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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. 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 might be tired of using the system that complicates your work or even completing your tasks manually. 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 ERP system.

Sometimes, it takes months – even years – until your boss finally agrees to implement an ERP system. Unfortunately, the manual works that you pile over the 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 system.

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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 that 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 the qualitative data will make your proposal looks credible.

Show the ROI that the company will get

The ROI in the context of ERP implementation is the metrics 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 is not always in number. There are tangible and intangible benefits. Here are some of them that you can elaborate more 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 staffs are 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
  • Compliance to 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 team 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 more your boss than a project failure. So, don’t even think about saying that to implement 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 consult it to the business consultant before explaining it to your boss.

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.

Conclusion

Those are the 5 tips that you can use to convince your boss to implement ERP. In short, you should talk to them in their languages. Use facts, figures, and visuals to point out your arguments. 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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