With the increasing reliance on technology and automation in businesses, ERP Implementation has become a necessity for organizations to stay competitive. But with any major business transformation, comes potential risks and pitfalls, making it necessary for you to plan. Read on for some useful steps to help you avoid the most common mistakes when implementing an ERP Software System.
The first thing to understand is that there is no such thing as a one-size-fits-all ERP Software System. You must be very clear about the goals you intend to achieve using ERP software. A roadmap should be in place, and all of your needs should be adequately documented; otherwise, you may end up with a system that is unsuitable for your organization.
An ERP has a lengthy list of functionalities. You are not required to utilize all of them. Choose functionalities that are important to you and those you believe can be used by your company. E.g. start implementing "Business Scorecards" only if your organization is ready. Many firms struggle to implement Business Scorecards
If you choose the correct ERP Software System, it will meet the majority of your company's standard criteria. You should be able to undergo ERP Implementation as standard with minor customization of your processes/reports. However, only if there are specific business vital needs that cannot be met without Customization should you consider tailor-make ERP.
However, please carefully consider if the Customization is "really" Business Critical or is only being presented as such by a determined user. The fewer customizations you make, the quicker the installation and the greater the rewards. Avoid excessive changes and non-business important alterations as a general rule.
In the early phases of ERP Implementation, try not to be overly concerned about the initial costs against the value gained. It will take some time for the organization to establish a pace and begin receiving meaningful value from the ERP System. Cost concerns during the early stages of installation may result in you missing out on the software's added value more frequently than not.
Look at all those factors that are beyond financial numbers, whether it is the improved synergy among different departments which helps an organization take those crucial decisions, or the social collaboration through which it engages with its customers and respond to their queries "correctly" and in a "quick" manner.
Organizations frequently make the mistake of allocating the least occupied resource within Departments to the ERP Implementation process. They have no idea that this will have an irreversible impact on the deployment of the ERP in the specific department as well as the overall corporation.
For the ERP Implementation process, one must aim to identify Senior/Middle Management, who are the individuals who not only understand their own Department's processes but are also aware of how their processes connect with the processes of other departments. Such individuals will always have "more vital" business responsibilities, yet they will still need to find time for the implementation project.
Second, it is critical to control the users' expectations. In an endeavour to automate "everything," one should avoid developing systems so complex and time-consuming that individuals are unable to use them. In an attempt to automate everything, there is also a risk of falling into the "heavy customizations" trap, which should be avoided.
It is critical to find the right "champion" inside the company to push the ERP installation effort. In most companies, the IT Manager or CIO becomes the ERP Champion by default. Do not fall into the trap of making the IT Manager your ERP implementation Champion. While these may potentially be viable options, consider ERP as a business endeavour rather than an IT project. When you see ERP as a business initiative, you will have a far broader range of options for selecting the Right ERP Champion inside your firm.
In most circumstances, an ERP Implementation will fail, if your staff is not familiar with the intricacies of the new ERP system. This will not only result in the failure or near-failure of an ERP deployment, but it will also result in an organization having underperforming and angry staff, which will signal death for its productivity. To avoid this scenario, give your staff the necessary push before the new ERP system goes online.
The goal of deploying an ERP System is to streamline workflows and reduce costs, which can only be done if the new ERP does not carry the load of legacy applications. Before adopting new ERP software, make every effort to decommission outdated programs as soon as feasible.
Second, do not fall into the trap of expecting your ERP to provide what your legacy scenario used to provide. Otherwise, you would wind up setting and customizing your ERP like your old system, with no benefits. Some procedures will lengthen, while others will shorten. While implementing your ERP, be prepared to change your present procedures.
So, as you set off to move your business forward into the future, it pays to prepare for the challenges that lie ahead. While exploring the opportunity for an ERP implementation is exciting and invigorating, make sure you don't lose sight of all the hard work that still lies ahead.
And remember that you're not alone in your journey; there are plenty of professionals who have already gone down this road before and can help you get over these hurdles much easier. Eastern Software Solutions has been supporting businesses with its ebizframe Intelligent ERP Implementations for the past 30 years.
If you are looking for seasoned vendors for helping your business through digital transformation, then look no further. Contact us at marketing@ebizframe.com today or visit www.ebizframe.com for more information.
