By Katie Foley
An ERP project is both a large financial investment and time investment. A successful ERP implementation results in increased efficiency and productivity, however there are many pitfalls (unexpected costs, delays, etc.) to watch out for along the way. To avoid costly mistakes, check out our list of the top five most common ERP mistakes to avoid.
You can avoid ERP implementation failure by putting the time into thoroughly researching all potential ERP vendors to make sure you pick the perfect match for your organization. Put together a detailed RFP to ensure the ERP solution has all the necessary functionality, have potential vendors come onsite for a live demo, and ask for references in the same line of business.
Be sure to set realistic expectations when it comes to the time and resources involved in an ERP implementation. Take the time to properly budget how much time your employees will need to put into the ERP project for it to be successful so there are no surprises along the way.
ERP implementations often fail if employees don’t understand how to use the system or why the company is implementing the system. It helps to have company leadership on board with the ERP project so that they can stress the importance of training to all employees.
Choosing an ERP project leader that has experience with ERP implementations in the past is extremely important as this is a huge undertaking. The chosen ERP project leader should have the respect of employees across all departments to ensure good communication and cooperation throughout the project. An enthusiastic leader can help employees ‘buy in’ to the idea of the new software solution when they may be skeptical.
An ERP project doesn’t end after going live. First, it may be in the best interest of the ERP project to do a multiple phase implementation. So, when you finish implementing phase one or your top priorities, then it’s time to make a plan for implementing phase two. Secondly, be sure to keep up with the latest versions of the product to make optimal use of your investment. Thirdly, invest in ongoing training – this could mean having a consultant onsite every so often to do a refresh of best practices; getting a business assessment done when you want to make a change, but don’t know where to start; or attending your ERP vendor’s annual customer conference to stay up to date on the software.
Although worth the time and financial investment in the end, taking on an ERP project can be a daunting task. Watch out for these five common pitfalls to ensure ERP implementation success!