Fortunately, major problems or total failures are not the rule with ERP systems. Nevertheless, the day comes when the screen goes dark and work has to be done without the support of the software. Even if such incidents cannot be avoided directly, a company can 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 damage costs are estimated at 380,000 euros per year. Of course, this also depends on the industry and the company. However, this figure is and remains unpleasantly impressive. However, it is understandable, given the importance of IT, regardless of the sector or company. But no technology, no matter how useful, can be used 100 % risk-free. Therefore, a company must at least once assume the worst case scenario and take precautionary measures in dealing with customers and suppliers without an ERP system.
Provision for ERP failure
This approach is often referred to as business continuity management. Here, those responsible develop targeted strategies that can take effect in the event of an ERP failure and thus prevent greater damage to the company. A kind of risk management when the risk is no longer a risk, but the fears actually occur.
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 operations running in the company. The next step is to define the strategies how these processes can be carried out without ERP system can be supported.
Other possible measures that can support the corresponding 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
In addition, failures can be avoided by taking appropriate precautions. These include mutual control 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 measures taken prevent the risk of an ERP failure and the corresponding consequences. The improvements to the system thus pay for themselves quickly and are reflected in satisfied customers.
Software validation in medical technology
Netting and creditors with debit balances
SAP Business One Partner – the right one is important
Data migration in ERP projects
ERP upgrade – at some point it will be time
