5 Tips for Implementing ERP in Service Companies

ERP in Service Companies: The need to integrate all data in each division is one reason why the use of ERP is needed in the service sector.

For example, when a sale goes to the front office, the billing, recording, and money receipt systems only need one input so that all divisions get the same information and data in real-time.

In addition, sales journals will also be created automatically based on the transactions that have been made. Thus, the company does not need to input data repeatedly. This makes the company’s work more efficient.

Why ERP is Needed in the Service Sector?

Differences in ERP Implementation of Service & Non-service Companies

The difference between the implementation of ERP for service companies and other companies is the use of a simpler and less complicated system.

This is because service companies do not provide goods in physical form so the company’s logistics process is easy.

When service companies get orders, they can directly forward orders to employees without having to go through the logistics system.

This makes the ERP system for service companies easier and does not require a long ERP implementation timeline process.

As for non-service companies, they must go through the logistics process first to find out the inventory of goods that customers want.

Service companies do not provide goods in physical form … When service companies get orders, they can directly forward orders to employees without having to pass through the logistics system.

What to Pay Attention to When Implementing ERP in a Service Company?

1 Formulate a Clear Goal to Achieve

Before the implementation process begins, companies need to create a precise and clear vision of what the company should do to satisfy customers, empower employees, and facilitate suppliers over the next few years.

In addition, companies also need to consider a clear definition of goals, expectations, and results. After obtaining clear objectives, the company can carefully decide on an ERP system that is suitable for implementation and fits the needs required.

One of the reasons companies fail to implement ERP is the lack of good strategic planning. This causes a mismatch between the ERP system used and the company’s current needs.

Therefore, proper planning and implementation are necessary to increase the strategic value of the company (Ali & Miller, 2017).

2 Provide adequate ERP training to employees

ERP systems are so complex that they demand specialized training. Training in the use of ERP systems is not easy

In addition, ERP system training will be more difficult to implement if company employees are not technology literate (Mahmood et al., 2020).

To achieve successful ERP implementation, companies must facilitate employees to know the use of ERP systems.

The goal is for employees to learn and practice more deeply related to the latest ERP technology.

Through a continuous training process, employees can adjust to the needs of a changing and complex business environment.

In addition, companies need to ensure that the training process is sustainable. A short training process can make it difficult for employees to adapt to the latest system.

ERP systems require regular training so companies must provide opportunities for employees to improve their skills.

The training program can be designed according to the benefits of the ERP system that the company wants to achieve (Mahmood et al., 2020).

When companies pay less attention to employee training regarding ERP systems, problems can occur.

Research shows that without proper training, 30-40% of employees cannot use the new ERP system.

Lack of adequate training can lead to ERP system implementation failure.

3 Coordinate and Communicate with Top Management

During the ERP implementation process, the coordination and communication process is crucial as all stakeholders must be aware of the latest information and project status.

Many companies are implementing effective communication to notify their development plans to stakeholders.

Effective communication contributes positively to the successful implementation of corporate change (Mahmood et al., 2020).

Through effective communication, there is an easier exchange of information between both parties.

Thus, companies can minimise conflicts that may occur during the implementation process (Maditinos et al., 2012).

Meanwhile, poor and ineffective communication can cause resistance from various parties.

In addition, the risk of conflict increases due to misunderstandings on various parties (Mahmood et al., 2020).

4 Choose a Consultant that is Selective and Suitable following Company Objectives

The process of selecting an adequate consultant is a very influential factor in the ERP implementation process.

This process cannot be considered a trivial and time-wasting procedure.

The consultant’s experience in using ERP systems and commitment to accompanying the implementation until the end are very important for the success of ERP implementation (Maditinos et al., 2012).

Companies need to pay attention that the selection of consultants is not only based on having technical skills.

However, the consultant must also have a broad understanding of the business practices being run (Maditinos et al., 2012).

Through the right ERP consultant, the ERP implementation process can run well and get significant success.

The more companies and consultants understand each other’s needs, the more effective the communication process will be during the implementation process.

Inadequate communication between the two parties can potentially fail the ERP system implementation (Maditinos et al., 2012).

Through the right consultant, the ERP implementation process can run well and achieve significant success

5 Prepare Data that is Accurate and Relevant to Company Needs

Accurate data preparation is needed for the ERP system to function properly. The integrated nature of ERP allows someone to enter the wrong data, which can be fatal for the company. In addition, the data to be entered into the ERP system should be by the needs of the company.

Several ERP projects have failed because the company’s employees did not realise the need and benefits of using an ERP system.

The use of a new ERP system certainly requires adjustment for each employee. The length of this adjustment process depends on the company’s culture and attitude towards this system change.

Adjustment may take a long time and employees may become resistant to change (Winarno, 2015).

If employees are resistant to system changes, then the implementation of the ERP system will be difficult to implement because employees tend to feel comfortable with the old system until they consider the new system not useful enough (Winarno, 2015).

Therefore, companies need to train employees on the importance of data accuracy and the correct data entry process. The goal is to prevent errors that hurt the company.

Leave a comment