For many organizations implementing an Enterprise Resource Planning (ERP) system can be a major undertaking. There are many benefits of using an ERP system: it improves your productivity, streamlines your workflows and processes, helps you decrease costs and maximize your ROI. However, many companies face challenges when trying to get all the pieces of an ERP to work together in harmony.
How many times have you heard horror stories about ERP implementation projects that overran their budgets or took longer than expected? An error-prone ERP implementation can be disastrous and prevent you from gaining the most from the use of your ERP. To help prevent that from happening, here are the 10 most common ERP mistakes and how you can avoid them.
1) Having Unrealistic Goals
Without proper planning, your ERP implementation project is bound to fail. Organizations often underestimate the time and resources required to implement a new ERP solution and this causes cost overruns and bottlenecks. It is important to have an internal audit of processes where the new ERP software can best be used. You should also partner with a good third-party implementation partner that can use their expertise to provide proven design and deployment measures for your new enterprise software.
2) Not Doing Active Load Testing
The usability of your chosen ERP solution needs to be assessed with active load testing to confirm its effectiveness in real-world scenarios. You can avoid this mistake either by setting up a testing team in-house or partnering with a testing-as-a-service provider.
3) Not Working Collaboratively
A new ERP solution will drastically change the way most of your employees operate, it needs the support of all departments to be implemented properly. A collaborative environment should be encouraged, one that helps your key executives and project managers finish the implementation project on time.
4) Not Using Pilot Programs
There are pilot programs for each phase of implementation, and they provide valuable data for testing and allow your employees to incorporate optimized changes into the implementation design.
5) Not Training Your Employees
Many companies make the mistake of assuming that their employees will simply adjust to the new ERP solution. However, these software packages provide a lot of value and thus can be complex. Situational or role-based training along with live demonstrations help get your employees accustomed to the various features of the new software.
6) Skipping Compliance
Your new ERP solution must be in-line with the latest industry laws and regulations. Skipping compliance measures can land you in hot water with the government or other regulatory bodies. Using a robust tool like the IFS ERP can help you with this, as they come with built-in features to help with compliance.
7) Not Using Good Data
Any technological solution is only as good as the data it has. You should review your data sources. A review may reveal information gaps in your current data. Take this opportunity to ensure that only holistic data sources are used with the new system.
8) Not Replacing Legacy Systems
Maintaining legacy assets may seem easier that replacing them with newer ones, but it can quickly become expensive due to the support and upgrades that will eventually be required. If any of your related systems do not work in tandem with your new ERP software, or they have overlapping functionalities, you’re better off getting rid of them.
9) Not Having a Maintenance Strategy
So, you’ve implemented a new ERP successfully. Now what? Continuous improvement and preventative maintenance measures help get the most ROI from your new system and keep your software running at an optimal level.
10) Not Choosing the Correct ERP
It may sound obvious, but it is important to choose the correct ERP solution to begin with. Choosing a sub-par ERP solution will likely lead to sub-par results. If you choose a Gartner MQ rated ‘ERP leader’ like IFS ERP, you will likely have more benefits and better results than most standard solutions.
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