The 11 most common mistakes when implementing an ERP

Implementing an ERP system is one of the most expensive, time-consuming and complicated tasks an IT department can undertake. The potential for delays and unexpected expenses lurks around every corner.

The implementation of an ERP (Enterprise Resource Planning) system is a fundamental step towards optimizing a company's processes. A well-chosen and implemented ERP can increase operational efficiency, improve decision-making and drive growth. However, many companies face challenges throughout this process, making mistakes that can be costly. In this article, we will address the 11 most common mistakes when implementing an ERP and how to prevent your company from falling into these traps.

To help avoid costly mistakes, there are a few cases that IT executives, ERP vendors, and technology consultants advise on how to keep deployment from becoming a nightmare.

#1: Lack of planning

One of the most serious mistakes when implementing an ERP is the lack of adequate planning. Many companies skip the needs assessment phase and do not define clear goals, deadlines and budgets. This can result in delays, extra costs and frustration.

Planning is absolutely necessary if you want your ERP project to be successful. Many organizations do not do enough advance planning before beginning to evaluate ERP software. This often leads to confusion down the road because they may not fully understand their current processes and how to evolve them to maximize business benefits and be more efficient.

#2: Poor ERP Choice

Choosing the wrong ERP system is another common mistake. It is essential to select an ERP that meets your company's specific needs. Skipping this step can lead to insufficient functionality, integration difficulties, and rework.

#3: Not having the right people on the team from the start

Organizations often don't bring in the right people from the start for an ERP implementation.

ERP implementation is one of the biggest projects an organization can undertake and consequently, mistakes can be made and plans can not be fulfilled if the right stakeholders are not involved in all aspects of the decision-making process. For example, many organizations focus on obtaining executive approval rather than bringing together key players from across the organization, from finance, operations, manufacturing, purchasing, and warehousing, and IT.

#4: Not setting priorities

When implementing an ERP system, the single most important thing we can do to minimize (or mitigate) delays and speed up time to completion is to not multitask. Therefore, creating a priority system should be a concern for IT managers. The priority system should not only indicate when to do tasks, but it should also provide managers with priority issues.

#5: Not investing in training and change management

Lack of proper training is one of the most common reasons why ERP projects fail, ensuring that employees have the opportunity to become comfortable with the new system before it goes into production will work wonders for your company and increase your chances. success in ERP.

The lack of training for system users is a mistake that can harm ERP adoption. Make sure your team is properly trained to use the system and make the most of its features.

#6: Resistance to change

Resistance to change is a common challenge when implementing an ERP. It is important to involve employees from the beginning, communicate the benefits of the change and listen to their concerns to reduce resistance.

# 7: Underestimating the importance of accurate data

The ERP system is only as good as the data in it. So, if you want your ERP application to be successful, it is extremely important that proper programming and procedural parameters are put in place (from the beginning) to minimize the likelihood of errors.

#8: Not performing enough tests

Skipping the rigorous testing phase is another common mistake. Testing the system before deployment helps identify problems and adjust configurations, avoiding problems after deployment.

# 9: Ignore excessive customization

Over-customizing your ERP can be tempting, but it's also a mistake. This can make the system complex and expensive to maintain. Focus on essential customizations to meet business needs.

#10: Don’t “do away with” legacy applications (old systems)

If organizations do not actively work to decommission with current applications while running the new system, the end result is an ERP with all of the original applications hanging off of it.

The end result is another piece of software alongside the old systems that you are paying to maintain

ntion and support, paying for hardware and upgrades, when the whole point of getting an ERP system was to streamline workflow and reduce costs and waste.

#11: Not having a maintenance strategy

Customers who do not perform preventative maintenance are not benefiting from their ERP investment. By not applying maintenance, your system will quickly become obsolete (from a technical perspective) and so will your business processes. It is important to keep the kernel up to date, with the correct legal changes applied to avoid potential fiscal/tax problems, and with improvements in the applied technology.

After ERP implementation, many companies make the mistake of not providing adequate support. Inevitable problems can arise, and it is essential to have a support plan in place to resolve them quickly.

In this article we show how implementing an ERP is a complex journey that can result in great benefits or significant challenges, depending on the decisions made along the way. Avoiding the common mistakes mentioned above is essential to ensure the success of this process.

Vottax is your ideal partner to support you at all stages from choosing and implementing an ERP to post-implementation support and improvements. With our experience and expertise, we can help your company avoid these mistakes and achieve an effective implementation that will boost your growth and success in the market.

Want to know more? Consult our expert team here and ensure a successful implementation.

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