Infographic: How Not Implementing an ERP Is Costing Your Business
Implementing an ERP can be a daunting prospect for many SMBs. Businesses that haven’t had much experience with introducing an enterprise resource planning solution to their business can find the task especially dauting.
But what are ERP implementation challenges? What issues can organizations which haven’t yet attempted implementing an ERP system consider? For instance, the cost of not having an ERP system in your company may be higher than the investment in one.
Read our infographic to understand the key reasons for a modern SMB to consider implementing ERP, along with respective ERP implementation challenges.
See the infograph in text form below:
How Not Implementing an ERP System Is Costing Your Business
ERPs are becoming an inevitability for SMBs. 95% of businesses saw process improvement after implementing an ERP system, for instance. Additionally, 82% of surveyed companies achieved ROI within the expected time frame.
Organizations can’t afford to not have an ERP; here’s why avoiding ERP implementation is costing your business.
What are ERP Implementation Challenges and Why Aren’t Businesses Implementing an ERP?
- Over a quarter of organizations without an ERP believe they are functioning effectively without it. While they may be operating in the same manner as they have always done, they are in fact missing out on all the business and operational opportunities they would have with an ERP.
- ERP implementation challenges include selection timeline (stakeholders spend an average of 17 weeks selecting an ERP), budget concerns (ERP system costs vary per industry), and lack of employee training.
- The top reasons why organizations do not opt for cloud ERP systems include lack of information about ERP system options (41% of businesses), risk of data loss (32%), and data breach risks (27%).
How much is avoiding ERP implementation costing SMBs?
- Organizations using the latest version of an ERP perform better on operational efficiency, reporting and visibility, and growth and competition.
- 93% of organizations report their ERP initiatives as successful. The top areas where ERP produced ROI were reduced IT costs (40%), reduced inventory levels (38%), and reduced cycle time (35%).
- Businesses on the latest version of an ERP are able to access it from mobile devices and make use of integrated analytics, e-commerce support, social business capabilities, and other tools. However, SMBs using older technology can’t do so, which means significant costs in lost opportunities and extra labor.
- Businesses with a remote workforce using ERP systems see increased efficiency. Therefore, the preferred method of ERP deployment is the cloud (63%).
ERP Can’t Wait
The short-term savings of not implementing an ERP system are far outweighed by the benefits of installing a modern solution. ERPs are more necessary and more affordable than ever for SMBs, so even the smallest business can get a system up and running.
Organizations that work with an MSP will have an easier time dealing with ERP challenges. As businesses continue to implement and discover new opportunities with an ERP, it will become an inevitability for every company, no matter how big or small.
Sources: Panorama Consulting. ERP Focus, Software Path
To learn more about ERP solutions for your business and how to begin implementing one, download our helpful eBook, Introduction to Enterprise Resource Planning (ERP).