Picture yourself behind the wheel of your new dream car, complete with advanced cruise control, a high-end infotainment system, enhanced safety features and massaging seats. Yet faced with a daunting 300-page owner’s manual, your excitement starts to fade. After all, what good are these incredible features if you don’t have time to learn how they work and no one shows you how to use them?
The same can be said of enterprise resource planning (ERP) software, the best of which comes equipped with a plethora of sophisticated features meant to enable organizations to manage their daily operations from a single, unified platform. But, as with that souped-up car, training employees on how to take advantage of the system will be key to unleashing its benefits, among them greater operational efficiencies, real-time data visibility, enhanced customer service — and all of the cost savings and revenue-generating activities that ensue.
But remember: ERP training is not a one-size-fits-all endeavor. From accounting to inventory management to human resources and beyond, each department — and the different roles therein — requires customized training, whether in person, online or via another mode. This article explores these finer points of ERP training, the challenges businesses often confront and 10 best practices that will help businesses realize a positive return on their ERP investments.
What Is ERP Training?
ERP systems are the backbone of modern business operations, comprising a comprehensive suite of applications that streamline the flow of information among core business processes. Their scope is broad, touching everything from finance and accounting to human resources, customer relationship management, procurement, inventory management, field services and beyond. The key to unlocking the power of an ERP? In-depth training geared toward different departments and levels of staff. Whether provided by the ERP vendor, in-house staff, a channel partner or a third-party consultant, targeted training is essential for businesses to harness ERP’s extensive capabilities and reap its proverbial rewards.
Key Takeaways
- Employee training unlocks the many benefits of an ERP system.
- Organizations can take advantage of a variety of training methods, from online lessons to in-person workshops.
- ERP training should be customized for each department and the roles within it.
- Challenges include employee resistance and ERP software complexity.
- By applying best practices, companies are likely to see a positive return on their ERP investments.
ERP Training Explained
The ERP market is expected to exceed $49.5 billion by 2025, driven by factors including the increasing adoption of cloud-based ERP solutions; the need for improved efficiency and compliance; and the integration of automation, artificial intelligence and other emerging technologies. To ensure the success of their ERP implementations, organizations must provide a well-rounded training program that considers three main factors:
- Training method(s): In-person groups or individual lessons, webinars, self-guided online courses, simulation training and peer learning are among the many ways companies can deliver training. Selection is often determined by how users learn best, where employees are located and the amount of time organizations can dedicate to training.
- Department needs: The various departments within an organization use ERP software for distinct purposes, such as to automate the financial close process, monitor and replenish inventory, track the sales pipeline and many more use cases. Each process will require its own specialized training.
- Staff needs: Training must also be tailored to individual needs. Administrators, for example, will use an ERP system differently than software developers will. Training various subsets of employees will require customized approaches to achieve each department’s goals.
Simply put, a good training program will instill a clear understanding of how the system works and the proper ways to use it, creating confident employees who see the benefits of the new system and willingly adopt it.
The Importance of ERP Training
No ERP implementation can succeed without pre- and post-launch training that teaches employees how to use the system to its full potential. Once instructed on the ins and outs of the software’s functions and features, employees can be more productive and accurate in their work, freed from having to manually enter, re-enter or track down data housed in separate systems. Training is also a critical part of ERP change management, guiding employees through acceptance of new workflows and processes, policies and responsibilities while easing any fears of being displaced. In addition, lack of or inadequate training and employee support can hurt adoption, hurt productivity and undermine the entire ERP project.
Of course, what’s good for employees is also good for the business. Optimally applied, ERP systems can significantly reduce operational and administrative costs by automating workflows and diminishing the need for manual intervention. They also facilitate real-time financial management by delivering real-time data, which is crucial for timely reporting and accurate budgeting and forecasting, all drivers of business growth.
ERP Training Delivery Methods
Technology has extended the sphere of training from on-site meeting rooms to a variety of digital learning formats that can be accessed remotely and accommodate different learning styles (visual, auditory, etc.). It’s also important to note that some people learn better in small groups or one on one, while others are more comfortable in large group settings.
- Online training is a cost-effective way to reach employees wherever they are, rather than incurring the travel-related expenses and downtime associated with gathering them in one place. Formats include instructor-led virtual classrooms and webinars, learning management systems, interactive simulations and podcasts.
- In-person workshops provide the benefit of face-to-face communication, creating an engaging environment where participants can ask questions while testing out the system. Participants also benefit from personalized feedback and the kind of in-person team-building derived from collaborating with co-workers.
- On-the-job training is designed to help employees learn and apply ERP skills in the context of their specific work environments. Participants have the opportunity to gain valuable hands-on experience as they learn how to navigate and operate the software. This training can also be tailored to address the particular requirements of individual responsibilities.
- Custom training modules align training with employees’ specific job roles and workflows, and often lets them progress at their own pace. Conversely, a one-size-fits-all training approach could lead to learning gaps.
ERP Training for Different Roles
Just as an airline pilot, engineer and air traffic controller each require different knowledge to perform their jobs effectively, those who operate ERP software, such as administrators, managers, IT staff and end users, need to understand the functions most relevant to their responsibilities. This role-specific expertise boosts individual performance and also enhances the overall productivity and efficiency of the organization.
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Administrators
ERP training for administrators focuses on how to configure the system to meet the organization’s requirements, including setting up modules, defining workflows and configuring user permissions. Administrators should learn how to create, modify and deactivate accounts; handle data migration; implement and maintain proper security measures; and monitor and maintain system performance.
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IT Staff and Technical Support
ERP training for IT and technical support staff covers how to manage and support the ERP system within the organization. A cloud-based ERP system significantly lightens their load because the vendor takes care of deployment, configuration and maintenance. The vendor also provides the hardware, troubleshoots any problems and handles security patches and software updates. That said, in-house staff should still keep on top of best practices for securing the system, monitoring system performance and managing an ongoing relationship with the ERP vendor.
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Developers
Developers should possess a solid understanding of the ERP system’s architecture and framework. ERP training for these workers focuses on the necessary programming languages and tools typically used for ERP development, including Java, C#, Python and JavaScript, as well as on how to customize the system to meet specific business needs. Developer training should also cover ERP user-interface and user-experience principles.
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End Users
End users are the employees who need to learn the skills and processes that are central to effectively using the ERP system in their everyday work. They must be proficient in navigating the system to use its various functions, as well as skilled in managing data and performing common workflow tasks, such as processing invoices, allocating inventory, tracking sales leads and creating reports.
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Management
ERP training for company and department managers focuses on how to harness the system for strategic advantage, enabling these leaders to make swift, informed decisions that are supported by real-time data and analytics from across the business. Management also needs to be aware of the ERP’s overall capabilities in relation to the company’s goals and use that knowledge to drive business performance by streamlining operations, forecasting trends, managing risks and, ultimately, contributing to the bottom line.
Common Challenges in ERP Training
Training users on the ins and outs of a new ERP system is an important undertaking, but it’s not without challenges. Anticipating and planning for the following potential hurdles can help companies ease the transition, minimize associated downtime and maximize ROI.
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Resistance to Change
Organizations implement new ERP systems for three main reasons: to replace outdated legacy systems, to consolidate disparate applications and to update to more recent technologies. Yet even when a company’s current systems are slow and cumbersome, employees are often attached to the processes they’re accustomed to and resist the introduction of new ways of working. Their resistance to change may manifest as a lack of motivation to learn about the new system or impatience with working through any technical issues they may experience.
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Complexity of the ERP System
ERP systems are often compared to the body’s central nervous system, simultaneously controlling a multitude of features and functions while analyzing and adapting to information in real time. So it’s little wonder that some ERP users experience a steep learning curve. ERP systems are also highly customizable, which means employees often need to learn not only standard functionalities but also those tailored to the organization, their departments and their roles. In addition, technical complexity can be a barrier for some employees, particularly those who are uncomfortable with embracing new technology.
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Time Constraints
Finding time for training that works with employees’ schedules can be difficult, and taking employees away from their regular work duties for extended periods of time can disrupt the organization’s workflow. In some cases, organizations may try to cut corners by limiting training time, but doing so can result in lackluster coverage of the material and curtailed training effectiveness.
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Inadequate Training Materials
Training materials that are incomplete, surface-level or poorly structured compromise employees’ ability to fully grasp complex topics, leading to a poor understanding of the system. Outdated training materials pose problems, too. As systems are updated and enhanced, training materials should reflect the most up-to-date information to avoid inaccuracies and confusion.
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Lack of Hands-On Training
Hands-on ERP training allows employees to engage with the ERP system and gain a better understanding of it through active interaction. Otherwise, they may have trouble applying the concepts they are learning to their practical, day-to-day use of the system, not to mention that they also might lack confidence in their skills, feel hesitant about using certain functions or worry about making errors that could result in inaccuracies and process delays.
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Insufficient Post-Training Support
Training employees on ERP software is an ongoing process that extends long beyond the initial instruction. Organizations should monitor the progress and performance of employees as they move through training and start using the ERP system, providing constructive feedback along the way and offering opportunities to brush up on tasks they already learned and help in acquiring new skills.
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Training Not Aligned With Business Processes
When ERP training is not aligned with business processes — e.g., topics discussed aren’t relevant to employee workloads — users often become less engaged and less motivated to use the system. Plus, if training is not properly aligned with how a business gets the job done, employees may inadvertently stray from established procedures, unaware of how the system integrates with their workflows. This could result in errors and inaccurate interpretations of data.
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Underestimating the Learning Curve
ERP systems are complex, so it’s important for organizations to take the time to carefully explain how to use them. Underestimating this learning curve can have serious consequences. For example, employees may begin to feel frustrated if the system isn’t responding the way they expect. Ultimately, if businesses don’t invest in proper training, productivity will decline, leading to the need for additional resources to bring users up to speed — not to mention the ensuing hit on finances.
Best Practices for Effective ERP Training
Training is an essential part of an ERP deployment, ensuring that organizations and their staff can reap the full benefits of their systems. The following best practices highlight what companies need to consider for effective ERP training, whether they’re handling it on their own or engaging with the ERP vendor or other third party.
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Offer Comprehensive and Process-Oriented Training
A thorough, structured learning experience that goes beyond simply teaching employees how to navigate the ERP software is paramount. Employees need to be made aware of key functions and how to perform tasks related to their specific roles and responsibilities. This involves mapping out key workflows, identifying dependencies and understanding how data flows throughout the organization. An organized, phased training approach that eases trainees into the material aids in comprehension.
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Use a Blended Training Approach
A blended approach to training uses a mix of training methods to deliver a viable learning experience. Methods include instructor-led online training, on-the-job training, a modular learning management system and podcasts. Using a blended training approach offers users flexibility in learning, keeps people interested and motivated and enables organizations to customize training methods to suit a variety of learning preferences.
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Document Procedures Throughout Implementation
Documented procedures serve as a structured guide for training staff on how to use the ERP system. By outlining clear, step-by-step instructions to follow, documentation can also reduce the time and resources needed to train new employees.
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Commit to Continuous Training and Support
Training should not be a one-time event. Research shows that people are more likely to retain material when they are exposed to it repeatedly. Pacing is important, too; avoid information overload by rolling out training initiatives in smaller bites. Ongoing support is also useful when new features are rolled out, problems occur and questions crop up.
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Leverage the Insight of a Dedicated Implementation Team
An ERP implementation team typically consists of individuals from across an organization, including executives, project managers, experts from various parts of the business, end users and IT staff. This dedicated team ensures that training efforts align with the organization’s goals, project timelines and whatever individual departments and personnel within them need to learn.
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Define Core Requirements and Key Performance Indicators (KPIs)
Determining the core requirements and KPIs related to ERP training helps measure the success of training efforts. Metrics include user adoption rates, training completion rates and time to efficiency, which, in turn, can influence broader business KPIs, such as productivity rates, employee engagement and customer satisfaction.
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Develop a Comprehensive Project Management Plan
Think of the many steps involved in planning training — deciding on overall topics to cover, creating content for various departments and roles, determining training delivery, devising a training schedule that minimizes downtime and more — and it’s clear that getting a training program up and running is a project unto itself. But doing it right is well worth the effort. Another benefit: A comprehensive training plan helps everyone involved understand the project’s objectives, timelines and expectations, ensuring a smooth ERP implementation.
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Honor the Training Expertise of the ERP Vendor
For cloud-based ERP deployments, the preceding best practice is typically the responsibility of the ERP vendor, which hosts and provides the software as a service and, therefore, has deep product knowledge. Consequently, a best practice for training is to partner with or leave the training to the ERP vendor itself. The ERP vendor brings valuable insight from having trained other companies and receiving their feedback, which then informs their future guidance. In addition, vendor-led training removes the burden from internal resources and accelerates employee adoption.
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Foster Collaboration and Open Communication
Creating an environment of open communication and collaboration during ERP training promotes knowledge-sharing among different segments of the organization. It also has a positive impact on employee engagement and buy-in: When employees feel their opinions are valued and respected, they’re more likely to embrace the new system. This environment also encourages instructors to adjust the training program, when necessary, to meet participants’ needs.
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Gather and Act on User Feedback
It’s a smart idea to seek trainees’ input about whether the ERP training program met their requirements satisfactorily. Gathering feedback from participants — and acting on that feedback — helps organizations identify information gaps and tailor training to employees’ needs, preferences and learning styles. One way to seek insight is to provide a forum where employees can ask questions, raise concerns and share tips. When employees make suggestions that address common problems or suggest improvements to processes, broadcast those ideas to other teams to encourage ongoing engagement.
Unlock the Full Potential of Your Business With NetSuite ERP and Expert Training
NetSuite ERP offers organizations a comprehensive suite of cloud-based tools designed to streamline and optimize business operations, while providing expert training to guide system users. Customized dashboards, reports and visual analytics let organizations gain a detailed look at business activity so they can manage accounting, inventory, operations, distribution and more from a single application. NetSuite also provides its own education services, including all levels of ERP courses — with topics including revenue management, workflow fundamentals, managing human capital and much more — as well as preparation for the NetSuite Certified ERP Consultant exam.
ERP training is a critical component of every ERP implementation. Because it offers the appropriate planning, training methods and roles-based instruction, ERP training provides employees with the exact know-how they need to take advantage of the software’s numerous features and functions, enabling organizations to maximize the benefits they can obtain from their ERP investment.
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ERP Training FAQs
Can I learn ERP online?
ERP training is offered in many online formats, including webinars and podcasts. Online training allows individuals to access materials and proceed through the training program at their own convenience. It can also be cost-effective for the business, since it eliminates the need for individuals to travel to a location for in-person training.
What is ERP for beginners?
ERP is software that helps businesses manage day-to-day operations and automate processes, such as inventory management, supply chain processes and accounting functions. Data is housed in a centralized database so that everyone works with the same real-time information. Training courses familiarize beginners with the functions and features of an ERP system.
What are ERP skills?
ERP skills refer to the competencies required to work with ERP systems. These skills may include proficiently navigating the ERP system; inputting and editing data within the ERP system; generating, customizing and interpreting analytical reports; and managing business processes.