7 Common ERP mistakes and how to avoid them

Thu, 13 Jan 2022 09:00:00 -0500

Did you know that 50% of ERP implementations fail the first time around? Even after endless meetings, communicating with multiple departments, and complying with deadlines, 29% of enterprise real estate implementations become unsuccessful in the end. That’s mainly because companies repeat certain mistakes during the process.

And if you're looking for an ERP solution for your business, you may have to consider multiple things and avoid the mistakes usually made. We’ve covered a list of seven common ERP mistakes and ways to avoid them to help you ease your process here.

Seven common ERP mistakes

Around 50% of the companies are upgrading to ERP systems soon. And if you're planning to upgrade and implement an enterprise resource planning system too, here are the top common mistakes to avoid during the process for a successful implementation. Avoiding these mistakes can optimize your process and benefit your business.

1. Not keeping everyone in the organization up-to-date

Having an ERP system go-live is not easy, and it does not always go as expected. Enterprise Resource Planning implementations take 30% more time than estimated to go live. And taking extra time means reaching perfection to avoid failures. But sometimes, companies do not keep everyone updated about the process or the progress, which eventually leads to confusion or conflicts.

Do not make the mistake of not keeping all members and other departments informed during the process. Spend enough time to communicate effectively about the strategies and your plans and ensure everyone is on the same page. 

2. Going with a cloud-based or on-premise ERP without the right research

62.7% go with cloud-based ERP solutions rather than on-premise ERP. Sure, in a world where technology is dominating and easing the business processes, going with a cloud-based ERP solution can seem to be the best bet. Of course, cloud solutions are gaining popularity due to the range of features it offers.

But it's essential to conduct thorough market research, understand what's best for your business, while keeping the budget in mind. Do not mistake going for a cloud-based solution and changing your business processes for it. You should always get a software solution that works well with your business processes and not the other way round. 

3. Not knowing whether to get it customized or not

26% of an organization's employees use the ERP system. It’s essential to know who uses the enterprise resource planning solutions to implement the right one for your business. Most companies get it customized according to their business processes, and some go with the ERP solution providers' plans.

While it's up to you to choose the right one for your business, you should do your research and know what's right for your business. But going for a customized solution is always great as it increases the efficiency of your business. However, if you've got a tight budget, talk to consultants and choose the right one. KriyaGo can help you decide the kind of system that's right for your business. If you want to know more about it, reach out to us today! 

4. Implementing it without a proper plan

88% succeed due to ERP implementation, and you can be among the 88% if you plan well. Planning is crucial to implementing an ERP system for your system. Most organizations don't take the time to understand the challenges or have a change management or communication plan before going to the next steps. Set a timeline and budget for a smooth flow. It also avoids conflicts along the process. 

5. Including employees only from a single department

One of the most common mistakes is not getting all the departments on board. You should specify the need for change for both the end-users and the project managers to successfully implement the ERP system successfully.

Not keeping everyone informed can negatively affect the implementation process and create confusions. Therefore, communicate about the change and your goals. Articulate the strategy and have everyone on the same page throughout the process. Most often, organizations don't involve everyone during the process, reducing the chance of successful implementation. 

6. Choosing features over flexibility

The most common mistake that you should avoid is to go by the features. Ensure your ERP system meets your business goals – that is, to improve efficiency. Of course, a system with all the necessary components will add tremendous value, but it shouldn't be only about that.

You should also consider its flexibility and customization to meet your long-term goals. If the system is not flexible but has all the features, it may not be good for your business in the long run. 

7. Overlooking maintenance plan

What most organizations do is, implement the system, and that's it! They overlook the maintenance of it and only understand the importance of it when something goes wrong. A system maintenance plan is as important as any other step.

So, always think ahead and have a maintenance plan for your ERP systems. Once you're done implementing, training your staff is the next crucial step. You should also have your support and maintenance plan for a smooth flow.

Choosing the right ERP solutions reaps fruitful benefits for your business, and it's up to you to make the right choice. Right from researching, planning, strategizing and implementing, you have to keep everyone informed to avoid costly mistakes.

Having all the right functions and flexibility can positively impact your business and also ease the process. Automating tasks with ERP solutions can be great, but it is not just about that. You need to look at the broad picture and see how best it can benefit your business. 

Implement ERP solution for your business with KriyaGo!

One of the main reasons companies implement ERP solutions is to increase efficiency and if you want just that for your company, talk to our KriyaGo team today! We provide ERP software and consulting services for businesses and also provide consultations for your business. We not only implement the system but also provide training, maintenance, and support for your business.

So, if this is something you've been looking for, get on a consultation call with us today! 