Enterprise resource planning is a cross-functional integrated system that streamlines the information flow from various departments under one database. This improves communication, return on investment, inventory management, decision making. Most of the business owners are anxiety with the benefits of ERP, but they fail in reaping out those benefits. In this article, you will where the business owners make their mistakes in implementing the ERP and how to avoid such mistakes.
1. Not taking the time to map the current business process: This step is the foundation for the rest of the project. But most of the organizations skip this step due to many reasons. For example, current business process is not in structure and it takes lot of time to document them at one place and also it stops the flow of current work. Therefore, they don’t make upfront planning before they begin the ERP project.
- How to avoid it?
- Clearly define the goals and objectives of implementing the ERP.
- Build ERP evaluation team, these people are responsible for effective project management.
- Conduct internal audit on all the business process before going to choose ERP system.
- Prioritize the key business requirement based on the satisfying the immediate needs of the business, the one which influences the business process, followed by other objectives.
2. Poor planning with low executives: Most of the time, ERP initiatives starves for the corporate funds and resources. Implementing it without taking the inputs from the major participants or not sharing the vision to the organization.
- How to avoid it?
- These are big and complex projects, without the right management support they may fail.
- Involve major participants and top management to set-up corporate objectives and goals to commence the ERP.
- During its implementation, provide up-to-date information to the top management.
3. Not choosing reliable ERP vendor: ERP implementation may fail because of choosing unreliable vendors. After the implementation,business owners will be surprised with system functionality restrictions, lack of technical capabilities which they have assured and ultimately it disturbs the business process.
- How to avoid it?
- Do thorough research in the market about ERP vendors. And choose the one who are right for your business based on the past experience and achievements in the industry.
- Take the opinions from the companies of the same industry who have already implemented ERP.
- Find what they like and dislike about the product.
- Ask for the references
- Know the ERP advantages, disadvantages, features, functionality, challenges etc.
4. Change Management & Inadequate Training: ERP is an integrated system that forces to change the business process and roles of the employees. Here, where the employees resist to change their roles, process which they have learned from many years of work. And even inadequate training makes difficult for the employees to work efficiently.
- How to avoid it?
- Educate all the employees about the benefits of ERP.
- End-user training should start before the ERP implementation. This helps the employees to accept easily of their new job roles.