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8 mistakes you should avoid in ERP implementation Canada

A lot of customers ask us whether KKE Manage ERP will be successfully implemented as they had some previous bad experiences with earlier vendors or places they worked for earlier. Over a period of time we have compiled reasons from various organisations as why ERP implementation failed in their organisation and what one should avoid having these common mistakes compiled.

  1. Poor understanding of your organization Before deciding about the ERP system required for your organization, a detailed study of your expectation from any system is very important. The goals we wish to achieve from the ERP system should be prioritized.  Generally, the goals of the ERP system should primarily take care of your key value chain functions. The critical tasks and secondary goals of the organization should also be noted. Once the study of the goals and tasks is done, it will be very easy for your organization to look for the right features in the ERP system. Poor understanding of the organization can lead to selection of an ERP system which might not satisfy your basic requirements.
  1. Mismatch of size and processes No ERP software is good or bad. But a misalignment between the ERP system and your organization type can cause unnecessary inconvenience to you and also incur additional costs. The ERP system selected by you should be according to the size or scale of your business. An ERP system suitable for an organization of more than 800-1000 employees may not suit a business with about 150-200 employees. Similarly, an ERP system suitable for a manufacturing industry may not be very suitable for an education industry. These examples seem very obvious, but a small mistake of mismatch can reduce your productivity. You are choosing an ERP system to improve your efficiency and productivity and anything otherwise is definitely failure of the system.
  1. Too much too fast – poor training Apart from a good system that suits your organization structure and processes, it is very important for your employees to adapt to the new way of working. Even before choosing the ERP system, the employees should be informed about the changes that their company is planning to go through. A company may have bought the best ERP available but having adequate time and budget for training program is more necessary. A proper change management program should be planned to utilize the full capability and potential of the ERP system.
  1. Losing flexibility for saving money Planning long term requirement of your ERP system can help you in anticipating future investments. Sacrificing flexibility and choosing a slightly rigid system for saving immediate costs may seem fruitful initially. Understanding the unique needs of your organization and choosing a modular or customizable solution can avoid additional cost on upgrades and reinvestment in future.
  1. Underestimating the potential of your ERP system ERP implementation should be a company-wide program. All departments of the organization should involve themselves in the change. To realize the full potential of the ERP solution, alignment of all business process is very important. This can only take place if all the departments actively participate in the implementation of the new system. This also ensures a feeling of ownership over the new system by the employees of the organization.
  1. Over spending on extensive features Selecting the best ERP in the market might seem to be the easiest option to avoid any problems in future. This might not be true for your organization. Extensive features may not be required for your company size and processes and will cause underutilization of your resources and investment.  Choosing the right ERP system features for your organization and also having long term assessment of future requirements is the key for running an efficient ERP system.
  1. Ignoring the importance of load testing Active load testing of the new ERP system ensures a trouble free working in future. Testing a large number of users and testing critical functions before the system is handed over for regular functioning can reduce the downtime of the ERP system during critical period. Functions related to order processing; dispatch and payments should be given special attention.
  1. Poor maintenance and support strategy Do not ignore maintenance. A clear support strategy in place before finalising the ERP vendor should be decided. An annual contract with the vendor or a third party organization can be done for quick service, training and support to avoid any inconvenience to your employees during their critical work period.
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