Common ERP Mistakes Your Company Can Avoid

9/1/2010 at 10:41 am by The Sage ERP Team

As with any major project, first-time ERP users – and even some veterans of the service – are bound to make a few mistakes when implementing a system. Implementing an ERP system is something business owners want to get right on the first try, since the old adage “practice makes perfect” gets a little flimsy when mistakes can cost businesses hundreds, even thousands, of dollars.

If you want your business to be profitable quickly, ERP doesn’t leave a lot of room for practice. But avoiding these few simple and common mistakes can make sure that your ERP system gets to work quickly and efficiently, making you more money.

Many ERP users make the mistake of thinking that ERP is just a type of software. They view it as the domain of the IT department, not something that human resources personnel or upper level management need to concern themselves with. However, ERP is a company-wide solution that requires the cooperation and comprehension of all divisions. Viewing ERP from only the IT perspective is a surefire way to miss out on some of the system’s greatest benefits, such harmonizing a company and synchronizing departments.
While ERP is intuitive, it does require a certain amount of training. Don’t assume that you and your employees can just “wing it” and figure it out as you go. Making sure that everybody in the corporation is properly trained in how to best use the ERP system is certain to improve the returns on your investment. Everything in your company will flow much more smoothly when every employee knows how to work with the system.
Lack of planning is a quick way to doom an ERP system. It’s very important to know where you want to migrate your data, which resources will be allotted to which departments and who will be in charge of each of aspect maintaining the ERP system itself. Deciding these things beforehand, either by yourself as an executive or as a corporate team, will eliminate what could potentially become a good deal of confusion and difficulty.
Know when it’s time to upgrade, and do it in a timely fashion. ERP systems are a big investment, so it can be tempting to keep an outdated system around rather than shell out the money for the newest incarnation. However, the more time you let slip by, the harder it will be ensure a smooth transition between your old ERP and the new system you will eventually need. So bite the bullet and upgrade systems when your old one is starting to lose its ease and efficiency – you’ll get a much greater return on your investments if you do.

You’re not perfect, so don’t beat yourself up if you make a few mistakes when you begin using an ERP system or when you switch from one type of system to another. Just take your time, be careful and plan ahead, and you’ll have your ERP system up and running smoothly in no time.