How ERP Training Impacts ROI and Bottom Lines
ERP can be one of the biggest investments a company makes. Correct or incorrect use of an ERP system impacts Return on Investment (ROI), as well as every ERP touch point. The efficient handling of customer inquiries, responsiveness with day to day requests, accuracy of information on upward to important management decisions all require timely access to accurate information housed within an ERP system. Why then does management often undermine the value of ERP training during implementation, or after as a refresher course?
Reducing time spent on ERP training may seem like a good cost cutting strategy as everyone has access to online help and maybe a local user group, plus most have used an ERP system before. Research however shows that poor ERP training diminishes the Return of Investment (ROI) of an ERP system. To take this one step further, budgeting for training can actually save your company money.
2 of 5 Top Best-in-Class Strategies Concern ERP Training
Nick Castellina, Senior Research Analyst with Aberdeen Group, a leading research organization, reported in Managing ERP Implementation Projects to Deliver Increased ROI, that two of the top five strategies that helped Best-in-Class organizations make the most of their ERP investment concerned training. Investing in ERP training meant that companies were:
- Up and running faster
- Spending less on their implementation
- More likely to complete their ERP project on time.
The Best-in-Class are more likely to both integrate ERP training with daily business processes as well as create a formal ERP education plan for employees.
According to Aberdeen, training resulted in Best-of-Class organizations reaching their ROI twice as fast as the industry average, and almost 7x faster than laggards. ERP training meant lower implementation costs as well with the percentage of original budget spent on ERP being under budget for Best-in-Class organizations in comparison to the industry average coming in at 16% over budget. Laggards were the worst of budget offenders, coming in at 53% over budget. One can therefore deduce that an organizations perception of ERP success is directly related to ERP training.
The Return on Investment (ROI) organizations gain from ERP training can include:
- Improved metrics leading to better insight and smarter decisions
- Identification through insight for best growth strategies
- Tighter financial controls and higher profit margins
- Ability to proactively respond to supply and demand changes
- More accurate quoting and on-time delivery
- Improved efficiencies and customer service
- Greater overall competitiveness.
Refresher ERP Training Courses Fight off Inefficiencies
ERP training helps ensure employees are using an ERP system to its fullest potential. Refresher courses keep lazy habits from developing and also help new employees learn how to use the software correctly from the start.
ERP training also educates employees on how the correct use of an ERP system can have a positive impact on their daily work tasks, again reinforcing good habits. If an ERP system is used correctly, daily work tasks should be streamlined for gains in efficiencies and higher levels of productivity. Efficient operations means cost savings, happier customers and a more competitive organization. ERP training is therefore not an area for cost cutting as the benefits of using an ERP system correctly outweigh the costs of training.
If you would like more information on training your team on Epicor ERP or Epicor Enterprise, or have questions about identifying an ERP solution for your business, please contact MIS, a top-tier Epicor Gold partner, at our corporate office, MIS Consulting & Sales, Inc. or our Canadian office, MIS Solutions Canada, ULC. Our seasoned consultants will assess the strengths and knowledge gaps of your team and provide customized training on-site or remotely to help you maximize your ROI with Epicor ERP and Epicor Enterprise.