3 possible ERP implementation errors manufacturers should address

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Manufacturing enterprise resource planning technology possesses immense potential, giving producers the power to develop and deploy automated processes that transform all areas of the operation, from the back office to loading dock. However, these solutions come with some risk. ERP implementation requires considerable financial investment and manpower. When serious complications arise during this stage, these once worthwhile investments devolve into resource drains. More than 70 percent of the businesses that adopted ERP systems in 2017 saw such overruns, according to analysts at Panorama Consulting Solutions. Even more disturbingly, 26 percent of firms saw their efforts crash and burn and end in failure due to implementation problems. 

With these unsavory outcomes in mind, manufacturing companies should familiarize themselves with the common pitfalls that line the road to ERP adoption and tackle these hazards ahead of time. Here are three of those familiar ERP implementation problems and the strategies many producers are using to address them:

1. Ineffective product configurations and features
ERP platforms are, by now, common in numerous industries. For example, well over 200,000 businesses are currently taking advantage of the Microsoft Dynamics suite, according to user data obtained by ERP Software Blog. Implementation leaders understand this and logically assume that most vendors support common operational activities in order to remain competitive within a robust industry. In reality, many software providers offer solutions that do not include key components needed for certain manufacturing scenarios, Panorama Consulting found. Many made-to-order and engineered-to-order firms form relationships with vendors with offerings that either lack product configuration engines or include weak components of this kind. Manufacturers that end up selecting such deficient systems due to pricing or the allure of other features find themselves overseeing ineffective ERP systems that do little to catalyze growth.

Manufacturers can easily avoid this pitfall by developing robust requirement lists and carefully vetting potential vendors, CIO reported. These strategies may seem simple but many businesses in the manufacturing space fail to take them seriously or disregard them altogether in effort to pinpoint the cheapest software available.

2. Inadequate training practices
Employee training programs are absolutely critical to ERP success, as employees must know how to properly navigate such technology before they leverage it in their day-to-day work and ultimately drive return on investment. Unfortunately, a large number of adopters fail to grasp the correlation between training and system efficacy, believing users will simply pick up ERP software on the fly. This is an immensely unrealistic and damaging misconception. ERP platforms transform entire businesses and workers should be prepared to weather this change via instructional resources. Adopters that fail to address change management see organization-wide user attrition and experience complete ERP failure.

Manufacturers must prevent this kind of situation from developing by creating strong training offerings. Ideally, these resources should relate directly to daily business processes, according to researchers at the Aberdeen Group.

3. Failure to communicate
Manufacturing executives and information technology stakeholders eyeing ERP implementation are often tempted to launch headlong into the process in an effort to achieve operational gains as soon as possible. In the rush to revolutionize their shop floors, many forego internal announcements, believing that employee communications can wait until deployment is nearer. However, this kind of top-down implementation strategy often creates internal divides that can lay the groundwork for user resentment, attrition and ERP failure, CIO reported. 

Again, this is an easy-to-prevent outcome. Project leaders should involve employees in the ERP selection process from the very beginning and connect with them often as implementation unfolds. With such communication channels in place, manufacturers pursuing ERP technology can expect to install systems that are user-approved and ultimately effective. 

Is your manufacturing firm in need of ERP software that meets the needs of employees, comes equipped with training resources and includes features designed to support modern production methods? Connect with Accent Software. We deploy top-of-the-line manufacturing ERP solutions that meet all of these requirements. And, as a certified Microsoft Business Solutions partner, we also provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturing businesses the power to streamline their backend systems, boost productivity and bolster their bottom lines. Reach out to learn more about how our offerings can revolutionize your enterprise, from the back office to the shop floor.

  

ERP predictions for 2018 [Video]

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With the new year here, there has never been a better time to take advantage of enterprise resource planning software. Here's what experts are saying to expect for ERP in 2018:

For starters, say hello to the cloud. It seems like everything is headed there, and it looks like more cloud-based ERP offerings will become available in the months ahead.

Second, more organizations will abandon their legacy ERP systems. We're nearly two decades into the twenty-first-century and companies are realizing they have to make the transition if their previous products just don't cut it anymore.

Finally, expect more companies to invest in digital transformation initiatives, a move that may lead them to revamp their enteprise system strategies.

Here's to an exciting year for ERP software and enterprise technology! Until next time!

Variables Every Manufacturer Should Consider Before ERP Adoption

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Companies that don't consider all the variables before integrating enterprise resource planning (ERP) could find that it may not live up to their expectations.

The first question a prudent manufacturer should ask itself when considering an ERP software solution is what it actually needs. ERP solutions come in a myriad of different shapes and sizes so companies should think carefully about their specific requirements. The road to successful ERP integration is filled with potholes for the unwary, some of which will not become apparent until it is potentially too late.

Module And Vendor Selection

An ERP system has a vast number of functional areas which are often grouped together as modules. These modules cover all elements of business operations and have been designed to enhance efficiency in the workplace.

Not every company integrates every module, rather they can pick and choose the modules that best suit individual needs. A manufacturer, for instance, will have different requirements than a retail operation, which puts the onus on the internal decision-makers to pick the right software fit. Understanding what a ERP software solution needs to do becomes a critical component, as highlighted by a recent TechTarget article. 

ERP software is designed to reduce pain points.ERP software is designed to reduce pain points.

One important variable to consider from the start is the ERP vendor landscape itself.

According to Gartner, global IT spending will be around $3.7 billion in 2018, with a significant chunk of that money channeled toward enterprise-centric software. With that in mind, the vendor marketplace can be a minefield for companies that don't undertake a Strength, Weakness, Opportunity and Threat (SWOT) analysis on their current operations before they look at ERP software options. 

Functionality Is Key

Another way to think about potential ERP software adoption is to compare it to a company Facebook page. When the social network opened its doors to the world in 2007, enterprises of all sizes rushed to create their own pages. Back then, Facebook was still a relative novelty but it did give brands a direct link to a growing customer base. That was the theory, anyway.

Yes, companies probably needed a Facebook page, but it was very rare that people actually had a clear idea of why. An unvisited page is relatively pointless, irrespective of what social media influencers believe. An ERP solution that doesn't function as it is supposed to or fails to add actual value to staff work processes will also become unloved and unwanted.The integration of ERP software is supposed to enhance business practices and reduce pain points, linked variables that must be considered from day one. 

Customization

Finally, there is the question of customization. An off-the-shelf product may not be sufficient for some companies and the natural inclination will be to integrate a customized ERP system. The majority of ERP implementations do have some element of being built to fit, but there is a consensus that organizations that start down the customization track don't appreciate that it can undermine the effectiveness of the software and even cost more in the long run when it comes time to upgrade. In other words, if you can limit the scope of this necessary evil, it becomes more likely that the integration will be successful.  

The inescapable truth is that software has eaten the world, so much so that it is ubiquitous in almost every aspect of our daily lives. The caveat is that people now expect the software they use in a workplace to function at the same level as programs they use when they are sitting at home. 

That is not a bad thing. The digital transformation of society has made life better for millions of people, so it makes sense that companies would want to augment their business practices with software that will streamline operations and keep the bottom line ticking over. An ERP integration is a unique challenge, but one that will allow the company to compete on a level playing field.

Are Your Executives Engaged In Your Potential ERP Initiative?

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As software continues on its mission to meet the demands of an ever-changing world, business leaders are cognizant that digital transformation is not a question of if but when. A recent survey of 2,216 executives by PricewaterhouseCoopers said that 80 percent of respondents believe identifying opportunities to digitize the company is critical to its future success, with the onus on developing a digital IQ in every corner of the organization.

What is clear is that any potential digital initiative, such as the integration of enterprise resource planning software or any number of business efficiency tools must be supported from the top down. ERP software, for example, will have a significant effect on how a company operates, especially if that organization is transitioning to a more cloud-based work environment.

Executives Must Understand A Digital Ecosystem

In the last 10 years, the idea of an enterprise-wide digital IQ has become more prevalent. PwC defines this business tool as "the measurement of an organization's abilities to harness and profit from technology," an indicator of success which encompasses both internal systems and the company's engagement with customers.

Two years ago, a similar survey by PwC said that 67 percent of respondents thought that their companies had strong digital IQ. Logic would seemingly dictate that this number will continue to rise as more digital investments are made, but it appears not to be the case. In 2016, for example, that figure had dropped to around 52 percent among executives and decision-makers, with the 2017 report noting that the definition of what a digital transformation involves varies from company to company.

"The days of a purely on-site workforce are long gone."

In addition, the connected society has accelerated the need for those at the top to understand the importance of the digital ecosystem. The days of a purely on-site workforce are long gone, replaced by a mobile and remote employee base, made up of individuals who can tap into the company's systems at any time. At the same time, the effectiveness of these integrated systems is predicated on how engaged executives are in both the initial implementation and subsequent integration phase.

A successful ERP integration will increase the availability of information, improve productivity, reduce direct operating or labor costs and allow for more interaction between internal teams and external customers. Organizations that have a dedicated chief information officer, for instance, will be more likely to support the initiative from the top down, which will allow vendors (with the support of an IT team, naturally) to deliver the business goals required for success.

Planning For Success

Decision-makers have to make sure that every level of the organization knows what the digital roadmap will be and, importantly, ensure that the technology initiative is leveraged in such a way that it becomes both seamless and scalable. In other words, an executive team must rethink how the the company defines and delivers digital experiences, creating a culture of tech innovation and adoption that can bolster the balance sheet.

One caveat to take into account is that decision-makers may be under the impression that their involvement ends when they sign the check. However, this is often not the case. Buying-in to a digital initiative is merely the first step. More often than not, the transformation will require the company to expand and improve the aforementioned digital IQ via executive decisions that will have a trickle-down effect on the rest of the workforce. And that is where the fun begins.

Accent Software has been deploying ERP solutions for over 15 years. As a certified Microsoft Business Solutions partner, we provide a range of vendor-vetted Microsoft Dynamics NAV implementation services that allow companies to streamline backend systems, increase productivity and maintain a healthy bottom line.

Learn more about Accent Software today!

Quick strategies for selecting an ERP vendor [Video]

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Selecting an enterprise resource planning vendor is an immensely important task. These software providers are responsible for developing, deploying and supporting backend systems vital to operational success. Consequently, adopters should tread carefully when reviewing vendors and find partners that can deliver. Here are some quick strategies achieving this aim:

In addition to assessing the technological capabilities of possible partners, companies navigating the E-R-P vendor selection process should evaluate their industry knowledge, as this insight comes in handy during implementation. Responsiveness is another key quality adopters must consider, especially those who need extensive end-user support. Lastly, requesting references should be an essential part of any E-R-P vendor selection workflow.

Companies that use these strategies can find E-R-P providers who have the solutions and services needed to catalyze operational transformation.

Key scheduling features every ERP should have

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The Manufacturing Enterprise Solutions Association in 2006 connected with more than 130 manufacturing stakeholders at organizations across the country and asked these production professionals to cite the key performance indicators they use most in their operations. More than 70 percent of respondents attested to utilizing "on-time-delivery-to-customer-request" and "on-time-delivery-to-commit" metrics – two performance measures dependent on effective scheduling.

These figures encapsulate the priorities of modern manufacturing organizations, most of which carefully plan production activities to meet the ever-growing demands of the post-Amazon customer. When adopting new enterprise resource planning technology, these firms must therefore pinpoint vendors that offer solutions equipped with ample scheduling components. What might these be? Here are some of the key scheduling features every ERP solution should have:

Special project management
Market segmentation continues to intensify. Every day, new groups and subgroups of consumers form, forcing manufacturers to take on smaller, more unique jobs. Consequently, many ERP software providers are rolling out products that take this development into account by facilitating one-off project design and management, according to TechTarget. These scheduling modules allow production stakeholders to allocate the required resources toward orders for niche customers and schedule these specialized jobs to move forward, even as larger projects take place in the background. Special project management tools also come equipped with partitioned accounting tools so chief financial officers and other accounting personnel can easily track the costs that come along with one-off assignments.

Finite and infinite scheduling
Manufacturers leverage two central scheduling methodologies: finite and infinite. The first strategy, sometimes called finite capacity scheduling, involves developing production workflows that reflect the amount of work that can be completed depending on preestablished timelines and the availability of finite resources, such as shop-floor equipment with mechanical limitations, TechTarget reported. Operational stakeholders utilizing this methodology often leverage decision support modules within ERP software to create ideal finite scheduling strategies. The second approach entails scheduling work based on the inventory of infinite resources such as staff, according to IT Toolbox. Theoretically, production leaders could schedule personnel to work around the clock, making physical employees an ever-available commodity. 

The best ERP solutions offer scheduling features that can address both of these models and build production calendars based on both finite and infinite resources. Most organizations develop schedules that include a mix of both asset types and should therefore be able to depend on their backend technology to understand the difference between the two and schedule productions workloads accordingly.

Purchasing and procurement
No matter the amount of man or machine power a manufacturer may possess, no work gets completed unless there are physical raw materials on hand. Of course, these components do not just materialize out of thin air – procurement professionals must work with external suppliers to get essential products through the door and onto the line in time to meet existing ship dates. Specialized ERP scheduling modules often buttress this bit of logistical strategy, giving procurement teams the power to coordinate supplier schedules with internal production targets, according to IT Toolbox. And, in most cases, these features also support internal resource issuance processes, ensuring that operational leaders use available materials effectively so as not to create compound scheduling issues.

Manufacturing firms navigating the ERP market would be wise to focus on systems that offer these key scheduling features. Here at Accent Software, we deploy ERP solutions that come equipped with such central components. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving industrial businesses the power to streamline their backend systems, boost productivity and bolster their bottom lines. Reach out to learn more about how our offerings can revolutionize your enterprise, from the back office to the shop floor. 

Quick tips for selecting an ERP vendor [Video]

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Selecting an enterprise resource planning vendor is an immensely important task. These software providers are responsible for developing, deploying and supporting backend systems vital to operational success. Consequently, adopters should tread carefully when reviewing vendors and find partners that can deliver. Here are some quick strategies achieving this aim:

In addition to assessing the technological capabilities of possible partners, companies navigating the E-R-P vendor selection process should evaluate their industry knowledge, as this insight comes in handy during implementation. Responsiveness is another key quality adopters must consider, especially those who need extensive end-user support. Lastly, requesting references should be an essential part of any E-R-P vendor selection workflow.

Companies that use these strategies can find E-R-P providers who have the solutions and services needed to catalyze operational transformation.

Why automated job costing is more important than ever

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The global market for industrial control and factory automation is expected to surpass the $155 billion mark by the end of 2017 and move upward to more than $239 billion by 2023, according to research from MarketsandMarkets. Why is this sector experiencing so much growth? Manufacturers everywhere are actively embracing the core tenet of Industry 4.0: automation. An estimated 1.8 million industrial robots are in operation in factories around the world, according to the International Federation for Robotics. Analysts for the organization believe this figure will increase to more than 3 million within the next three years, as cutting-edge corporations here and abroad adopt automated workflows designed to bolster productivity.

Of course, robots do not drive progress in isolation. Businesses must automate ancillary industrial activities and processes to match the world-class efficiency these machines are capable of achieving. As a result, many firms are adopting advanced software meant to streamline everyday enterprise practices, including job costing. Manufacturers of all sizes use this methodology to right-size their operations and forecast the production expenses that come with each and every order, TechTarget reported. Manufacturing organizations on the path to adopting large-scale automated technology like robotic production equipment or simply exploring initial options should consider installing advanced software that automates the job costing process. These solutions not only represent the first phase in the journey toward complete industrial automation but also facilitate short-term operational benefits that can catalyze short-term gains. Here are some of the more immediate advantages that come with adopting automated job costing software:

Easing the administrative burden
Companies with traditional job costing operations rely on human-driven workflows. Employees drive these processes, which normally involve multiple steps, starting with job identification, according to BizFluent. During this phase, job costing personnel identify an upcoming order. With this baseline data in hand, they then determine the direct costs associated with the job – a figure that includes material, manpower and other variables. They then assess indirect expenses using an established allocation rate, and then calculate a final cost, along with a revenue projection. This process can take considerable time, especially when it involves manual practices.

Automated job costing software offers a streamlined, computer-driven workflow that emphasizes speed. Instead of navigating multiple systems or working out job costs manually, operational personnel can easily access the integrated financial data they need to offer sound job cost projections.

Improving accuracy
Accuracy is, of course, essential when it comes to job costing. Manufacturers must go into every project with reliable figures or risk drastically overspending. The manual processes do not facilitate the kind of fiscal precision required to effectively determine job costs, as they are human-driven and thus susceptible to human error. Automated job costing software takes this risk out of the equation, allowing industrial firms to assess project expenses with confidence via integrated, powerful accounting modules. 

Reducing costs
Businesses that adopt automated job costing software and manage to achieve the benefits described above normally also experience operating cost decreases. With their administrative burdens reduced, workers can reallocate their energy toward activities that grow revenue and away from non-value-adding practices, which can cost $2,400 per activity per year. Of course, increased job costing accuracy lays the groundwork for additional cost savings, as operational personnel can churn out reliable projections that offer correct materials, production and staffing figures. 

With the pace of manufacturing automation quickening, it is essential that firms in the industrial space do all they can to optimize their workflows, including those related to seemingly unremarkable tasks such as job costing.   

Is your manufacturing organization interested in putting into place software that supports these improvements? Connect with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving industrial businesses the power to streamline their backend systems, boost productivity and bolster their bottom lines. Reach out to learn more about how our offerings can revolutionize your enterprise, from the back office to the shop floor.  

Strategies for avoiding an ERP user engagement disaster

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Numerous pitfalls can materialize during the enterprise resource planning implementation process. From flagging executive engagement and support to outright vendor dysfunction, myriad risks have the potential to arise. However, few of these hazards can prove as disastrous as user apathy or resistance. When employees fail to embrace new ERP solutions or actively avoid them post-implementation, the likelihood of project failure rises significantly. In 2016, more than one-quarter of the organizations that embarked on ERP implementations ultimately failed, according to research from Panorama Consulting. It is likely that these outcomes directly correlated to flawed change management techniques, especially those related to end users.

Businesses can void project failure due to lacking employee engagement by implementing user-friendly planning processes and workflows that empower end users and pave the way for long-term ERP success. Here are some of the most effective strategies for accomplishing this lofty yet important goal:

Focus on communication
Like most large-scale enterprise projects, ERP implementation unfolds from the top down as executive leaders offer funding and support, and carefully-chosen cross-functional operational teams execute on the ground floor. This arrangement creates an internal barrier between employees heavily involved in implementation activities and others focused on everyday business concerns. While perfectly logical, this natural division of labor can lead to communication issues that can fester over time and eventually lay the groundwork for employee resistance, according to TechTarget.

Implementation teams can overcome these problems and stave off user engagement disasters by developing and deploying detailed communication plans that keep workers not involved in ERP activities in the loop. These project groups must consistently reach out to their colleagues and offer updates on their progress, as well as field any questions or listen to any suggestions eventual end users might have. In the end, open communication channels help bolster engagement throughout the ERP implementation process and reduce the likelihood of project-killing internal resistance.

Provide effective training
ERP implementation catalyzes organization-wide transformation. As a result, workers must drastically reconfigure their workflows to accommodate system usage. For employees – especially those who have been entrenched in the business for some time – handling such a sea change is no easy task. These individuals need support from ERP project teams in order to embrace new processes and leverage them to generate gains in efficiency and productivity. Should this help never materialize, most are perfectly comfortable returning to their previous workflows and leaving new ERP technology untouched.

Businesses can avoid this unique brand of user engagement failure by providing training resources and working with employees to understand and grapple with change, according to Deloitte. In addition to developing detailed instructional guides for navigating new technology and facilitating real-time support options, project teams should map out how ERP implementation affects each and every role within the organization. This exercise places the topic of user engagement front and center, and provides a guide for all activities centered on this important subject.

Add an element of fun
While exciting, ERP implementation is rarely fun, especially for nervous end users dealing with project-related disruptions and the prospect of completely changing how they work on a daily basis. However, the internal teams tasked with installing new ERP platforms can add an element of whimsy to the process to raise spirits and prevent building workplace pressure from combusting into full-blown user revolt, ERP Focus reported. How? Many organizations embrace gameified employee engagement tactics that not only facilitate fun but also contribute to implementation efforts. For instance, many roll out pre-launch system-continuity challenges where users attempt to test the limits of new ERP technology. This kind of activity allows workers to blow off steam and offers usable feedback that project teams can use to improve the end product.

Strategies such as these can help enterprises navigating the ERP implementation journey avoid user engagement disaster and implement solutions that generate healthy return on investment. Here at Accent Software, we develop ERP products that do just that. As a certified Microsoft Business Solutions partner, we provide vendor-vetted services and solutions, rolling out transformative ERP installations capable of boosting productivity and bolstering bottom lines. Connect with Accent Software to learn more about our offerings.  

The evolution of Microsoft Dynamics NAV

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Last month, Microsoft announced the arrival of its new-and-improved Microsoft Dynamics NAV platform during the Directions North America conference in Orlando, according to ZDNet. This updated iteration, codenamed "Tenerife," represents another step in the evolution of a powerful product that continues to move forward with the marketplace.

The roots of NAV
In 1984, Technical University of Denmark students Jesper Balser, Peter Bang and Torben Wind developed and released PC Plus, an application that allowed organizations to track accounting and warehousing operations, according to ERP Software Blog. The three software developers built out the solution over the next three years and in 1987 launched NAV, which became the first enterprise resource planning solution to leverage client-server functionality. IBM went on to invest in the application, launching a proprietary platform called IBM-Navigator.

Balser, Bang and Wind eventually launched their own company, called Navision, and began distributing their solution independently, developing an enterprise user base that stretched across Denmark. In 1990, the trio debuted an updated version based on the AL language. This digital dialect gave users and implementation partners the power to customize NAV installations via more than 1500 modular components.

American businesses started implementing NAV in 1994 using a disk operating system. Within a few years, the product became ubiquitous in the states. Adoption accelerated with the release of the third iteration of NAV, which featured cutting-edge data storage and management tools that supported databases that could hold accounting, distribution and manufacturing information. During the late 1990s, Navision rolled out Microsoft integration capabilities in an effort to court the growing number of enterprise Windows users.

In May 2002, Microsoft acquired Navision for an estimated $1.3 billion, CRN reported. The Redwood, Washington-based firm integrated the Danish software provider into its Business Solutions division.

NAV under Microsoft
Soon after its acquisition of Navision, Microsoft launched an internal ERP product development initiative called "Project Green," according to Redmond Channel Partner. In September 2005, the technology giant announced that it intended to split the all-in-one solution developed under "Project Green" into multiple products designed for small-to-medium-sized businesses bearing the Dynamics moniker, including Microsoft Dynamics NAV.

"We have designed the next generation of our business solutions, which we're calling Dynamics, around 50 of the most common roles in a midsize company," then Microsoft CEO Steve Ballmer told the publication. "These solutions expose and connect the specific activities, processes and reports people need for real jobs inside a company, whether they're the president, the finance manager, the warehouse worker or the support clerk."

In the years since, Microsoft has updated the product numerous times, expanding its functionality to match the needs of ever-evolving organizations. Now, an estimated 110,000 companies worldwide rely on Dynamics NAV, according to ERP Software Blog.

In July 2016, Microsoft announced that it would bundle Dynamics NAV with its customer relationship management solution to form the cloud-based application suite Dynamics 365, ZDNet reported. The company also opted to include an ERP accounting add-on, developed under the codename "Project Madeira," with the Software-as-a-Service package. Last month at the Directions North America conference, Microsoft offered more fleshed-out release plans and publicized the "Tenerife" update, which will ultimately replace Dynamics NAV within the new Dynamics 365 suite, according to MSDynamicsWorld.

The solution comes with a number of exciting new updates, most notably, a representational state transfer application programming interface component that gives enterprise users the power to integrate their ERP implementations with Microsoft Graph and Azure Active Directory, as well as other third-party applications. These components constitute the latest evolution of Dynamics NAV, which continues to power businesses across the globe.

Here at Accent Software, we provide world-class Dynamics NAV implementation services for companies of all size. As a certified Microsoft Business Solutions partner, we offer vendor-vetted services, installing transformative solutions capable of boosting productivity and bolstering bottom lines. Connect with Accent Software to learn more about our offerings.