Investing a substantial amount of money in enterprise software only to see it fail is a big nightmare for a business owner. These solutions are built to give your business a new lease of life. You are embarking on a journey to amplify your productivity, improve your business performance, churn out more profits and reap a lot more benefits. By not following a proper strategy and getting prone to ERP implementation mistakes, you might make your way into the pitfalls along your journey to business transformation. Following are the common ERP implementation mistakes and how you can avoid them, so as to make you aware of the possibilities and you can act on them accordingly.
ERP implementation mistakes | How to avoid failures
ERP implementation mistake 1. Lack of adequate planning
Good fortune is what happens when opportunity meets with planning.
- Thomas Edison
ERP is a very vast and profound system and it is going to change the way your business works. Therefore it is important to do a good amount of planning before taking the leap. There are various modules of ERP which deal with particular business departments. According to your needs, plan why and where you are looking to implement ERP and streamline your processes. It is important to have an effective budget plan but at the same time, keep in mind that there can be additional costs involved in the future. If you do sufficient planning before the start, you can ensure to keep your budget in limits. Don’t rush the project and expect that there are going to be extended timelines as well.
ERP implementation mistake 2: Insufficient training
Training is the essence of transformation
- Ann Voskamp
Your employees are ultimately the end-users of the ERP system and if they are not trained sufficiently, they will not be able to use the system to its full potential. Insufficient training can actually backfire your goal and lead to a decrease in employee productivity and also increased costs. It is important to have training in such a manner that it highlights and covers all the areas and features of ERP implementation in your organization. Also, there are going to be employees who leave the organization and get replaced by the new ones. It is important to have a dedicated team who will ensure that the new users are properly trained to use the ERP system.
ERP implementation mistake 3: Lack of participation
No one can whistle a symphony. It takes a whole orchestra to play it.
- H.E. Luccock
For successful ERP implementation, participation from all the departments is very vital. ERP is a solution that will provide centralized data across the entire enterprise. A lack of participation from even one department can cause the whole system to eventually fail. Therefore, it is important to realize that business transformation with ERP requires a collaborative effort of your whole team. Your employees are working in their specific departments on a daily basis and hence they are well aware of the specific needs. Hence if they participate in decision making, they can help in laying down the requirements for ERP and help in decision making during customizations. On the other hand, a lack of participation will lead to improper decisions, eventually leading your ERP implementation to jeopardy.
ERP implementation mistake 4: Failure in change management
It is not the strongest or the most intelligent who survive, but those who can best manage change.
- Charles Darwin
Once your ERP goes live, there will be changes in the working of your organization. The duplicated entries that you had to enter and the tedious tasks you had to do manually will be automated by ERP. Change management is an integral part of ERP implementation and one of the key factors to gain success in ERP for your organization. This involves training and educating the end-users, having proper communication, accepting the changes in processes, following a teamwork approach and bringing everyone on the same page. ERP is a lot more than just disposing of your old legacy systems. Properly following the change management strategy and having everyone aligned with the end goal will ensure that your ERP implementation does not fail.
ERP implementation mistake 5: Unbounded expectations
Too many disappointments are usually a sign of too many expectations.
While you decide to get ERP for your organization, you might have your expectations soared high. ERP is a software technology that is going to revamp your business but at the same time having unrealistic expectations with ERP can be a major pitfall leading down to failure. A well-defined strategy should be followed, keeping in mind future customizations and updates; so don’t be under the impression that once implemented, ERP will combat all your adversities in a single go. The thought of business transformation might get you on cloud nine! Amid the heavy excitement and zeal, carefully analyze your needs and list down your requirements, discuss with your vendor and build an efficient strategy to triumph your business over the complexities.
ERP implementation mistake 6: Improper maintenance
Software maintenance is not about keeping it working like before. It is about keeping it being useful in a changing world.
- Jessica Kerr
Nothing great survives in the long term without proper maintenance. You are not looking to implement ERP in your organization just for a short time period, rather you are looking to reap its benefits for the longest time. Throughout the course of time, your ERP needs updates and bug fixes and your vendor might occasionally offer improvements to the ERP. Timely and proper maintenance ensures that your ERP software is up to date, error-free and you are using it to its full potential. If your system is outdated, you might indirectly be putting your business on risk and paving the way to some undesirable consequences. Therefore, have a plan set for maintenance so that you never have to look back.
ERP implementation mistake 7: Lack of communication
In teamwork, silence isn’t golden; it is deadly.
- Mark Sanborn
For successful ERP implementation, it is important to have efficient communication between all the levels of the organization. A lack of communication hinders the ability of the organization to get the maximum benefits out of the software and increases the chances of failure. Communication is involved in planning at different stages, consulting the vendor, discussing the needs, training the employees, reporting, etc. Your employees might be facing some problems in adapting to the new ways of working. They need to communicate the issues that they are facing and getting support from the top-level executives will motivate them and align them with company goals and visions. Meetings should be held on a regular basis to ensure if everything is running smoothly or not.
ERP implementation mistake 8: Resistance within the team
Continuity gives us roots; change gives us branches, letting us stretch, grow and reach new heights.
- Pauline Kezer
Implementing ERP in an organization gives a plethora of benefits and changes the way employees work. One thing that top-level executives might have to deal with is facing resistance from the team because they might be so used to the way they work that they are unwilling to accept a change. Facing a reluctance from the end-users of the ERP system will ultimately crumple your transformation. Make them understand that the ERP will reduce their surplus tasks and boost productivity, which means they will be able to utilize their skills to the fullest. Providing them training and efficient support during the issues that they face will help them get a positive outlook on the ERP system.
Let our advance worrying become advance thinking and planning.
- Winston Churchill
From big companies to SMBs, enterprises are looking forward to investing in ERP software to transform their business. ERP helps you foster your business growth and conquer new heights. With so many benefits of implementing the ERP software, it is also important to be aware of the potential pitfalls and dodge them by knowing them beforehand. Following the right ERP implementation steps and the correct strategies will ensure that you are ultimately paving your way towards success.
MD, Finbyz Tech Pvt Ltd