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In Parts 1 and 2, we addressed the importance of clear objectives, change management, data migration, scalability, governance, and performance management in achieving ERP success. Now, in Part 3, we shift our focus to post-implementation challenges and strategies for sustaining success in ERP adoption.
While customization may seem like a solution to tailor ERP systems to specific needs, it often introduces complexity and risks. Over-customization can lead to higher costs, longer implementation times, and difficulties in system maintenance and upgrades. Organizations should carefully evaluate the trade-offs between customization and standardization, opting for configurations that align closely with best practices and industry standards.
Effective training and user adoption are critical for realizing the full potential of ERP systems. However, many organizations underestimate the importance of ongoing training and support, leading to underutilization and dissatisfaction among users. To address this challenge, organizations should invest in comprehensive training programs, user-friendly interfaces, and continuous support mechanisms, empowering users to leverage ERP functionalities effectively in their day-to-day operations.
With increasing regulatory requirements and cybersecurity threats, ensuring compliance and security in ERP systems is paramount. Failure to address compliance and security risks can result in legal liabilities, financial losses, and reputational damage. Organizations should implement robust security measures, conduct regular compliance audits, and stay abreast of regulatory changes to mitigate risks and safeguard sensitive data and processes.
ERP adoption is not a one-time event but an ongoing journey of continuous improvement and innovation. Organizations must foster a culture of innovation, agility, and adaptability to stay ahead of competition and market dynamics. By embracing emerging technologies, leveraging analytics insights, and soliciting feedback from users and stakeholders, organizations can drive continuous improvement and innovation in their ERP ecosystems.
Let’s talk about strategies for maintaining long-term success with ERP systems. One area that often gets overlooked is whether customers are truly getting the best possible solutions tailored to their needs. The answer to this depends largely on the customers’ expectations and how Value-Added Resellers (VARs) approach the situation.
If a customer is looking for a solution that accommodates future growth and leverages staff competencies, we might encounter issues with how some resellers handle 3rd party options. Many vendors encourage resellers to stick with endorsed Independent Software Vendors (ISVs) or even proprietary “white label” add-ons, offering incentives and bonuses for doing so. However, these choices may not always align with what’s best for the customer.
So, what if these applications are not in the best interest for the VAR to promote to their customer or new prospect. We could see a few months down the track there are shortfalls in the customers expectations as compared to what was installed and trained on by their reseller. There is a rational by resellers that it is not feasible to aim for “best of breed” because the reseller may not have the capacity to take on a lot of 3rd Party applications, understand their value and implement them. In today’s world, the expectation is to provide customers with the best-matched third-party applications tailored to their specific industry.
This argument probably applied ten to twenty years ago but the response to that argument could be more and more ISVs, not only provide the pre-sales demonstration, but also, the quotations, installation, support and post support for both the reseller and the customer. This means the reseller just has to understand the feature difference between one “almost perfect 3rd party application” compared to “the perfect” application, in a case-by-case situation. We are seeing more and more astute resellers going down this path to better compete against larger resellers that do have the internal capacity.
On a positive note, BeyondERPtech has recently introduced the successful Audit Question Sampler and is developing an intelligent ‘Solutions Finder Tool’ specifically for Sage 300 VARs and ISVs. This initiative will soon extend to other ERP vendors, allowing ISVs to participate and offer their best solutions more effectively. Imagine having the ultimate tool to help VARs build a solution for their prospect that is exceeding their expectations by delivering over 90% of what they need, rather than just settling for 40% to 89%.
In today’s competitive market, savvy resellers are recognizing the benefits of this approach, helping them stand out against larger competitors with more extensive internal capabilities.
Sustaining success in ERP adoption requires organizations to consider all the areas discussed in Parts 1, 2 and now 3 plus the post-implementation challenges. Effectively, including customization risks, training and user adoption, regulatory compliance and security, and continuous improvement and innovation. By adopting a proactive, comprehensive approach to ERP management, businesses can maximize their ERP investments and maintain competitiveness in a dynamic business environment.
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