5 ERP Implementation Mistakes to Avoid

Whether you have started your ERP implementation or are trying to decide between ERP vendors, the implementation process can be time consuming and a bit stressful. However, your ERP implementation should result in an ERP solution that increases productivity, increases efficiencies and improves the bottom line — if implemented correctly.

To increase the likelihood that your implementation will be a success, here are five ERP implementation mistakes to avoid.

1) Do Not Take the Vendor’s Proposal at Face Value

Question everything. The ERP vendor’s sales team will present the product in the most positive way. This may include impressive software demonstrations, large pricing discounts, non-standard contract concessions, and promises that that the software can meet all of your needs and requirements. The vendor’s proposal should be examined closely for reality. You should ask to see the software demonstrated in a live environment. You should look at the overall project plan and ask in-depth questions about software solutions, deliverables, implementation timetables and functionality. Be wary of an ERP vendor that won’t answer your questions.

2) Do Not Evaluate Only One Vendor

You have many choices for an ERP solution. You should give yourself the benefit of researching, interviewing and evaluating more than ERP vendor, software solution or integrator. You should consider multiple vendors and allow them to compete for your business. Ideally you should negotiate contracts with more than one vendor — using the negotiation process to leverage competing ERP vendors against each other to obtain favorable terms and conditions.

3) Do Not Rush the Project or Cut Costs

Implementations are stressful. It’s natural to want to rush through certain phases of an implementation project or cut costs or resources to stay on time or on budget. However, rushing the project or cutting costs usually results in delays and higher costs over the lifetime of the implementation. An ERP system that is not tested, customized, and implemented properly will cost more money and take more time to use and adopt than an ERP system whose implementation was well thought out and had adequate resources devoted to it.

4) Do Not Fail to Secure Executive Buy-In and Support

Your ERP project will involve decisions that you cannot make on your own. Executive decisions will need to be taken to an executive level steering committee that is dedicated to supporting your ERP implementation. Decisions such as budgets, vendor issues, deadlines, functionality, and customization will all have a place for discussion within this committee. Failure to implement a steering committee and failure to involve executive level decisions makers increases the likelihood of an ERP failure.

5) Do Not Fail to Assemble a First-Rate Project Team

Your ERP implementation is only as good as your project team. You should hire a project manager with experience in your industry and experience implementing the particular ERP system you have selected. You should have “super users” who are highly trained and capable of training others. You will need to have all departments involved with the implementation process, each with team members to assist. Without a first-rate project team, your project will suffer from missed deadlines, missing functionality, inadequate training and ultimately a software solution that isn’t fully utilized — if successfully implemented at all.

By knowing these common mistakes to avoid, you increase the chances that your implementation will stay on track and be successful. If you have any issues or concerns about your ERP vendor or implementation, give us a call at (312) 876–6685.