid on time.

When the reality of how involved, complex, and lengthy the process of ERP adoption is, organizations are blindsided and disheartened. They may run out of money and resources or lose critical support from their board. Consequently, they may delay the discharge of components essential for success, forgo requisite testing rounds, fast-track the ERP project timeline, or cut corners. Neglecting vital steps and essential components naturally leads to system weaknesses and failure.

An ERP project advisor can help you avoid this pitfall. The advisor will facilitate the discussions between your core ERP team and vendors, elaborating and clarifying your ERP transformation objectives based on what is and is not possible with the system and solutions you’re procuring. They’ll help you understand and visualize exactly what you can accomplish (and how) with your particular ERP system.

Capable project management is a crucial factor in the success of ERP transformations. A project manager creates the project plan, and the following are some of their tasks:

       Outline the project scope

       Identify individual tasks

       Assess budget and resource requirements

       Determine the critical activities and path

       Decide on resource allocation and utilization

       Estimate how much time the project needs from start to completion

       Schedule the project

       Monitor project progress

       Optimize resources or compress the timeline as needed

A project manager oversees an ERP project while balancing the constraints of time, cost, scope, quality, benefits, and risks. They ensure that project progress and requirements are regularly communicated to stakeholders (i.e., the company and the vendor-providers). They are also strategic, ensuring that at every stage and milestone achieved, the project remains aligned with business objectives.

This is why it’s crucial to bring an independent ERP advisor onboard to be your project manager. Since they specialize in major IT projects, ERP implementation, dealing with multiple vendors, and integrating differently sourced solutions, you can expect a smoother transition to ERP. It may not be totally without hiccups, but their expertise will ensure you can successfully overcome them.

A provider naturally thinks their ERP solution is the best. However, even if their product is the best in its class, that doesn’t make it the best software system for you.

You may have extensive backward compatibility requirements. You may be an insurance company, but the solution may have been built for manufacturers. The system may be overkill, given the scope of your business operations, the functions you must integrate and the workflows you need to automate. There are many reasons why an ERP solution may not be a good fit for you.

However, you may be unable to tell that the solution is unsuitable because you:

       Have imperfect information about the solution

       Do not have time to research all your ERP options

        Are unaware of potential integration issues in your specific use-case scenario or application

        Do not have the technical expertise necessary to competently and fully assess solution fit

This is why you need an independent ERP advisor. They will assess your business requirements in depth and the objectives you want to accomplish from your ERP implementation. If you have no idea, they can guide you to identify the possible objectives that you want to achieve and choose the best ERP system for your business.

They will also ask you to describe your functions, processes, workflows, and tools. This way, they will understand how things currently work and how you accomplish things in your company.

Knowing your objectives, what software and hardware you currently use, and how you do things in your business, your ERP advisor can narrow down your ERP options. Next, they can conduct in-depth research on the systems they’ve shortlisted and evaluate the following, among other things:

       The compatibility of individual system options with your existing setup

       The complexity or simplicity of these solutions when implemented in your organization

       The potential problems and workarounds, if any

       The extent of changes required for successful implementation

Your ERP project advisor will perform the essential due diligence to ensure you implement an ERP solution that perfectly matches your commitment, needs and requirements. This increases the probability of ERP implementation success.

4.  Poor Operationalization and Change Management

Even if the solution is an excellent match for a company, ERP implementation can fail if the new processes and workflows are not adequately operationalized and the people are not properly trained to use the new system. Standard operating procedures must be established to enforce compliance, and employees must have been relentlessly trained until the new processes become second nature.

ERP project advisors can help. They can manage your end-to-end ERP transformation to ensure a successful transition.

Independent ERP Project Advisory Is Essential

ERP is a proven method for unlocking efficiencies and capturing business value. However, ERP implementation can fail for many reasons. Business consultants in the UAE who specialize in ERP projects can help you ensure your ERP transformation project goes off without a hitch and is completed successfully.

Remember that hiring an independent ERP advisor is not an extra expense but an essential requirement. To paraphrase Benjamin Franklin, “For the want of a nail… the battle was lost.” You don’t really want to be the warning that exemplifies what Franklin said, do you? The cost of ERP project advisory is nothing compared to the losses you incur if your ERP implementation fails.