Common ERP mistakes and ways to avoid them
Implementing an ERP system can be the secret recipe that the organization needs to grow. With it, you can increase your productivity, reduce overheads, streamline workflow, and maximize your bottom line. Unfortunately, most companies are finding it hard to complete their projects within the required period and the projected budget.
Many of these problems emanate from mistakes that occur when using the ERP system for running the project. Here are common missteps that IT executives make when deploying the ERP system and ways to prevent them.
Not putting together all the requirements
Most companies simply take their traditional business processes as they are and put them into the ERP software in an attempt to automate them. Unfortunately, most of these processes turn out disorganized, as part of the processes cannot be automated. It is important that you evaluate the needs of the ERP system beforehand and gather all the requirements. You may also need to redesign some processes to make them more effective.
Unrealistic goals during planning
One of the key areas in ERP project implementation is planning. Unfortunately, most companies underestimate the amount of resources and time required for a given project. In a bid to run the project fast, most IT professionals take shortcuts; drop the testing, and evaluation procedures. Many of these projects end up failing. Audit the necessary processes so that you know where the solution may help you achieve maximum efficiency and better your results and then the time needed to achieve these results.
Failure to include all the players in the decision-making
It is unfortunate that many IT professionals seek the nod of the top management before implementing the ERP system. They fail to engage the employees that will be using the system to achieve the intended goals. It is vital that you involve all the employees in the entire organization from operations, human resource, finance, to marketing in the decision-making process. There should also be a change management process to bring everyone on the same page. If it is time to implement the system, there should be adequate training performed by the ERP vendor or a company with sufficient expertise.
Looking at features over functionality
An ERP system with several features is a good selection. However, features are only relevant if they have an impact on the effectiveness of the system on a given project. Instead of going for the ERP system with the most features, companies should go for a solution that has a history of success, can be customized with ease, is easy to integrate with the existing processes, and is flexible.
Trying to implement everything at once
Several small components enable the ERP system run effectively. Since the system is very complex, you may not have all the requirements for its application beforehand and the ability to train the users in all the key areas at once. Instead of trying to implement the whole system at once, consider small calculate steps where the next stage is implemented after the previous phase has been effective.
The key to ERP solution implementation success is proper selection, planning, and the involvement of all the key players. Moreover, end users should have appropriate training, and the system should be implemented in stages. This way you are able to deliver value and meet your set project goals.