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5 Most Common ERP Mistakes

November 24, 2022

What are the most common ERP mistakes? 

  1. Providing the Company with an Unrealistic Timeline
  2. Skipping A Test Run for the New ERP Solution
  3. Not Providing the Proper Training to Employees
  4. Not Doing Their Research for Various ERP Solutions
  5. Not Understanding the Differences Between On-Premise & Cloud-Based Solutions

Enterprise Resource Planning (ERP) solutions provide various industries with platforms to manage and integrate different business processes into one system. These include accounting, inventory management, human resources, and marketing. 

However, even with this solution in place, many companies still encounter obstacles when using the software. This article enumerates the common ERP mistakes that businesses may be committing. Keep reading to learn more!

Providing the Company with an Unrealistic Timeline

Providing the Company with an Unrealistic Timeline

Installing an ERP has its advantages since its primary purpose is to centralize almost all business processes. However, the biggest mistake a company may make is setting an unrealistic timeline for its implementation. 

In the workplace, applying changes to various processes may encounter many problems. It can take employees time to grasp the software. They may also need time to adjust to new methods of work. 

When implementing your new ERP, never expect the timeline to be short. Instead, adopt a flexible schedule where the entire team can test out the system and adjust to using it daily. It’s better to provide your employees with more realistic expectations instead of expecting everyone to get it immediately. 

Skipping A Test Run for the New ERP Solution

Even if the  ERP is set up and ready to use, it’s not ideal to run the program immediately for all employees to use. 

Just like any new product and service, it’s important to test your new ERP system once it is set up. 

This testing phase is important for two reasons. First, it’ll help you see if the system works great with your workflows. Second, it’ll help you find any errors, glitches, or obstacles in the system. 

Have your team test it out for a few weeks, and take note of any problems you encounter. 

From there a small team, you can continue to add teams to the testing period. The ERP system may operate differently when more users are on board. That’s why it’s vital to incorporate this into your system. Before launching it to the entire company, conduct a real-life load to see if the ERP system can accommodate all users and processes. 

Not Providing the Proper Training to Employees

Providing the Company with an Unrealistic Timeline

An ERP software can only be successfully installed if the process and the software are grasped by its users. That’s why deciding to skip training for the system is a grave mistake. There is always a learning curve when implementing change, more so if technology is involved. An IT solution can only streamline and revolutionize business processes if its end users understand its various functions. 

Make it a point to provide your entire workforce with proper training and change management. This is an avenue for your company to support its employees. With all of them fully understanding the system, it can also boost your return on investment in the software. 

Having No Maintenance Plan for the Solution

Even with an excellent ERP system installed, hiccups and obstacles are obsolete. The thing about software is that it also needs to be maintained and updated to make sure its functions are at optimal levels. 

With your service provider, you can ask for their assistance in how you can best maintain and improve your ERP system even after implementation. They may also provide services to help you optimize its functions over time as you grow.

As your company learns how to work with it, you can also build a team to manage the different management and security issues. This allows you to keep track of and improve on various functions of your software. 

Not Doing Their Research for Various ERP Solutions

Before implementation, a grave mistake that companies can make is picking the wrong software from their industry. There may be different ERP solutions that are best for different establishments. That’s why it pays off to research the different options you have. 

There may be other solutions that feature more industry-specific software and customization features that you may need. Find the ERP solution that best suits your company as a whole. 

Not Understanding the Differences Between On-Premise & Cloud-Based Solutions

Aside from looking for industry-specific solutions, you must look into the two important times of ERP solutions: on-premise and cloud-based solutions. Take time to understand the advantages and disadvantages of each kind. 

Many companies turn to cloud-based solutions since it does not rely on internal hardware and resources. Instead, it stores its data in a virtual data center that is constantly updated by its service provider. 

Key Takeaway

Those were the common ERP mistakes that companies may make before, during, and after the installation of their business solution. Now that you know about this, you can analyze the different processes you have to see if these mistakes may be happening in your company.

Need more help with your ERP implementation? Or, do you want to learn more about ERP software? Contact us here at DynamIQ today! We are an IQ consultancy firm in the Philippines, and we offer the best cloud-based ERP solution — SAP Business One!

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