17 Apr
10 Most Common ERP Implementation Mistakes and How to Avoid Them
According to researchers, Enterprise resource planning (ERP) initiatives fail at a rate of about 50% or higher, and about half of all projects are regarded as problematic. Poor deployment may require weeks or even months of debugging and backtracking before you start to see a return on your investment. The second most important step you must take, after choosing an ERP system, is therefore likely to be adopting the suitable approach or technique for ERP deployment. Therefore, It is vital to comprehend the most common ERP implementation problems and how they may be avoided to design a strategy that is favorable to an efficient ERP deployment.
Here is a list of the top 10 ERP implementation blunders to watch out for:
1. Poor Planning and setting an unrealistic timeline
It's normal to want a change for the better right away when you're ready to make one. However, successful ERP implementation takes time. Due to the complexity of ERP systems, it is essential to establish a schedule that outlines your team's time commitment.
Recommended Solution:
Use an agile approach, involving end-users in each step to determine requirements, test, identify gaps, and then repeat. Set reasonable deadline expectations.
2. Negligence in Maintenance
When your ERP system goes live, work doesn't stop. Businesses should put in place a maintenance strategy. A formal strategy makes sure that users are aware of how to regularly maintain and enhance the ERP system so that it doesn't become antiquated or obsolete.
Recommended Solution:
By having a set plan, you can control any security risks and holes in the business processes and make sure the ERP system is always up to date with the newest apps and working properly.
3. Investment without a strategy and proper research
Before switching to a new ERP solution, many businesses miss significant problems with their manual, legacy processes. To guarantee that outcomes correspond with business plans, business-critical issues must be identified and addressed well in advance.
Recommended Solution:
Before making an ERP investment, outline your objectives and choose the capabilities your company needs so that changes may be made to outmoded, ineffective, and complex procedures rather than simply transferring them to a new platform.
4. Ignoring Load testing
Functional testing alone is never sufficient. Your system may pass testing, but it does not guarantee that it will perform just as well in real-world situations. Making the extra effort to achieve optimal performance is preferable to skip this activity.
Recommended Solution:
Before going live, test your ERP software by simulating the system's maximum real-world load. Through load testing, you can find performance-related problems and fix them in advance of going live.
5. On-premises VS Cloud ERP - Right choice at the right time
One of the most crucial choices when deploying an ERP solution is between On-premises and Cloud. The choice must be based on several factors, including infrastructure, customization, compliance, security, and storage. Even while cloud-based ERPs have a long list of benefits, choosing a cloud deployment can be a mistake if your company needs any intricate adjustments. Additionally, employing Cloud ERP software requires continuous access to a dependable internet connection.
Recommended Solution:
Before moving forward with the development of an ERP system, it is important to consider the advantages and disadvantages of each deployment method. The structure of your firm, specific business requirements, and the nature and architecture of the ERP system itself all play a significant role.
6. Failures in the Change of Management
Any organization's employees are accustomed to working in their current capacities and may not see the need for a change. ERP projects frequently result in significant modifications. However, many businesses fail to pay attention to the effects it has on employees' responsibilities or job functions. Many businesses that ignore change management are unable to utilize their ERP system to its fullest capacity. Change management becomes crucial in this situation.
Recommended Solution:
Working as a team and implementing a well-defined change management plan that includes effective stakeholder management, effective communication management, end-user training, etc. will help to assure stakeholder buy-in, promote user adoption, and hasten investment ROI. It is possible to ensure the success of your ERP implementation by coordinating corporate strategy and project strategy during the project start phase itself, correctly implementing the change management plan, and maintaining everyone's attention on the main goal.
7. Overlooking Industry Specific Solutions
Executives frequently forget that a good systems integrator (SI) can support sectors with specialized demands when selecting an ERP solution. Your SI might offer more capabilities that are industry-specific and software customization that is more suited to your company.
Recommended Solution:
Keep an all-encompassing perspective as you build your ERP modernization approach. Find an implementation partner who is knowledgeable about your company and can assist you in optimizing procedures that are typical of your sector.
8. Using Inappropriate Data
ERP software gathers information from throughout your whole business, giving you more visibility into your operations and assisting you in making wise decisions. However, incomplete, or erroneous data won't give you a complete view of your organization or be useful when making decisions.
Recommended Solution:
Your plan should include provisions for ensuring data integrity. You may be confident of deeper and broader insight across the organization with ePROMIS because it can integrate data from different systems.
9. Sticking to the old practices
Holding on to established procedures hampers innovation and may put one at a competitive disadvantage. Avoid reintroducing outdated business procedures into your new ERP system. Such solutions give you the most freedom to rethink, simplify, and automate activities in ways you would not have previously imagined.
Recommended Solution:
Be receptive to novel and presumably superior approaches. Examine your current company procedures critically and logically to see whether you can automate them.
10. Unreasonable Expectations from ERP
ERP is a software solution that will change your business but using it with unrealistic expectations runs the danger of failing miserably. It's also common for businesses to be surprised by ERPs' market domination, but it's important to evaluate your needs as a business and determine how much additional resource allocation is feasible.
Recommended Solution:
According to a survey, 25% of participants believed that realistic ERP implementation expectations were the most important factor in avoiding failure. Therefore, once it is deployed, don't expect ERP to instantly cure all of your problems; instead, make plans now for future wants and requirements.
Conclusion: The deployment of an ERP system is one of the most important initiatives you can take for your company. Best practices for ERP deployment enhance customer satisfaction, boost sales, reorganize production processes, and conserve time, money, and resources. Numerous businesses make errors before, during, and after the adoption of ERP, which lowers production and efficiency. By avoiding these common mistakes, you can accomplish your business goals and eventually grow your corporation.
Here is a list of the top 10 ERP implementation blunders to watch out for:
1. Poor Planning and setting an unrealistic timeline
It's normal to want a change for the better right away when you're ready to make one. However, successful ERP implementation takes time. Due to the complexity of ERP systems, it is essential to establish a schedule that outlines your team's time commitment.
Recommended Solution:
Use an agile approach, involving end-users in each step to determine requirements, test, identify gaps, and then repeat. Set reasonable deadline expectations.
2. Negligence in Maintenance
When your ERP system goes live, work doesn't stop. Businesses should put in place a maintenance strategy. A formal strategy makes sure that users are aware of how to regularly maintain and enhance the ERP system so that it doesn't become antiquated or obsolete.
Recommended Solution:
By having a set plan, you can control any security risks and holes in the business processes and make sure the ERP system is always up to date with the newest apps and working properly.
3. Investment without a strategy and proper research
Before switching to a new ERP solution, many businesses miss significant problems with their manual, legacy processes. To guarantee that outcomes correspond with business plans, business-critical issues must be identified and addressed well in advance.
Recommended Solution:
Before making an ERP investment, outline your objectives and choose the capabilities your company needs so that changes may be made to outmoded, ineffective, and complex procedures rather than simply transferring them to a new platform.
4. Ignoring Load testing
Functional testing alone is never sufficient. Your system may pass testing, but it does not guarantee that it will perform just as well in real-world situations. Making the extra effort to achieve optimal performance is preferable to skip this activity.
Recommended Solution:
Before going live, test your ERP software by simulating the system's maximum real-world load. Through load testing, you can find performance-related problems and fix them in advance of going live.
5. On-premises VS Cloud ERP - Right choice at the right time
One of the most crucial choices when deploying an ERP solution is between On-premises and Cloud. The choice must be based on several factors, including infrastructure, customization, compliance, security, and storage. Even while cloud-based ERPs have a long list of benefits, choosing a cloud deployment can be a mistake if your company needs any intricate adjustments. Additionally, employing Cloud ERP software requires continuous access to a dependable internet connection.
Recommended Solution:
Before moving forward with the development of an ERP system, it is important to consider the advantages and disadvantages of each deployment method. The structure of your firm, specific business requirements, and the nature and architecture of the ERP system itself all play a significant role.
6. Failures in the Change of Management
Any organization's employees are accustomed to working in their current capacities and may not see the need for a change. ERP projects frequently result in significant modifications. However, many businesses fail to pay attention to the effects it has on employees' responsibilities or job functions. Many businesses that ignore change management are unable to utilize their ERP system to its fullest capacity. Change management becomes crucial in this situation.
Recommended Solution:
Working as a team and implementing a well-defined change management plan that includes effective stakeholder management, effective communication management, end-user training, etc. will help to assure stakeholder buy-in, promote user adoption, and hasten investment ROI. It is possible to ensure the success of your ERP implementation by coordinating corporate strategy and project strategy during the project start phase itself, correctly implementing the change management plan, and maintaining everyone's attention on the main goal.
7. Overlooking Industry Specific Solutions
Executives frequently forget that a good systems integrator (SI) can support sectors with specialized demands when selecting an ERP solution. Your SI might offer more capabilities that are industry-specific and software customization that is more suited to your company.
Recommended Solution:
Keep an all-encompassing perspective as you build your ERP modernization approach. Find an implementation partner who is knowledgeable about your company and can assist you in optimizing procedures that are typical of your sector.
8. Using Inappropriate Data
ERP software gathers information from throughout your whole business, giving you more visibility into your operations and assisting you in making wise decisions. However, incomplete, or erroneous data won't give you a complete view of your organization or be useful when making decisions.
Recommended Solution:
Your plan should include provisions for ensuring data integrity. You may be confident of deeper and broader insight across the organization with ePROMIS because it can integrate data from different systems.
9. Sticking to the old practices
Holding on to established procedures hampers innovation and may put one at a competitive disadvantage. Avoid reintroducing outdated business procedures into your new ERP system. Such solutions give you the most freedom to rethink, simplify, and automate activities in ways you would not have previously imagined.
Recommended Solution:
Be receptive to novel and presumably superior approaches. Examine your current company procedures critically and logically to see whether you can automate them.
10. Unreasonable Expectations from ERP
ERP is a software solution that will change your business but using it with unrealistic expectations runs the danger of failing miserably. It's also common for businesses to be surprised by ERPs' market domination, but it's important to evaluate your needs as a business and determine how much additional resource allocation is feasible.
Recommended Solution:
According to a survey, 25% of participants believed that realistic ERP implementation expectations were the most important factor in avoiding failure. Therefore, once it is deployed, don't expect ERP to instantly cure all of your problems; instead, make plans now for future wants and requirements.
Conclusion: The deployment of an ERP system is one of the most important initiatives you can take for your company. Best practices for ERP deployment enhance customer satisfaction, boost sales, reorganize production processes, and conserve time, money, and resources. Numerous businesses make errors before, during, and after the adoption of ERP, which lowers production and efficiency. By avoiding these common mistakes, you can accomplish your business goals and eventually grow your corporation.
