Eight Common Mistakes Companies Make When Implementing an ERP System
August 23, 2022 •ROARK
We're going to talk about some of the most common mistakes businesses make when implementing an ERP system.
As a business owner, you know that having a good ERP system is essential to your success. But making the switch can be daunting, especially if you're not familiar with all the ins and outs.
So let's dive into some of the most common mistakes businesses make when implementing an ERP system. So you can avoid them and make the switch as smoothly as possible.
1. Not Doing Research on All Options
One of the most common mistakes companies make when they are looking to implement an ERP System is not doing enough research on all of their options.
ERP systems can be very complex, and there are a lot of different vendor options out there. It's important to take the time to evaluate all of your options and find the system that is the best fit for your company.
There are a lot of different factors to consider, including cost, features, scalability, and support. Taking the time to do your research upfront will save you a lot of time and money in the long run.
2. Not Budgeting Enough Money
Many companies make the mistake of not budgeting enough for their ERP system implementation. This can lead to a number of problems, including delayed implementation, poor system quality, and missing features.
It is important to remember that an ERP system is a complex piece of software, and it takes time and money to properly implement it. By not budgeting enough for the project, companies are putting themselves at risk of an unsuccessful implementation.
If you are considering implementing an ERP system, be sure to allocate enough resources to ensure a successful project.
3. Underestimating Effort - Especially on Current Employees
When a company makes the decision to implement an ERP system, it is important to accurately assess the amount of work that will be required from current employees.
Oftentimes, companies underestimate the effort that will be needed to properly implement the system, and as a result, current employees are left feeling overwhelmed and overworked. This can lead to frustration and resentment, and can ultimately damage employee morale.
To avoid this situation, companies should take the time to carefully consider the amount of work that will be required from employees during the implementation process.
By doing so, they can ensure that employees have the necessary time and resources to successfully complete the project.
4. Not Bringing in an Experienced Expert During the Implementation
One common mistake companies make when implementing an Erp System is not bringing in an experienced consultant during the implementation.
ERP Systems can be complex and difficult to understand, and so it is essential to have someone on hand who can help with the process. An expert will be able to identify any potential problems and offer advice on how to avoid them.
They will also be able to help with the set-up of the system and ensure that it is running smoothly. In addition, a consultant can provide training for staff members, so that they are able to use the system effectively.
Without the help of an experienced consultant, it is easy for companies to make mistakes that could prove costly in the long run.
5. Failing to Integrate New ERP with other Business Applications
Companies that take the time to integrate their ERP system with other business applications can enjoy a number of benefits.
They can improve efficiency by eliminating duplicate data entry, for example. They can also make better use of their data by integrating it with analytics tools. And they can be more agile in their decision-making, as they'll have access to real-time information from across the business.
Simply put, integration is key to getting the most out of an ERP system.
6. Not Properly Training Employees
One of the most common mistakes companies make when implementing a new ERP system is failing to properly train their employees on how to use it.
An ERP system can be a complex and intimidating piece of software, and without proper training, employees can quickly become frustrated and overwhelmed. As a result, many companies see a significant drop in productivity during the transition to a new ERP system. To avoid this, it is essential to provide comprehensive training for all employees who will be using the system.
This training should cover everything from the basic interface to more advanced features and should be tailored to the specific needs of each individual. Your consultant often can be a great resource for this.
By taking the time to properly train your employees, you can minimize the disruptions caused by a new ERP system and ensure that everyone is able to take full advantage of its capabilities.
7. Not Planning For Future Upgrades
Implementing an Erp System is a huge undertaking for any company. It can be disruptive to business operations and require a significant investment of time and resources. For these reasons, it's essential that companies take the time to plan for future upgrades.
One common mistake companies make is assuming that the system they implement will be able to meet their needs indefinitely. However, as business needs change and new technologies emerge, it's often necessary to upgrade an ERP system.
By planning for future upgrades from the outset, companies can avoid disruptions down the line and ensure that their ERP system remains effective over time.
8. Expecting Too Much Too Soon From Your ERP System
One of the most common mistakes companies make when implementing an ERP system is expecting too much from the system too soon. It's important to remember that an ERP system is a tool, not a magic solution that will immediately fix all of your company's problems.
Like any tool, it takes time and effort to learn how to use it effectively. Trying to do too much too soon can be overwhelming and lead to frustration on the part of users. It's important to set realistic expectations for what the ERP system can achieve and to give users time to adjust to the new system.
Putting in the effort up front will pay off in the long run, resulting in a more efficient and effective company.
Avoid these common mistakes - Work with ROARK.
In short, ERP implementation can be difficult and fraught with potential mistakes. It's important to be aware of these mistakes and take steps to avoid them in order to have a successful implementation.
At ROARK, we have expert consultants who've implemented ERP systems that made lasting impacts on the companies they worked with. Interested in ROARK helping you implement your next ERP System?