Here we discuss some of the most common mistakes IT leaders make in the selection and deployment of an ERP system— and what they can do to prevent or avoid them.
Today there are more options than ever before to choose an ERP solution. There is a brilliant array of solutions from on-site systems to cloud-based software-as-a-service to industry-based solutions. And when trying to determine which features and functions are the most important, decision-makers can feel confused. Even though the software is very intricate, there is an unfortunate chance to commit mistakes, which we all want to avoid in spite. These mistakes may be harmless, but they may also lead to potential failures in your company.
Here we identify the common mistakes that executives usually make when selecting, deploying or implementing an ERP system and the best ways to avoid making them.
Not collecting requirements carefully
It is very common to use an ERP system for the automation of existing business processes. While this can be understood conceptually, you must take the time to analyze those processes within your ERP requirements. Implementing the new ERP system will be a way to identify your business processes and improve them. But automating a bad process only accelerates a bad process.
Not involving end users in decision-making
Many organizations focus their time and effort on obtaining approval from leadership executives when implementing an ERP system, instead of involving key employees who will use the system the most. Involving employees not only from IT but from finance, operations, manufacturing and warehouse throughout the organization is crucial. The involvement of stakeholders throughout the organization in every step of the decision-making process will ensure that everyone is invested as smoothly as possible in finding and implementing the right solution.
Not properly budgeting for IT staff
Managers often underestimate the costs involved in implementing the project, including the maintenance and talent needed to successfully launch the project. In cases where organizations try to accomplish more with less, failure of implementation results. Take the time to budget properly and consider the talent behind execution so that you will not be confronted with problems or surprises later.
Implementing the system at once
ERP systems are complex and all implementation requirements cannot be determined before the system is implemented, trained and used. This is the traditional waterfall model implementation and it doesn't work in case of ERP effectively. Rather, a more agile approach needs to be adopted, with small steps involving end-users taking every step to identify requirements, test, find gaps and then repeat them.
No maintenance plan
The ERP system takes time to implement, but work hardly ends when the system has been implemented successfully. The companies should put into practice a maintenance strategy to make sure that the workers conform to what has to be done to regularly maintain and enhance the ERP system so that it doesn't become outdated or obsolete. Outdated ERP systems can endanger companies with security issues and holes in their business processes. The ERP system will always work fine and will be up-to-date with the latest applications, provided it has a fixed plan and assigns who is responsible for the project and maintenance at any given time.
Summary:
In order to prevent common ERP errors, experts make realistic estimates of implementation time, include all levels of the organisation, and address compliance issues from the beginning.
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