Avoidable ERP Mistakes

11/9/2010 at 11:56 am by The Sage ERP Team

Implementing a successful ERP system shouldn’t be a challenge, as long as you’re well-educated. When ERP systems fail, it is usually the result of completely avoidable mistakes – mistakes you don’t have to make if you follow our tips. Your business doesn’t have to become an unfortunate ERP statistic, as long as you follow some very simple advice.

When you know what you’re doing, you’re almost guaranteed to succeed. Preparation and knowledge are key to understanding how you can avoid these common ERP mistakes that all too often lead to project failure.

Trying to cut corners
It’s only human to want to find the least expensive way of completing any project, including ERP implementation. But there are some things you just shouldn’t skimp on, and this is one of them. Every part of an ERP implementation project has separate and important value, meaning that no part can be eliminated or skipped without affecting the entire project.

While it may be tempting to cut back on maintenance costs or training, doing so is sure to be harmful. In the end, you’ll be much better off paying the costs up front and avoiding future problems than you will be dealing with a very expensive ERP failure. Remember, these costs are an investment in your future. If you handle them correctly, they’ll pay off handsomely when the system proves to be a huge success.

Delaying or eliminating training.
Training is one of the most important parts of any ERP implementation project. Think about it this way – you wouldn’t send a bunch of American men out to play in a cricket match, would you? Most of us in America don’t know anything about cricket except that it involves a bat and some silly white outfits. If you sent a bunch of your friends out onto a cricket pitch, there’s no doubt they’d get creamed. They wouldn’t understand what was happening, they’d be unable to participate to the best of their potential and they’d no doubt end up getting very frustrated.

ERP is the same way. You need to make sure that your employees are properly prepared to participate in the “cricket match” that is ERP – since, for many employees, it’ll feel just about that confusing at first. Proper training is the best way to reduce employee resistance and ensure that every single worker in your operation is ready – even excited – for the go-live. Having employees who are eagerly anticipating the benefits of ERP is one of the best ways to ensure ERP success. After all, employees are the system’s end users in most cases – their attitudes can decide its success or failure.

Rushing.
Most ERP projects take more than a year to complete – 18 months on average, in fact. Thinking that ERP implementation is fast and effortless is a major mistake that many companies make when embarking on their projects. If you want to reap the rewards, you have to be willing to put in the effort.

The software can be implemented in a matter of days, maybe even hours, but getting it to work for your business is an entirely different matter. Getting the most out of your ERP software is a long and involved process that requires intense dedication. If you really want to succeed with ERP, you need to commit yourself and understand that the process may take a while, but it will be worth it when you’re running a more efficient, profitable business thanks to enterprise resource planning.

ERP failure is 100 percent avoidable. Just watch out for these simple mistakes, and you’ll be sure to succeed.