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.
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.
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.
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.
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.
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
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.
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
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.