Avoid pitfalls when migrating to CRM/ERP.

Many articles talk about ‘why” and ‘benefits’ of migration to ERP/CRM and only a few are sharing mistakes and pitfalls. 

As Arabic proverb says, “Duck’s first dive into the water tail first.”  [Don't do like guys on the picture]

The main concern will be to limit unnecessary expenses, avoid emotional stress and tension between the teams. Tension might overheat the engine and brakes of your vehicle, leading to a big loss. 

Have a look at a few points to think about before making a call.

• Difference between ERP and CRM

Historically, CRM is focusing on the management of customer relationship while ERP is mainly covering the resources planning across the enterprise and ensures its best possible use. CRM focuses on increasing sales originally, but ERP gives emphasis on reducing costs. However, modern CRM is already enhanced by addons/off-the-shelf modules that are making CRM more tailored, giving a suite of the whole bunch of enterprise applications focused on resource planning, automation, analytics and engagement.

• A Marriage with an ERP or CRM

Before blindly choosing any CRM, do proper research of all applications and software that a company use and pay for. Sum up all the expenses and calculate per each employee. Get a full understanding of what you currently have and use by creating a table of users, roles, security levels, and applications available per user/team/department.

Check how your Data look like, what is the format/structure and what kind of export files you will have in hand (it will be your wedding ring ;) )

Then research and find the most suitable system. Do it very carefully, focus on deep research of all of the applications available and included in the package, how much you will pay to increase basic limits [Pay attention to limitations per user]. 

CRM is like a marriage, in case you would like to upgrade or shift, you will face all the hurdles one can imagine, later stages migration will be similar to M&A.

Find out what will be the importing file structure (size and shape of the wedding ring) and see what would be the easiest way to convert the date per new importing requirements. Be very careful with automatic “one-click” migration. It can create chaos and break the new structure that you have been carefully setting up in your new CRM (I would advise doing migration manually, module by module). It can add old values and fields from the old system.

Avoid saving money on user accounts, do not share an account between the employees. The fewer accounts your team have, the longer and painful the migration will be.

• Training and HR policies

Everyone should understand what kind of data is available, what functionality will be available, how to access and use it. It requires training. Altogether your team should identify how to best use it to support and enhance current workflows. That kind of training requires investment. HR should analyse the characteristics of successful and unsuccessful candidates for new leadership roles and handpick the leadership team. Leaders should have a reward system, they should be prepared to navigate and lead in both systems, new and the old one. It will be great to have a People Business Partner role that will help to form an effective relationship between employees at all levels, guide and support teams. Talent should be happy to think “what else we can improve”.

Data security and democracy

Data democracy requires investment and stands on a cultural shift. Think about how it applies to your enterprise. Before you give access to information make sure it will not leak or will be available for sharing. Invest heavily in setting up a solid data security levels, a cornerstone of your company’s heritage.

Working in two systems simultaneously

It can be challenging for everyone to test new systems, improve it on the go whilst keep relying on old workflows and systems. Showing migration plan with milestones can help people to see the light at the end of the tunnel. Migration might be relatively expensive, be prepared to allocate a budget. Do fresh research on new trends in management phycology. I am planning to cover this topic in a while as well.

Get a coach/consultant

A consultant will be a key person, he will help you identify the most suitable system and guide you through all functionality avenues until you set up your R&D department.

PS. Don’t be scared, practice does not make you perfect, but it definitely makes you better. Be humble and human; maintain green morale status.