ERP implementation in an organization is a complicated and time-consuming task. It also costs a sizable sum of money and resources. It helps streamline the whole operational process so one can imagine how big a task it is. One has to be prepared for any additional expense it may incur. The work may be delayed because of some unforeseen problems in the current process. A successful implementation means clockwork like workflow and cost-effectiveness. But that is not how it goes every time. If planned poorly, it can burn a huge whole in the pocket and an organization can lose days of productivity. An organization can avoid such mishaps if it takes a few things into consideration before the implementation.
Let us see the top 7 ERP mistakes and how an organization can avoid them.
Poor planning: It cannot be overstated how much an organization needs to plan before even thinking about implementing an ERP. Every department of an organization will be brought on board from sales to operations to HR. Many organizations do not invest time in planning and implementing a generic ERP. This leads to confusion and delays in the projects and it costs a huge number of man-hours. It is a very basic problem and can be solved with little foresight and proper planning. An organization needs to prioritize their departments and the methods by which the implementation will be done. It needs to have a timeline of the whole process and a clear end date in mind. Having an internal evaluation team can help share the load of the process. After implementation, if there is an audit of all the processes, an organization will have a clear idea of where it is with the ERP.
Start with the customer – find out what they want and give it to them.
Not managing the needs: Understanding the needs of the organization is a topmost priority. One needs to find out what challenges there are currently and which department is lacking because of poor process. It can be keeping track of the goods in the warehouse. Or it can be keeping track of employees’ coming and going. Whatever it is, it needs to be addressed and written down. A comprehensive evaluation should be done with the whole team or the representatives of the teams. Once that is nailed down, one can start looking for an ERP which suits the organization the best and remove the errors in the current process effectively.
Not considering the end users in decision-making: This is one of the most common mistakes made by many organizations. ERP will affect the whole organization. But usually, when the decision of getting an ERP is made, only the top and middle management executives are brought on board and their decision is final. This is a huge mistake. The end users’ opinions matter a lot. They are the ones who shall be using the processes regularly. They have to be asked about their needs and what is lacking in the current process. And it doesn’t mean people from IT only. Every department of an organization should be sought after. They can help in finding the right ERP and it in turn makes the implementation process go smoothly.
Low budget for technical staff: An organization needs to understand the cost of the implementation and maintenance of an ERP. They can not afford to underestimate it. Usually, the management is also unclear about how much training that needs to be done by the employees for an optimal usage of the ERP. If an organization tries to cut corners and then hopes to get more output, the result is always going to be questionable. Proper budgeting is essential for the project to succeed. An inadequate budget is a recipe for failure. It might not be right away but one can expect it any time down the road.
Improper Customization: Customization is an important aspect of ERP selection and implementation. When one has understood the needs and challenges of an organization, it is time to choose an ERP and customize it as per the findings. Many times, an organization fails the first step of analyzing the needs and gets an ERP with broad customization. It not only costs more than it should have, but it gives unnecessary modules which are never going to be used. Management has to be extremely careful when it comes to customization. It can either optimize the usage of the software or it can be a burden on the organization and cost more than it should.
No thoughts about Maintenance Strategy: After the successful implementation of an ERP system, the job isn’t finished yet. An organization put the solution in place so it can achieve optimum productivity. It has to make sure it does. The system should work efficiently. It should give maximum ROI. It has to be maintained by continuous improvement. There has to be a maintenance strategy in place even before implementation. It helps take preventive measures and ensure that the system is running on an optimal level.
Not vetting the ERP implementation service providers: It is important to do thorough research about ERP service providers before making a decision. People always think that they should go with the big players and be safe. They can ensure them a huge ROI. But in reality, large ERP implementation service providers often do not have the understanding and specialization for industry-specific requirements. Moreover, one needs to evaluate what kind of customer support and deployment time the provider is giving. After-sales service is an important factor. Oftentimes organizations face problems in ERP functionality and they are not given proper and immediate support from the vendor. There are fewer service providers in the market who have a client-centric approach and exceptional after-sales support like CaretIT.
Though ERP implementation is a monumental task and it requires patience and resources, thorough planning in ERP implementation surely ensures success. An ERP solution can be a major factor for enhanced efficiency and resource optimization if done properly.
CaretIT provides Odoo ERP services at an affordable rate. Its consultants help develop an implementation plan that takes the activities and the risks into account and provides the best suitable ERP solution for an organization.