Implementing an ERP system requires a lot of careful planning. Organisations will be investing a significant amount of money into a new system, so it is vital to form a solid strategy.
A recent article by PC Advisor has collected the thoughts of some industry experts across the field on how to get the most from a new ERP implementation. Below are some of the key thoughts on common mistakes .
ERP Mistake #1: Poor planning . “Planning is absolutely necessary if you want your ERP project to succeed,” says Erik Kaas, vice president of Product Management for Mid-Market ERP products at Sage. “You simply can’t wing ERP.”
ERP Mistake #2: Not understanding or using key features. “In our annual ERP survey, only 46 percent of respondents reported having a good understanding of which features they were using in their ERP system,” says John Hoebler, managing director, MorganFranklin Corp., a business consulting and technology solutions company. “This is shocking, considering the millions companies invest in [their ERP systems]. Without knowing features, companies miss opportunities to automate business processes, complete functions faster, and meet business objectives,” he says. In addition, “upgrades, enhancements, and maintenance are more costly, and less likely to succeed.”
ERP Mistake #3: Not having the right people on the team from the start . “Often times, organizations do not bring the right people together from the very start of an ERP implementation,” says Beasley. “ERP implementation is one of the biggest projects an organization can undertake, and consequently, mistakes can be made and plans might get derailed if the right stakeholders are not involved in every aspect of the decision-making process,” he points out. For example, many organizations focus on getting executive approval, instead of gathering key participants from across the organization, from finance, operations, manufacturing, purchasing, and the warehouse, in addition to IT. The benefit: employees who are actively engaged with the ERP implementation, who have an investment in getting it right, right from the start.
ERP Mistake #4: Not setting priorities .“When implementing an ERP system, the single most important thing one can do to minimize delays and accelerate time to completion is to reduce multitasking,” says Yoav Ziv, vice president, Realization , a project management specialist. “People work much slower when they are juggling multiple tasks and constantly switching gears,” he argues. Therefore, creating a priority system should be a top priority for IT managers. “The priority system should not only indicate when to do which tasks, but should also provide managers with the issues they need to resolve, per priority,” he says. In addition, “ERP implementation managers need to implement a rigorous issue resolution process to act upon those signals and remove issues immediately in order to avoid delays.”
ERP Mistake #5: Not investing in training and change management. “A lack of proper training is one of the most common reasons that ERP projects fail, and it can also result in employees resenting the new system because they don’t understand it,” explains Kaas.
ERP Mistake #6: Underestimating the importance of accurate data. Your ERP system is only as good as the data that is in it. So, if you want your ERP implementation to succeed, “it is imperative that proper programming and procedural parameters are put in place [right from the start] to minimize the likelihood of errors,” argues Martin Levesque, director of Professional Services, iDatix , a document management and workflow solutions provider.
We think these are some of the most important to think about as they can largely dictate the output you can expect from your ERP system. By taking the time to put the right people in place of the project, provide training and ensure data quality, your organisation vastly increases its expected return on investment.
If you are thinking about implementing an ERP system, talk to Oakley.
