Top 5 ERP Implementation Mistakes to Avoid
ERP implementation will bring a much-needed revolution to your organization. It manages every aspect of your business from the material required to finance, production to warehousing, and delivery. Hence, ensuring a streamlined work process for maximum efficiency and productivity.
But while the ERP brings massive advantages with it, success is only possible when the implementation is properly understood and done right. This is why organizations think of ERP implementation as a horror. But this is highly misconstrued due to a lack of understanding and overlooking minor aspects that make ERP implementation a success and they will end up committing grave mistakes. These mistakes have an adverse impact on the resources and revenue of your organization. This will result in long-term losses. So, in today’s post, we will list down some of the common mistakes that businesses make that results in ERP implementation failure.
Five of the common ERP implementation mistakes are:
Having unrealistic expectations
Moving ahead with no planning and having unrealistic expectations will result in ERP implementation failure. We understand businesses getting awestruck by the ERPs’ prominence in the market but it is important to check where you stand and how much resource allocation can you afford. This is why you should understand your organization’s needs. Draw a clear objective with well-defined project scope and financial status.
Focusing on getting it all done
Prioritize the tasks and departments that need immediate attention. Trying to cover the work you have done for a decade in just a few days is going to prove counterintuitive. Consequently, your system will work slowly and thus the efficiency of the work will decline. This will therefore affect productivity. This is why you should understand and plan how you have to work through for a successful implementation without wasting time, money, and other resources.
Overlooking Maintenance
Mere ERP implementation does not mean that your job is done. Just like any system, ERP requires periodic maintenance. Therefore to get the most out of your ERP system, you can ensure improvement by designing and implementing an effective maintenance strategy.
Untrained Staff
While ERP implementation is not as challenging as organizations think of it to be, given you plan and execute properly, it’s not a piece of a cake either. To think that your employee will adjust and learn the new ERP solution would be a grave mistake. As a result, insufficient training is one of the most common reasons for ERP implementation failure. Therefore, it is important to periodically train your employees with practical training sessions and demonstrations. This is why it is important to communicate. So dedicate time and resources to educate your staff on the effective implementation of ERP.
Overlooking the significance of accurate data
Data accuracy is of prime importance for successful ERP implementation and to take the business ahead. That is to say that overlooking data accuracy will result in errors. This will further lead to setting up wrong parameters and procedures. ERP will only generate output based on the data provided to them. Therefore, if the data is not clean and accurate, then disaster will follow. This is why it is important to make sure that the ERP system is set up with accurate data.
These were the top five common mistakes which organization make, ending up with an ERP failure. You can read more about ERP implementation mistakes in our next blog.
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Vijay comes with a vast experience in ERP and enterprise solutions space with about 20 years of experience in various packaged application like Acumatica, SAP, Orion, Salesforce.com, SugarCRM and, SalesLogix.