Be on the lookout for these red flags.
Companies of all sizes are looking towards high-performance ERP systems to solve data and communication problems. The ability to consolidate information, access data, and reduce workplace inefficiencies is a core value in any industry. Enterprise Resource Planning software enables these capabilities and unlocks business growth potential. Small businesses, mid-market organisations, and large enterprises all understand the value ERP vendors offer.
So why do so many ERP implementations fail? Gartner and McKinsey both report ERP implementation failure rates of more than 70% globally. There must be something that business leaders and their IT teams are overlooking. It turns out there are multiple things most companies overlook when undergoing ERP implementation. These common mistakes account for a significant portion of ERP failures.
Common Mistakes Companies Make When Implementing ERP Software
ERP implementations are designed to make business processes more efficient. There are many obstacles that can get in the way of efficiency, and any one of them can impact your ERP roadmap:
1) Underestimating the Timeframe
Organisations understandably want ERP implementation finished as quickly as possible. ERP vendors have to promise a quick transition or risk losing their customers’ business to competitors. This creates the perfect conditions for vendors to overpromise and underdeliver.
But it’s not just vendors who are to blame. Companies have to commit their top employees to the core team for the duration of the ERP implementation project. Those employees may spend up to 50% of their working hours on the project alone. If they don’t offload a major portion of their day-to-day tasks, then the business as a whole is extremely vulnerable to even the smallest delay.
Understanding the time and resources required for a successful ERP implementation is essential before starting the process.
2) Assuming There Is No Learning Curve
It’s important for businesses to understand that ERP implementation does not happen overnight. There is still work to be done even after the implementation phase is complete. The ERP deployment has to grow in line with the business itself, capturing new data points and communicating insights to employees as their needs change over time.
Your ERP solution won’t deliver the promised results if employees don’t use it effectively. This requires training and can even demand a shift in office culture towards ERP-enabled workflows and efficiencies. Businesses that fail to achieve employee buy-in often end up paying for technologies they don’t use.
3) Aiming for Standard Results Instead of Optimal Ones
Every business has a different definition of efficiency. This definition originates with the company’s mission statement and values. An ERP platform can deliver efficiencies to nearly any kind of business, but it has to be configured to meet the needs that business has.
There is a difference between automating a process and optimising it. A standard ERP implementation may be able to achieve the former, but only a customised, expert-led implementation will achieve the latter.
Pick a Capable and Experienced Team for ERP Implementation
Choosing the right ERP vendor is one of the most important steps towards ensuring a smooth and successful implementation project. Expert knowledge can mean the difference between a successful implementation and an expensive failure. Speak with one of our experienced team members at SMB Solutions to find out how our services can help you achieve enterprise efficiency and successful ERP implementation.