ERP Implementation is a massive positive change for any business organization. It's a big leap forward for an organization that is switching to ERP. Nevertheless, it acts as a profit-making tool for business; it has its exceptions too. Investing a huge amount of money, resources and time could turn out as a failure if not implemented successfully. Even an ERP implementation nearer to perfection can lead to major consequences in terms of lost productivity and delays.
Deploying an ERP system is a complicated and unvarying task. Business enterprises get flattered by ERP software but are unaware of numerous challenges/mistakes that can result in snagging of business growth.
Below are few commonly made mistakes for ERP Implementation:
1) ERP implementation is not just an IT Project:
A wrong notion prevails among all entrepreneurs that ERP is just an IT project, wherein only a few personnel are involved. ERP implementation should go company-wide where your ERP system will be engineered and aligned to your business processes and its requirements. It is fine if the whole system is not shared with all fellow workers, but it is highly recommended to involve each staff in its transition phase. As invested huge time, bulky budget and more manpower, it is not easy peasy for your organization to consider all resources as scrap; hence company-wide involvement will accomplish the full potential for a new ERP system.
2) Resistance towards change management and inefficient training:
Unless people accept the change of system at a drastic level, ERP is a failure. With ERP implementation there are certain skill sets that executives, managers, and employees need to master. An organization needs to manage all changes that are going to happen with ERP. Effective change management is mandatory in people, process and technology.
One of the key factors to rely upon effective implementation is imparting training for ERP adoption to users and make them understand its configurations and processes. If users are well trained and thorough with inside – out of the system, eventually it will run your business flawlessly.
3) Unnecessarily adopting an eye-popping ERP:
‘ERP’, the name itself is so popular that sometimes an organization buys it despite its necessity. There is a gap between knowing your business needs and conveying/ defining it to the vendor. Failing to document your exact system requirements to vendor leads to unsuitable features configuration that will set your business apart from the competition.
An entrepreneur must avoid the misconception of incorporating a complex process in the business that cannot provide functionalities and a competitive edge in the market.
4) Maintenance Deficit:
ERP Installation is not a one-time phenomenon. Unlike other systems, this gigantic network process ought to be maintained. ERP investment will provide sufficient returns if it is maintained on a timely basis.
Maintenance deficit puts the operations to stated functionality and scalability of improving to new versions comes to an end. Hence post implementation of the system, maintenance strategy to follow.
Avoiding ERP Failure
It is in the purview of management to adhere to proper planning before execution.
Proper ERP customization and implementation should take place which allows the scope of scalability in the future; else it could hamper the entire system.
Avoid mismanaged expectations while evaluating the software with business and vendors.
Time allocation for ERP implementation should be obeyed to eliminate the risk of over budget and loss of man-hours.
SerpentCS ERP Consultants can help you develop an implementation plan in accordance with your business needs by critically scrutinizing the exact requirements and mitigate project risk.