7 Most Common ERP Implementation Mistakes and How to Avoid Them
Category : ERP
Blog posted by : Admin / 24 May, 2021
Here are the top 7 most common ERP implementation mistakes organizations make when choosing and deploying an ERP system. Quick suggestions on avoiding such mistakes to help you:
1: Underestimating The Importance Of Correct Data
Garbage in equals garbage out. It is essential to ensure that the new ERP system is installed with accurate and clean information, which will minimize the possibility of errors and ensure that proper parameters and procedures are set up. ERP systems are impressive tools that can scale your business as never before. However, ERP systems can only function properly with the correct data being fed into them. Ensuring that the data acquisition system is set up correctly to ensure error-free data will cause far fewer issues down the line. It is suggested to examine all of your information sources. As a result, it may show gaps in existing data.
2: Not Having An Active Load Testing Environment
The ideal way to find out whether your system is up to speed and execute exactly how you'd expect it would be to run a testing process. Unfortunately, you will not have the ability to see precise results according to a couple of test users. To see whether your ERP system is functioning as efficiently as it should, you want to stimulate your whole user load to see the real-world ramifications of changes. Taking time to do proper load testing will not only speed up the execution but will also set up your business processes better for success.
3: Not Considering The End-users (In Every Department) During Decision Making
When choosing to implement an ERP software solution, usually the approvals of only C-level executives are sought. Not considering the suggestions of employees on how it can impact their existing procedures can result in operational complications later. It is essential to consult employees not only from IT but across the whole business from finance, operations, warehouse, and manufacturing functions to guarantee everybody relevant is involved in finding and implementing the ideal solution as smoothly as possible.
4: Insufficient Budgeting For Technical Personnel
Company leaders often underestimate the expenses connected with the implementation and maintenance of an ERP solution. More importantly, they're unclear about the training required for their workers to ensure optimum use of the solution. When organizations are attempting to achieve more with less, insufficient budgeting for any of the many aspects of the project can lead to unexpected challenges later, as well as partial collapse.
5: Not Having A Strategy For Maintenance
Implementing ERP software is not a one-off item. When the execution is done, the company should invest in a care plan to do what's needed for enhancing the ERP system on a regular basis. Outdated ERP systems can increase risks in your operations in various ways.
An ERP solution, if properly implemented and managed, can be a significant contributor to improved efficiency, increased agility, and resource optimization. It is important to be in a constant learning process to avoid errors and ensure the initiative will benefit the organization for an extended time.
6: Three Cloud Erp Implementation Errors To Avoid
Cloud-based computing, popularly called software as a Service or SaaS, allows every user access to different software applications that run on shared computing apparatus through the world wide web, including disk storage and processing capacity. These computing resources are stored at a remote data center intended to host numerous programs on different platforms.
Cloud ERP system implementations can trigger enormous and abrupt changes in business operations. Thus, doing things as perfectly as possible is very critical. Issue avoidance and precise planning can cut costs and lessen the pressure of implementation deadlines.
To give you some hints, here are the top three cloud ERP implementation errors to avoid in particular:
#1: Failure to Plan and Establish Goals
Cloud ERP implementation can't be carried out with just a single click. The implementation has to be customized to your specific company. Building a comprehensive map to jot down your targets for the implementation of cloud ERP is very crucial. An effective and well-planned roadmap will guarantee you will get the solutions acceptable for your business requirements. Also, it is possible to avoid disasters by avoiding distractions.
A detailed plan also enables teamwork between the members of the implementation group. They'll function as a productive and cooperative staff throughout the project procedure. Additionally, a company roadmap will assist you in breaking down the implementation to attainable actions to ensure quality. This approach also guarantees that you have created the right team at the right location. Consequently, everybody is connected and willing to cooperate. Evidently, creating a plan that is new to you is quite a tricky task. This is why you want a professional consultant.
#2: Inadequate Commitment
Among the top three clouds, ERP software implementation errors to avoid is inadequate commitment. ERP implementation may boost your business, streamline processes and eventually achieve your goals. However, it entails a complex procedure. Additionally, it is a process that needs from six months to 2 years. Preferably, plan for at least one year to implement and then map the curves out. If you are not prepared to engage in this process, then you need a specialist who can facilitate or speed up the procedure. Or, it is best not to move forward until you're ready to commit almost a year to the process.
Apart from the time dedication, you also should ensure that you have a perfect group setup that is dedicated to completing the process.
#3: Struggling to Obtain the Ideal Leader/ Lack of Experience
It's exceedingly evident that the quality of staff involved and their understanding of the process plays a vital part in the success of the implementation. With an insufficient understanding of cloud ERP systems, your implementation is at significant risk. Since each member of the team has to understand the ERP implementation properly and they need to be able to think strategically. It means that your preferred project manager has to have strong attention to detail and must also understand how to guide others because the quality of leadership defines the quality of performance of the team.
Evidently, you want an ideal person to direct the cloud ERP implementation. What do you mean by this? It means that this individual knows how to manage the project. The team leader should also know how to build strong relationships with various units. Above all, the leader must have superior organizational skills to manage the team.
There are more concerns apart from the very best three cloud ERP software implementation errors to avoid. Another is about how you address the fear of change. This can be a significant challenge faced by the majority of companies. Keep in mind that as business owners, you have to understand how to adapt to modifications and, therefore, should not be afraid of change. Be strong enough to face the effect or results of your actions. Simply assign teams to collate information on how the teams utilize the software, the way to improve it, its potential issues, and the like.
7: Trying To Implement All In One Move
When implementing an ERP system, the one most important thing an organization can do in order to reduce delays is to focus on a single task at one time. We know it may seem illogical, but you are going to move a lot slower if you don't have priorities set and are attempting to do everything together. We suggest beginning with the features and departments that are most important to your business. This makes it possible to identify which features are the most valuable for your business and helps you recognize that specific functionalities are dependent on others being set up.
For expert guidance on implementing ERP in your organization, reach out to us at enquiry@strategicerp.com.
