ERP Execution Failures 8 Mistakes To Avoid

ERP stands for Enterprise Resource Planning. It is an essential element you should include in running and managing your company better. Did you know that a properly implemented ERP can help improve the communication aspects between you and the other departments in your company?

If you don't know yet, ERPs implemented accordingly can cut down your administration and operational expenses by more than 20%. Beyond that, almost 100% of company owners use ERP to implement their processes, and all these implementations were successful.

With that in mind, there is no doubt that implementing ERP is a huge move for all companies. Since they can make significant changes in your establishment, it is essential to do everything right. Proper planning is important to reduce the implementation timeline and save some bucks.

If you are new in ERP, here are the top 8 common mistakes you should be more mindful of:

1. Not Training Your Employees

ERP implementation is a huge solution that could significantly impact every department in your company. ERP implementation is more likely to fail, especially if your employees are not trained properly or are not 100% ready to adapt to these changes.

If your staff failed to embrace the changes, they could either look for manual workarounds or revert to their conventional work processes. It would be best to let each department know more about this new software system to prevent this from happening. Require project managers to train their staff.

How each project manager trains their staff will significantly impact your company's success rate of ERP implementation.

2. No Adequate Plan For Post-Launch Maintenance

It is worth highlighting that implanting ERP is a lifetime commitment. It is somehow a living organism that improves, evolves, and changes over time. With that in mind, it is important to prepare a plan that concerns your post-launch improvement and maintenance.

As a company owner, you need to consider your employee's opinions. You can assign someone to know the thoughts of your staff about the new software, the difficulties they encounter, and effective strategies to improve them.

Listening to your employees will help you implement ERP software properly and ensure its success in the future. Having a concrete plan for post-launch maintenance will keep the efficacy of ERP software in your establishment.

3. Addressing Fear Of Change

Knowing ERP implementation will give excitement to your top-level teams. But, the situation will be different with your staff and other departments that will use the ERP software. The success of deploying ERPsoftware to your company will depend on its end-users. Even though you have the best and most-planned implementation strategy, it would be useless if your employees and departments were afraid to address these changes.

To avoid this, make sure to assign department leaders who will answer the queries of its team members regarding the ERP implementation. Beyond that, the department staff will also be literate on how the software could affect their tasks.

4. Not Managing Data Migration Seriously

Data migration may be the smallest aspect in your department. But take note that it is one of the most important elements. Not preparing good data will give you difficulties in stepping up. Gathering important data and ensuring its effective importation could significantly improve the whole process.

Proper data migration involves data cleansing. This can help you avoid spelling errors and file duplicates. Doing so will let your company enjoy the most benefits of ERP software.

5. Not Setting Milestones

It is important that you set company milestones. This is because deploying ERP will take more than six months. As mentioned, ERP acts like a living organism. It is important to categorize milestones into minor and major when setting milestones.

When setting major milestones, make sure to include different aspects like deployment testing. Development, design, planning, and continued support. Under each aspect will be your minor milestones. For instance, under the planning phase, you can set minor milestones, such as assigning team leaders and roles of each member.

6. No Credible Leader

As of now, you may finally notice that having the right team leader is important for a successful ERP implementation. If your department leader does not know how ERP systems work, it could adversely impact your ERP deployment.

Although every staff has their first-time usage of ERP software, it is ideal to assign a leader who is strategic and detail-oriented. This is because they will be the ones who will guide the others.

Make sure to assign a leader that is assertive, has premium organizational skills, and can build and handle significant relationship with different departments.

7. Insufficient Commitment

It is very clear that ERP implementation can improve company processes and help you achieve business objectives. But take note that deploying it is not easy and involves slightly complicated processes.

In addition, ERP deployment takes longer than six months. So, ensure to set clear plans one year before the implementation. This will help you solve unseen kinks that may happen in the future.

If you are so busy and don't have enough time to do the early planning, hiring someone who can commit most of their time to facilitate and speeding up the process would be best.

8. Failure To Define and Plan Objectives

There is no installation button you can switch when implementing ERP. Thus, you need to define and plan your goals before deploying ERP to your company. Doing so will help you set solutions to meet your company's specific requirements. Beyond that, having a well-detailed roadmap will help you avoid distractions.

A planned roadmap is designed to ensure that your team members work as one and stay in the same place. It will also allow your departments to be more productive and cooperative during the whole process.

Final Thoughts

ERP implementation is exciting for some but stressful for others. But when you avoid the aforementioned ERP implementation mistakes, you can enjoy incredible results. Proper planning and execution will ensure success during your implementation.