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This is the second post of two. Click here for part one!
In the previous article, our experts shared five mistakes that companies make during ERP implementation. Here are the other five mistakes that you should avoid.
Mistake #6 – Starting without a Key user group that includes an executive sponsor.
The ERP project will overhaul business processes, roles, standards, responsibilities, so a bottom-up strategy will not work here. You need a group of effective and dedicated seniors to oversee and steer the project. Conflicts will arise during a big project such as this, and a senior executive can assign accountability and make decisions.
This group of people should meet regularly to stay updated with the project and apply their input whenever necessary. They can keep track of project milestones and keep CEO/Board informed about the progress of the transition. Think of the senior council as the captain of a ship, steadily steering the ship over choppy waters so you can reach land safely.
Mistake #7 – Beginning too late to address all data-related things.
Remember that the systems are only as good as the data entered. You need to have consistent and up-to-date data so you can run the company in an efficient and effective manner.
Think about the data from the day you start the project. It is disastrous for a company to hold off addressing the quality and accuracy of data until late in the project. Note that ‘data’ includes properties such as standards, integration, architecture, cleansing, and so on.
Determining what data standards to employ takes time. You may still want important information about customers, accounts and vendors remain intact. Clean and transfer the existing data so it doesn’t interfere and cause confusion.
Mistake #8 – Failing to plan for the interim performance dip after startup.
‘Failing to plan is planning to fail’, as the adage goes. If you do not have a concrete plan in place when implementing the ERP, you will suffer. It should be clear by now that adding an ERP will cause you to replace redundant systems and programs. This may cause an upheaval in business processes and operations. After an ERP project goes live, there will be an almost inevitable drop in the company’s level of performance.
The team and users need time to get used to the new software and are going through a learning curve. You should expect to see a decrease in the speed of manufacturing of products along with a decline in the pace and efficiency of the company. However, through the strong planning, risk analysis, and educating of your company, you can minimise the dip, if not eliminate it. Even projects that have gone smoothly during the execution phase have seen a dip in performance, and it is up to you to combat it.
Mistake #9 – Critical new requirements being uncovered late in the development process because you did not perform a careful analysis.
One can never be too careful when implementing and analysing ERP. If you don’t analyse the project on time, you could find out something crucial deep into the implementation process.
Do not work backwards from the completion date, for you are almost guaranteeing project failure. Just like in the seventh mistake, procrastination will be your downfall. Only on rare occasions does a project go smoothly from start to finish. You will encounter speed bumps along the way. Unexpected setbacks will arise, leading to deadlines not being met.
Do not skip the testing phase or any phase because you are behind schedule. Never cut corners just to get work done on time because the quality of the product will decrease. Also, you might have to spend even more time to fix the errors. The solution is to set a realistic timetable with an outline of what you will analyse and when, and stick to it.
Mistake #10 – Assuming the journey is complete when the project goes live.
The founder of Softwarehunt.in Vikram Seth often uses the golden words for any software implementation – “Rapid Implementation; Gradual Customization.” The end is just the beginning. You’ve taken so long to help it start. Why not stay to enjoy the fruits of your labour?
The life expectancy of the ERP is somewhere between five and ten years (though we see that reducing in the near future) . That is a lot of time in the business world. Employees should keep nurturing the ERP so it can grow. You can customise it as time goes by according to your needs. You can learn from your mistakes. Make sure you retain a subset of the installation team to enhance the application, work out the kinks and problems, and improve the entire system overall.
An important thing to keep in mind is that technology alone is not enough. The people behind that technology must work hard and smart. They should all have a good understanding of the ERP and be on the same page. Avoidance of the costly mistakes made by people before you trumps over fancy technology any day. The tech is just there to make it easier to dodge obstacles.
If only there were a company that could help you select the right ERP in a mistake-free manner. Guess what? There is! SoftwareHunt can help.
What can SoftwareHunt do for You?
With a team that has over 24 years of experience in setting up business software solutions , SoftwareHunt provides dedicated services to clients with the same passion and verve
SoftwareHunt keeps up with what’s happening in the ERP realm and will diligently follow up to bring you the best recommendations in the world. That’s our promise and we will never swerve from our goals.
Due to our experience in the field, we can negotiate with many of the vendors to offer you the best possible deal. We have no sales targets, allowing us to offer unbiased advice on whatever ERP fits you.
To avoid costly ERP Implementation aftershocks, be sure to avoid these ten mistakes and allow us to help. By doing so, you can protect an ERP project and help it along the way.
Call us today @ 02233494500 for a free discussion about your ERP needs or visit our website softwarehunt.in . You can also email us at [email protected]