A successful implementation of your new ERP software means better ROI. Here are some common ERP implementation mistakes to avoid.
You know that the right enterprise resource planning (ERP) software will improve your company’s bottom line by streamlining processes, reducing costs, and increasing overall efficiency. But the effectiveness of any ERP solution can be significantly impacted by its implementation.
This means you need to get it right the first time. A failed implementation can take months of fixes and backtracking before you start seeing any return on investment. Here are some of the most common ERP implementation mistakes, so your business can identify and avoid them.
1. Improper Planning
A detailed implementation plan is one of the first steps to ERP implementation success. High-level plans with assumptions or inadequate estimates of resources are some common planning errors many companies make. Your plan needs to be detailed and identify all the requirements and stakeholders as well as provide a logical sequence of tasks. It also needs to reflect realistic ERP expectations.
2. Not Investing in an Implementation Team
Does your implementation team have the right skill set? Implementing a new ERP is not a regular IT project. While your IT team may have been involved in implementation during their careers, they may not have been specialists or have the bandwidth to implement an ERP system alongside their other IT projects. For successful implementation, consider having an implementation partner or specialist on hand. Someone who can analyze your business needs and oversee the entire execution – this is likely to be the difference between a successful roll-out and failure.
3. Lack of Change Management
For a successful ERP implementation, having a change management plan – and sticking to it – is key. When you’re introducing a new business management system, you need to manage change across your technology, processes, and people. In many failed projects, companies have not focused on managing change across their end-users effectively or only offered basic training at the end.
For effective change management, a company should set proper expectations well early in the implementation process. Perform an infrastructure analysis, have a communications plan for stakeholders, and develop an educational or training program. Ensuring that your employees are on-board with the new changes and are well-trained means that they will be more likely to accept the new ERP system faster and with a higher rate of success.
4. Implementing the System in One Go
Implementing a new ERP system can be complex and the process is more successful when it is broken down into different stages. If you try to implement the ERP system in one go, it is difficult to determine all the requirements, train users, and then deal with the go-live process.
By breaking it down into smaller steps, you can ensure data is transferred properly, prevent your employees or end-users from becoming overwhelmed, and have time to determine requirements, test, and find gaps to ensure everything goes smoothly overall. Implementations take time, and unrealistic time frames will only create more problems for your business.
5. Lack of Formal Testing
To avoid the risk of failure, your new ERP system should never go live without comprehensive testing. Formal testing lets you identify and fix incomplete applications and errors. It also ensures the validity of all data and that business processes are properly defined.
Implementing an ERP system will always come with its unique set of setbacks and challenges. Having an experienced team of implementation partners will make your experience a lot smoother and easier. Book a consultation with the team at Kwixand Solutions to learn more about how we guide businesses through their entire ERP journey.