New products in the Life Sciences industry fail to win a significant spot in the market at an alarming rate. And since the costs of bringing a product to market are extremely high – the risk of any missteps can be devastating. Therefore, it makes sense for biotech, pharma, and medical device companies to use every tool at their disposal to ensure they are as prepared as possible. Unfortunately, many companies overlook one of the most versatile tools available to them – their ERP solution.
If you are an early stage and rapidly growing Life Sciences organizations, download this free white paper to learn how Life Sciences ERP systems can help you:
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Did you know that an alarming rate of ERP projects fail to achieve their objectives? Industry leading research analyst firm Gartner puts the failure rate between 55% and 75%.
In today’s competitive environment, companies that are looking to implement new ERP systems must carefully navigate the crowded highway of vendor solutions that are available. Once implemented, the right ERP systems can enhance productivity, encourage growth and increase ROI. First, though, companies have to embark on the journey toward choosing the best ERP system for their businesses.
In its report “Are You Asking The Right Questions When Selecting An ERP System?”, the Aberdeen Group identified the ERP software criteria most commonly used as part of the selection process of top-performing companies. Here is a look at how Microsoft Dynamics AX, SAP Business One, SAP Business ByDesign and SAP All-in-One fare as to Aberdeen’s criteria as well as several others.
Download our Microsoft Dynamics AX vs SAP White Paper.
At one point in time, every business will have to go through the process of implementing a new ERP solution. It may be that the project is the implementation of the first ERP application for your business, or it might be that you are upgrading to a new solution. In either case, there are some things that people often don't realize about ERP implementations that wind up costing them money that they never would have had to spend if they had realized some basic things from the very start. When you look at the statistics that show high numbers of ERP implementation projects running over budget, failing to deliver or taking too long odds are that the reason for the failure is that someone didn’t quite understand some essential aspects of modern ERP solutions.
In a recent study conducted by Mint Jutras, Ease of use, has surpassed traditional criteria such as fit and functionality to evaluate an ERP solution. The more technically inclined would translate this to mean that user experience has become one of the more important evaluation criteria for enterprise resource planning solutions. User experience, or UX, is commonly associated with web design and became a popular term in business when Google announced that UX played a big role in how they ranked web pages in their results. The idea is that if a page is to be relevant, people have to be able to easily access and use it. This same philosophy should be applied to your criteria when evaluating ERP solutions.
Modern day ERP solutions merge data, technology and business operations.
Implementing these systems are a huge undertaking and because of all the moving parts, there are risks associated with this type of project and if they are ignored – there is a good chance that the implementation will fail. For most, these risks are manageable if they are known ahead of time. Identifying what problems may arise and addressing them early will certainly help mitigate them before they become a point of failure for your project.
But just what are some of the common risks you may encounter?
Research from Gartner shows ERP implementation failure rates at anywhere between 55 and 75 percent. That may not appear to be too promising for someone who looking to kick off a new ERP project in their organization. Yet while these numbers may be a bit discouraging, if you look at the reasons why so many of these implementation projects fail you can see that most problems can be avoided if the right implementation partner was brought on board from the beginning. Finding the right partner, however, may seem like a task comparable to finding the right ERP vendor. The process can be a bit easier if you know what to look for.
The implementation of an enterprise resource planning solution in your organization comes with many benefits. Most companies boast standardized processes across the business, improved visibility, lower operating costs and of course easier access to data and improved analytics. However, harnessing the power of an ERP system also means you need to take additional security precautions. Steps need to be taken to secure the data that makes your ERP solution such a valuable tool; and because it becomes such an important part of your business – attackers may try to take it down in order to disrupt your business operations.
To protect sensitive information, many businesses and industries are subject to certain legal regulations and/or compliance requirements. However, these do not help increase security; they merely serve to ensure you are taking the necessary steps to protect the data behind your ERP and other software.
All too often, an enterprise resource planning solution is purchased and the business adapts its processes to work within its boundaries. This could very well be one of the main reasons why, according to Gartner, between 55 and 74 percent of ERP implementations fail.
Rather than purchasing a tool that isnt right for your business needs, and conforming to it; shouldnt you be looking for a vendor that offers a solution that you can configure to meet your needs? Of course, but that means that you need to first understand your own business processes and how your ERP solution will interact with them.