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.
