Question

• What are some of the challenges when trying to implement a new ERP system?
• What Tools/Concepts can be used to overcome these challenges?
• Please discuss risk vs. reward when taking on a new ERP implementation project (Example: Costs vs. Productivity Increases)?
• What king of an ERP system should a FinTech organization implement?

Answer 1

1. Challenges when trying to implement a new ERP system-

Selecting the best fit: There are 500+ ERP softwares in the market, and selecting th one which suits you the best is the first challenge.

Training the employees: Employees might be comfortable with the old ERP system, and might be reluctant to learn new one. Providing adequate training to them is also a challenge.

Implementation cost: Depending on the implementation time, the cost may go high which might become a problem for the company. If there are customizations involved then it may go more higher.

Implementation time : An ERP system is implemented step by step and because it is very standard, it needs to be designed to a particular business, to handle the processes just the way the company needs them.

2. Tools/concepts to overcome these challenges-

Know your business goals: The ERP provider chosen should have experience within your industry, take the time to understand the business and be able to help you meet your business goals. Otherwise, you could end up making a very costly mistake. It is important to ensure you gather enough information about your overall requirements and have open conversations with potential providers,

Commitment from managers: Actively communicate with key personnel and ensure they understand the need for them to be fully involved. Also involving them in the decision-making process will increase the likelihood of commitment.

Employee motivation: Offer your employees full training and ensure they are motivated to use the system

3. Risk v/s rewards-

Risks of ERP Selection, Implementation, and Use

• The IT department should be capable pof such massive swtiching of ERP systems otherwise it could prove to be a failure.
• A large investment in time and money selecting, implementing, learning, and using the system. Even the process of choosing a system can take a year or more.
• There might be a ;ack of implementation support and help if a consultant has not been hired to help with the process.
• There is always a possibility of ERP implementation becoming a failure. The company should not be very optimistic about budget and timelines.

Rewards of ERP Selection, Implementation, and Use

• ERP systems can lead to increase in sales as the sales team can track and follow up with their leads in a timely manner. More sales means more revenue and moreprofit.
• ERP systems can help streamline the processed which will eventually help in cost reduction.
• ERP systems once implemented can be used over a span of time, they are not required to be changed frequently which imlies that the benefits will be derived over a long period of time.
• Now the ERP comes with artificial intelligence which the companies can use to measure the satisfcation of internal employees. When the employees will be happy, the retention rate will be higher.
• ERP can be deployed in a variety of ways. One of those is in the Cloud making it accessible from anywhere. Manufacturing department can track the inventories from anywhere. With cloud, the cost involved are also less.

4. Kind of ERP for a Fintech organization needs-

There are various needs of a Fintech organization which the ERP should be capable of fulfilling.

Automation: The software should help automate all the manual tasks and streamline processes, which will allow FinTech companies to focus more on serious tasks

Transparity: An ERP should be capable of helping the company to efficiently manage accounts and finances. This helps the FinTech company to present itself as a clean and efficient organization to its banking clients. Most banking clients will want to work with a FinTech company that takes care of its own finances and accounts well.

Employee management (HRMS): An ERP should be able to help FinTech companies to manage its staff better and enhance inter-departmental communication.

Customer satisfaction (CRM): ERP should help businesses to serve their clients better. This is especially important in the financial industry, where everything depends on one’s credibility and ability to keep client data secure