Top 5 Mistakes while Implementing ERP
1. ERP Implementation requires thorough understanding of the system and the technological limitations which if not taken into account leads to ERP failure. Here, the ERP vendors need to have indepth knowledge of the technical features available in the ERP system and up to what extent you can customize the ERP system to adhere to the needs of the clients. Over commitment leads to high expectations to be set which if not met encourages negative thinking towards the system which in-turn ERP vendors have to take the hit for it.
2. While ERP implementation has various types of risks associated with it, incorrect selection of the ERP softwares and wrong tools & techniques for implementation is one of the disastrous mistakes done by the erp vendors. Different erp softwares are suited to different Implementation methodologies. For an erp product like Netsuite, it cannot be implemented through an Agile methodology , it has to go through a proper waterfall model for correct implementation.
3. ERP Providers nowadays have to be quite proactive on the solution they want to implement as the clients are smart enough to have done a pre-analysis on different ERP tools and selecting a particular ERP solution .Scope definition is one of the key problems which causes erp failure , if the scope is not defined properly it may cause to serious problems in the later stages of implementation which leads to increase in delivery time and thereby increasing the cost and exceeding the budget of the project
4. Underestimating or emphasizing less importance on the implementation methodology is one of the costliest mistakes committed by erp companies as ERP systems are too bound by process driven flows and mechanisms. Companies have to stick to an implementation methodology for specific erp softwares or create different implementation models for successful implementation of the project with minimal escalations
5. Lack of process planning is also one of the most common mistakes committed by ERP vendors since it always needs to have a pre-calculated approach towards a project before even doing the kick-off.ERP softwares are systems with their own limitations and hence a process too should be designed in such a way to cover up for the limitations or allocate more time towards working on it