Top 6 Common ERP Mistakes and How to Avoid Making Them

“It’s fine to celebrate success but it is more important to heed the lessons of failure.”   – Bill Gates

While considering purchasing an Enterprise Resource Planning (ERP) system for your company, take the time to ensure you are selecting the best fit ERP software system to avoid any failures after implementation. Enterprise resource planning (ERP) systems can be huge investments of money, resources and time. And while a successful ERP implementation can help your organisation streamline workflow and cut costs, a poorly planned and implemented ERP can severely cost organizations, in terms of lost productivity and delay in completion of work.

To ensure your ERP implementation is a success, and to minimize potential problems we have come up with some common ERP mistakes and their solutions.

1. Inadequate planning – Strategic planning is extremely necessary if you want your ERP project to succeed. Many organizations do not plan enough before they begin an ERP software evaluation which often leads to confusion because they might not fully understand their current processes and how to develop them to maximize business benefits and efficiencies. To solve this problem, organizations should conduct an internal assessment of all of their processes and policies before choosing an ERP system.

2. Not understanding or using key features. Without knowing features, companies miss opportunities to automate business processes, complete functions faster, and meet business objectives. To solve this problem, it is advisable to create a list with all features, tracking usage, and occasionally reviewing the list to determine which features are being used and which are the most helpful. This knowledge catalogue can be used to train new employees, write test scripts, and help with review, compliance, and reporting requirements.

3. Underestimating the time and resources required – All companies underestimate the time and resources required to implement a new ERP system. So how can you calculate the necessary time involved? The time involved can be estimated by dividing the cost of the software by 100. Double that number if you plan to self-implement with minimal professional assistance. It is important to assign a dedicated project manager.

4. Not having the right people on the team – Sometimes, organizations do not bring the suitable team members together from the very start of an ERP implementation. ERP implementation is one of the biggest projects an organization can undertake, and consequently, mistakes can be made and plans might get out tracked if the right stakeholders are not involved in every part of the decision-making process. 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 employees who are actively engaged with the ERP implementation, who have an investment in getting it right from the start are benefitted.

5. Choosing the wrong vendor –  Simply purchasing ERP from a big name vendor, or one that has worked for someone that you know who isn’t in the same business, can be a huge mistake in the implementation process. You need to find an ERP vendor that is knowledgeable in your industry and will understand the unique needs of your business. Also, since you will need to have a long-term relationship with your vendor, look for an ERP software provider that offers certified ongoing support, product releases, user forums, and other business tools as part of their service.

6. Choosing the best fit ERP software – Finally the most essential mistake companies make is to install any ERP which belongs to the ‘one size fits all’ category. Your company is unique and so are its needs. Every organisation has specific problem areas and needs specific solutions for them. Therefore only the best fit ERP software system can bring the desired results of an ERP implementation.

Expand smERP is India’s best-fit cloud ERP system for fast growing businesses like yours. It empowers the mid sized manufacturers in the export and retail industry with real-time visibility and complete control over their business for faster expansion by simplifying complex business processes. 

With over 15 years of extensive R&D and market testing, we have developed a software that seamlessly fits into Indian Business. We are the OEM of this solution. Further, specific fitment through customization and integration are made for the company’s unique needs. All measures are taken to fit seamlessly into the existing business processes to deliver the maximum benefit of our solution.

Expand smERP cloud software drives maximum growth and ROI to your business.

At such an hour of national emergency, we are open for business and believe that with cutting edge technology even you can work remotely seamlessly with ease. To know more about Expand smERP and how it will transform your business operations please allow us to arrange for the best fitment test and product walkthrough by our BizTech Expert.