Training For The Installation Of A New ERP System

Oct 28, 2015

Our recent cost accounting seminar was attended by several software consultants experienced in the sale and installation of comprehensive ERP software packages. In addition, a number of other participants had recently experienced the process of selecting a new ERP system or were getting ready to begin installation. As a result, there was substantial conversation concerning the problems and opportunities that went along with the installation of a new software package. These exchanges were not limited to just costing principles, but also all discussing the various functions today’s comprehensive ERP systems may provide. After a lengthy discussion, the group arrived at the consensus that most ERP systems are implemented poorly and without adequate training for the purchasing business. The shortfall was not evident in the training offered at the onset of the process. Most participants agreed this training was adequate. However, six months to a year after the software became live is when the group believed additional training was essential. It was then that the new users had a partial understanding of how the software was to function. Fundamental questions as to how to deal with certain problems and issues were not clearly defined in the early training regiment.

Several of the software consultants in the room offered explanations from their experience. They argued most business owners recognized the importance for initial training, however, subsequent training was viewed as less valuable and therefore not required.

One of the software consultants described how every quote he prepares includes both initial training and then additional instruction, often times six months to a year later. However, when negotiating cost with business owners, subsequent training is more often than not the first thing to be eliminated in an effort to cut costs. Considering that most new implementers of ERP systems only use 20-30% of the systems capabilities initially as a result of lack of familiarity, this continuing education is essential to the overall success of a new ERP system.

It would seem to me that as business owners consider the costs and benefits of a new ERP system, the subsequent training must be included with the entire package to gain the maximum benefit. Without this additional training, the unanswered questions and implemented processes will never be fully available to the company and therefore, they will miss part of the real benefits associated with implementing this new ERP system.

Categories: Cost Accounting