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5 Tips to Convince Your Boss to Implement an ERP System

The end of the year is the perfect time for a company to start budgeting, especially if you plan to implement an ERP system. An ERP (Enterprise Resource Planning) system is a set of systems for managing and integrating various operational activities in a business. In the past, a cloud-based ERP software was a system that was more widely used by enterprises, but now it has also been popular among SMEs. The popularity of this system is due to the ERP system providing many benefits for a business.

Download now: HashMicro’s ERP Software Pricing Scheme Calculation

However, sometimes, it’s difficult to find support when you are about to make a massive change in your office, especially from your boss. You may get tired of using systems that complicate your work, and you desperately need a comprehensive ERP system that can complete your tasks automatically. But, these executives would never know what you have been through. That’s probably the reason why they think an ERP system is not necessary. Besides, they might have little knowledge about the benefits of the automated ERP system. Get the ERP software pricing scheme calculation so the budgeting preparation becomes more optimal.

Sometimes, it takes months – even years – until your boss finally agrees to implement an integrated ERP system. Unfortunately, the manual works that you pile over time while you’re busy convincing them will complicate you even further. So, we will give you 5 tips that you can use to convince your boss to get the most complete ERP system.

implement an ERP system

Explain Your Difficulty In Numbers

Your boss, be it the business owner, manager, or executive, speaks number only. So, the anecdote about how difficult your job is will not be enough to convince them. They want to know the impacts of your difficulty on their finance.

For example, how many percentages of customers left your stores because you did not predict, manage, and track the inventory properly? Then, try to compare this percentage with your competitors. Providing them with qualitative data will make your proposal looks credible.

Read also: Achieve Your Business Goals with an Effective Action Plan

Show the ROI the Company Will Get

The ROI in the context of ERP implementation is the metric that can be achieved after investing and using the system. You can easily explain the cost of the ERP but maybe not with the results. It is because the advantages of ERP are not always in number. There are tangible and intangible benefits. Here are some of them that you can elaborate more on to ensure them.

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Tangible benefits

  • Reduced inventory waste thanks to better control and planning.
  • The material cost that lower than previous because of automated and easily monitored procurement.
  • Labor cost does not swell because the staff is allocated well.
  • Improved production process due to good planning and maintained machines.
  • Reduced sales cost.

Intangible benefits

  • Business operations become efficient, transparent, and effective.
  • Inventory stock is accurate with precise predictions.
  • Customer service and delivery are improved.
  • Procedures are standardized.
  • Financial management becomes controlled by accounting software.
  • Compliance with regulations is easier.

Related article: How to Successfully Conduct a Year-End Profit Review

Provide Independent Third Parties

If the points above can strengthen your arguments, this point suggests you present your boss with a third party. They can be business consultants or IT teams who can provide further information about the benefits of ERP and the best plan to implement it.

Their expertise and experience in ERP implementation might assure your boss. You should also make sure that the third parties are independent and not affiliated with any ERP vendors.

Show Your Plan to Minimize Project Risks

Nothing scares your boss more than a project failure. So, don’t even think about saying that implementing an ERP System is free from any disturbance. They might have researched companies that failed in setting up an ERP system.

Instead of hiding the risks, explain to them your risk management plan to identify and mitigate the emerging issues. It’s better if you identify the possible issue and consider consulting the business consultant before explaining it to your boss. In addition, to maximize projects, companies can use good project management software. This system will assist the company in communication, such as the distribution of tasks, accuracy in project completion, and utilization of available resources.

implement an erp system
Source: freepik.com

Read more: Business Plan: Definition, Benefits, and How to Make it Before Building a Business

Choose the Vendor and System Demo

You have prepared your arguments. Next, you should choose the best ERP vendor. Ask them for demos. It’s important because ERP is expensive and it changes your business tremendously. Preparing yourself the lists of vendors will help you explain it to the boss.

Decide the team that is responsible for choosing and evaluating the system. This team usually consists of the IT staff, sponsors, internal stakeholders, legal, and third parties. Moreover, if possible, every department should have a chance to try the system because the system should adapt to business growth.

Download now: HashMicro’s ERP Software Pricing Scheme Calculation

Conclusion

implement an ERP system

Those are the 5 tips that you can use to convince your boss to implement an ERP System. In short, you should talk to them in their languages. Use facts, figures, and visuals to point out your arguments. You should choose the best ERP software and point out its benefits. In this case, you could recommend a complete Hash Core ERP software from HashMicro as it can help your company to streamline the business processes & drive your company’s growth significantly. It can also help the company to create efficiency and productivity in every operational activity through various main features. If they object to you, don’t worry. It’s nothing personal. It’s just technophobia that will heal if you can ensure them well.

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