The Common Mistakes Businesses Make During ERP Implementation

ERP software solutions come in several types such as on-premise, SaaS, cloud, and hybrid model. Decision-makers often feel overwhelmed when determining which functions and features are the most important.

In this article, we are going to discuss the common mistakes that businesses make at the time of selecting, deploying, and executing an ERP system.

Inefficient Requirements Gathering

Automating business procedures with an ERP system looks easy but automating a bad one to improve its efficiency and speed will not reap results. It is important to invest time and make the necessary effort to analyse procedures that forms a part of the ERP requirements gathering.

It has to be done systematically. A business should identify and enhance the design of the current business processes. It should also figure out critical software pain points, address Business-critical issues, usage issues, and map out crucial processes before migrating to a new ERP solution.

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Absence of a maintenance plan

Outdated or obsolete ERP systems can cause security issues in the business processes.  It is important to have a plan and designate people for the project maintenance. It will ensure that the system is regularly updated with innovative apps and executes smoothly and efficiently.

Not Engaging A Cross-Departmental Team In The Decision-Forming Process

To implement an ERP system, a business should include professionals from different departments and stakeholders in each step of the decision-forming process. Their inputs and approvals will help find and implement the right solution.

Thus, the engagement of all those departments (IT finance, manufacturing, warehouse, operations, etc.) who are going to use the ERP system is necessary for the desired outcome.

Inadequate Budgeting

This is another big mistake that some businesses do when they implement any ERP solution. They underestimate the expenses associated with hiring technological staff, training, maintenance, and upgrade.

It is thus required that businesses should take out time to properly budget to recruit and train the ERP implementation team. This will help in the smooth execution of the system.

Not Choosing The Right ERP Deployment Model

Different ERP deployment methods are available to cater to the needs of different types of businesses. Selection of the wrong deployment model may lead to unfavorable outcomes. It is important to understand the features, pros, and cons of the deployment model and compare them with the other deployment methods to arrive at the right decision.

Internet connectivity, subscription types, affordability, scalability, security, ease of information access, ease of use, server’s efficiency, type of hosting, etc. are some of the important factors that should be considered to ensure successful ERP implementation in the business.

Conclusion

The right ERP implementation requires finding the right ERP solution and delivery model based on the needs and goals of the business. In addition to implementation, regular maintenance will help prevent it from becoming outdated or obsolete. A business should understand that ERP implementation takes time and should make consistent efforts in this direction.

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