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AVOID THESE TYPICAL ERP IMPLEMENTATION ERRORS

There is no denying the significance of Enterprise Resource Planning, commonly called ERP in corporate work scene.

An ERP system enables a company to gather relevant data about the customers along with processes inside the organization – be it for payroll, financial accounting, production planning, materials management, or more.

This is like an exhaustive system which includes all the information generated by a company, and that can be used for making viable decisions.

However, it is important that company pick the right ERP system and implements it properly.

To implement ERP efficiently, it is crucial to be aware of commonplace ERP implementation errors made by organizations.

Top ERP implementation loopholes a company should evade

1.     Not analyzing the system

It is wrong to assume ERPs are useful only for MNCs and big corporations. Mid-sized companies also deploy ERP successfully, and examples are numerous.

However, it is a mistake not to analyze existing system before deployment of ERP. It is important to analyze how the ERP implementation will impact existing systems beforehand.

2. Inadequate/improper planning

Implementing anything in the organization without proper planning can lead to adverse results and same is true about the deployment of an ERP system.

Implementing ERP cannot be done overnight as it involves numerous steps as well as procedures.

Hurrying up and lack of planning affects the deployment, and eventually, it may lead to loss of money, hampering workflow and resource loss.

3. Lack of coordination between departments

In many instances, problems in ERP implementation arises from lack of coordination between different departments in the same company.

If the employees in all departments of the organization do not understand the importance of an ERP system and have a vague idea about its usage, conflict can arise.

ERP deployment affects workflow organization wise and syncing between all departments is a must.

4. Not selecting apt workforce for ERP deployment

It is imperative for the company management to pick the efficient and serious-minded staffs for deployment of ERP in the company.

ERP implementation is a lengthy and exhaustive process involving numerous steps and professional minded, skilled staffs can do justice to such tasks.

Choosing people from workforce based on easy availability can be a big mistake in this regard.

5. Excluding end users in decision making

Several companies make the mistake of getting approval for ERP deployment from the management level executives without involving end users.

It is necessary to involve those in the workforce who would be handling the system post the implementation.

Those belonging to departments like finance, logistics and IT should be involved in final decision making. This also reduces the risk of one section getting blamed for making wrong choices.

6. Not choosing right type of ERP

Not all ERP systems are the same. Before selecting an ERP, its viability and feasibility should be analyzed. Before choosing a cloud-based ERP system, existing internet and IT setup has to be analyzed well.

However, in some companies, the setup is more suited for on-premise ERP deployment. The software-as-a-service type ERPs are also becoming popular.

7. Choosing ERP by feature

There are plenty of ERP systems available and some of them come with an extensive feature list.

However, it needs to be seen if those extra features are useful for a specific company or not. The workflow and setup of the company should be adaptable to the ERP.

Where Does this lead to?

It is quite evident that deploying an ERP setup in any company is no cake walk. Proper planning is the prerequisite for successful implementation of ERP systems in any company.

Lack of coordination between workforce and getting things done in a hurry can cost the organization later in many ways. Hence, it is vital to have effective ERP solutions in place.

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