Do's and Don’ts of ERP Implementation
The market is flooded with ERP solution providers and finding one is not the problem; although finding the appropriate one for your organization could be one. Furthermore, proper implementation is a challenge which most of the organizations face with ERP solutions. Every ERP provider has a different opinion on the checklist for ERP implementation but they don’t always consider the complexities of each organization's requirement which can lead to a complete failure of the entire system & process. One of the biggest examples of the failure was the ERP implementation of SAP by Hershey’s (A Renowned Chocolate Manufacturer of USA) which was later on abandoned after 3 years.
Therefore, it is always advisable to follow a list of various “Do's” and “Don't” to ensure the success of ERP implementation. Some of the critical do’s & don'ts to consider are listed below:
Do’s
- Train your employees: This is something almost every ERP provider will suggest you as lack of knowledge and training will lead to abandonment by employees leading to its failure. Therefore it is important for the management to make sure they understand all the modules they will be using and the modules and functions used by other departments as well. This will help them when collaboration and teamwork are needed.
- Ask for a Demo: Probably the first thing you would want to do after short-listing ERP providers. Understand all the aspects of different providers such as features, modules, support, user interface, app integration, etc and make a checklist of all of the above. This will help you compare and choose the best one out of the shortlisted vendors
- Research Extensively: Once you have decided which software to implement, spend time to research a little about the company and their product. Although time-consuming, it will help you evaluate their success rate, challenges other people face with their system, how good is their support team, etc. The last thing you want is to be surprised when issues arise after implementing the system.
- Establish Key Performance Indicators: It is important to identify and define KPI’s to act as benchmarks during ERP implementation. It will allow you to identify any issues or roadblocks that arise during the process. Have your baselines, regular check-ins, and targets identified to stay 10 steps ahead of the game. Make sure you have set aside enough time for transfer of data as it will take some time.
Dont’s
- Be Cheap: It is not advisable to opt for the cheapest solution in the market if it does not suit your requirement. Choose an ERP that will satisfy all your requirement to ensure the success of ERP implementation which will benefit the organization in the longer run. It is often seen that cheaper systems have frequent bug issues, poor support and are not user-friendly which are very important for its success.
- Have Unrealistic expectations: An ERP system will not start showing results from day 1. This is one issue experienced by a lot of organizations that expect immediate improvement after ERP implementation. Give it some time and keep a note of the progress step by step. It is also possible that the reports generated by the system are not identical to the ones users are accustomed to which may cause frustration.
- Neglect updates: Maintaining your organizations ERP is as important as maintaining your car. Consider the case of mobile Apps where companies keep updating the software and introducing new features. It is important to be updated about the new features, bug fixes, UI/UX changes, etc. Same is the case with an ERP system. Organizations need to maintain the ERP system in order to make the best use of the product. If an update has value for the organization but the users are unaware, it will be a loss of opportunity.
- Assume the conventional system is right for you: As mentioned in the “do’s” list, research about a company’s product before implementing it rather than purchasing that one being purchased by others as it may not be the right one for your needs.
- Being dazzled by features: This is one of the most common mistakes made by every one of us while purchasing an IT, Automobile or Consumer durable product. Although features are important, they aren’t everything. Organizations usually opt for an ERP with the longest feature list but instead, it should focus on industry success history, customization, flexibility & integration ability.
Keep the above-mentioned points in mind and you are for sure geared up for success in terms of ERP implementation for your organization.