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.
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.
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.
Table of Contents
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.
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.
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:Â 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 plan 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 project failure. So, don’t ever think to say that implementing an ERP System is free from any hassles. They may have researched companies that failed to set up ERP systems. ERP Implementation plan can make your project management more effective and efficient. This is because the ERP system is able to plan all your activities from start to finish. So, your project is far from being a failure.
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.
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.
Determine the team responsible for selecting and evaluating the system. This team usually consists of IT staff, sponsors, internal stakeholders, legal and third parties. Moreover, if possible, each department should have the opportunity to try out the system because the system must adapt to business growth. You can try the free demo to find out the benefits of using an ERP Implementation plan for your business.
Conclusion
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. Schedule a free demo now to experience the transformational power it brings to your operations.
