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Mistakes to Avoid in ERP Implementation

Mistakes to Avoid in ERP Implementation

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With its numerous benefits to countless companies, ERP (enterprise resource planning) is now crucial in running a business. It helps automate time-consuming tasks and allows enterprises to optimise the use of various resources efficiently. In addition, employees and stakeholders from different departments can effortlessly collaborate, leading to exponential scalability and ease of doing business for the whole organisation.

However, ERP implementation, especially on-premise ERP systems, is a massive undertaking that can significantly disrupt operations at many levels. Deployment can be expensive and will take much time to finish. Delays and unnecessary expenses are common, especially for companies who do not thoroughly prepare for the implementation.

Proper planning and execution of how the ERP solution will be deployed are beneficial in making the ERP implementation successful. Learning about the common mistakes before, during, and after the process will allow companies to prevent potential errors during the project. Here are the common mistakes that firms should avoid during their ERP implementation efforts.

Not Having Appropriate Plans and Goals

Like any other critical task within an enterprise, it is vital to conduct extensive planning for an ERP project to thrive. ERP implementation affects all departments, such as human resources, finance, and sales, so it is essential to organise the necessary information for the project carefully. Many firms do not have up-front project planning, leading to confusion and derailments along the way.It is vital to identify the core capabilities and limitations of the ERP system. This is why Integral Management uses a strategic and phased approach to all ERP system implementation, whether it is an entirely new system or a migration of a legacy program to a more stable and efficient one. Once the capabilities and limitations are identified, companies can plan and map out workflows through the development and implementation of extensions in reporting.

Creating a roadmap for the project will significantly decrease the chances of going through mistakes once the implementation starts. The roadmap can assist the workforce in learning the priorities and goals, making the plan more efficient. It will allow team members to work as one throughout the process and get back on track easily should there be any complications.

Insufficient Research about On-Premise and Cloud ERPs

Evaluating the pros and cons of on-premise and cloud-based ERP solutions will allow institutions to learn what is ideal for their current system. For example, on-premise ERP will require a committed IT staff to maintain the system adequately. It will also need massive in-house hardware, which might be suitable for those who do not want to risk data breaches.

Meanwhile, cloud-based ERP, such as the Dynamics 365 Business Central, allows more flexibility and scalability than on-premise counterparts. Businesses also can customise the modules to only purchase what they need most from their ERP. Knowing these will significantly decrease any chances of failures during the ERP implementation.

Not Knowing the Needs of the Business

Countless companies spend on ERP solutions to improve the overall process for their employees. However, it is vital to have a clear picture of what the organisation truly needs from the ERP as it can significantly help during implementation. May it be inventory tracking, scheduling of work, or organising customer data, having a clear picture of what should be prioritized is advantageous in choosing the solution that can cater to what the institution will need to improve on.

Numerous ERP services, especially cloud-based solutions, allow businesses to customise their ERP to ensure work efficiency and custom develop applications and extensions to support workflows and unique business processes that are native to your organization. It will enable them only to avail specific modules that can address certain shortcomings in the operations, making it more cost-effective than ever.

Lack of Key People on the Project

ERP implementation is tremendous work for any company and is expensive to finish. So, not having the right members for the project will cause multiple disruptions in the execution of the plan. Involving the key personnel from various departments from the beginning of the deployment, they can actively engage throughout the process. After all, they are the ones who will mainly utilise the new system.

It is also vital that the one leading the project has comprehensive knowledge about ERP solutions. This way, necessary details and updates about the ERP implementation will be efficiently disseminated across all departments. The project manager can formulate a communication plan that helps ensure all employees are well-informed about the new system and who the contact points will be.

Trying to Achieve the Goals in One Go

The typical time frames for ERP implementations depend on various factors, including company size, the complexity of the ERP solution, and whether customisations are needed for specific departments. The project can take a couple of months or years, and rushing it might result in obstacles during the execution of the plan.

Companies can minimise delays by focusing on one task or department at a time. The organisation can develop a priority list during the planning stage to determine which feature or department is the most valuable for the project.

Keeping the Legacy Systems

Organisations should slowly decommission their old ERP systems as it might affect the new software deployment. This will help them optimise the capabilities of the new ERP and save money from licensing and maintenance of legacy ERP solutions. Keeping it would have old applications hanging off the new system, which significantly undermines the efficiency of the newly implemented ERP.

Failure to Train the Staff and Management

Implementing new ERP solutions will affect all departments, and not training the workforce is the first step to making the whole project fail. This can cause the employees to resent the new ERP system, especially those who grew accustomed to legacy software. In addition, the productivity and efficiency might drop significantly, with employees trying to revert to old processes or look for possible manual workarounds.

To provide adequate training, the company can first train critical people in the enterprise, such as the managers and department heads. After this, they can begin the training for the staff to help them familiarise themselves with the new ERP. Everyone in the company must be sufficiently trained with the latest software before making it live to avoid any dispute along the way.

Avoiding ERP Implementation Mistakes

Implementing modern ERP solutions can disturb countless business-critical tasks and cause inevitable mistakes. But with proper planning, firms can minimise the possibility of making blunders that can either delay or halt the project. In addition, they can look for trusted ERP vendors who can help them before, during, and after the implementation.

Integral Management Systems PTY LTD has been in the ERP industry since 1989 and is the preferred Microsoft Dynamics (CRM and ERP) partner in Western Australia. We can provide consultations, migration, implementation to support and maintain your ERP and CRM need