Fortunately, major problems or total failures are not the rule with ERP systems. Nevertheless, there comes a day when the screen goes dark and you have to work without the support of the software. Even if such incidents cannot be avoided directly, a company can still prepare for problems caused by an ERP failure.
High costs due to an ERP failure
In order to be able to do this, one should first gain an impression of the consequences of such a failure. The cost of damage is estimated at 380,000 euros per year. Of course, this also depends on the sector and company. However, this figure is and remains unpleasantly impressive. However, it is understandable, given the importance of IT regardless of industry and company. But no technology, no matter how useful, can be used 100 % risk-free. For this reason, a company must at least assume the worst-case scenario and take precautions when dealing with customers and suppliers without an ERP system.
Provision for ERP failure
This approach is often referred to as business continuity management. Those responsible develop targeted strategies that can take effect in the event of an ERP failure and thus prevent major damage to the company. A kind of risk management, if the risk is no longer a risk but the fears actually materialise.
But how exactly is the Business Continuity Method being approached now?
The first step is to define the work processes that are necessary to keep all processes in the company running. The next step is to define the strategies for keeping these processes running without ERP system can be supported.
Other possible measures that can support the relevant processes in the event of an ERP failure are appropriate support facilities for customers and suppliers, practised self-help in various failure scenarios and clear distribution of tasks and cooperation.
Preventing ERP failure
Failures can also be avoided by taking appropriate precautions. These include mutual monitoring of system administrators and users, regular updates to new versions, testing of functions, as well as backup and maintenance of all data.
The additional advantage is that all the measures taken prevent the risk of an ERP failure and the corresponding consequences. The improvements to the system therefore quickly pay for themselves and are reflected in satisfied customers.
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