An ERP Implementation is one of the most impactful projects your company will embark on. Your ERP system will be the core of your company's business processes. It will be used every day, in various ways, by multiple users to push your business to its full potential. Your ERP system will directly affect your company's success.
However, you may be aware that most ERP implementation projects fail to deliver all the hoped-for benefits. What causes so many
1) Failure to appoint a full-time project leader
Your ERP solution will touch most areas of your business. Therefore, implementation will be complex, involving stakeholders, management, and employees from many departments. Decisions made during the implementation will have far-reaching consequences. A full-time project leader is a necessity. The project leader must have the experience and authority to field questions and arbitrate decisions. A complex and time-consuming project can't be done in an employee's free time. And it can't be handled exclusively by an outside consultant with no organizational authority.
Without a full-time, in-house project leader reporting directly to the project oversight committee, your ERP implementation will not succeed.
2) Choosing the wrong software
There is no end to the choice of software applications. Some are designed specifically for particular industries. Others try to cover a range of different industries. And some try to cover so many industries that they don't fit any very well.
The best choice for small and midsized businesses in less mainstream industries – for instance, craft breweries – is
If you choose an ERP system designed for your industry, you'll know that the business processes reflect industry best practices. That means you can minimize the number of customizations you might require.
3) Neglecting to set goals
If you don't understand why you need a new ERP system and what you hope it can do for your business, you won't know if your project is successful. Take the time upfront to define your goals. See if you can express them in measurable ways. For instance, rather than saying you want faster order processing, reach for something measurable, such as reducing order cycle time to same day.
4) Allowing scope creep
Your project leader has to be authoritative enough to keep the project on course. Various departments may have wish lists of how they would like the ERP to function. However, adding all the possible bells and whistles can lead to extra processes and customizations. Before you know it, the whole project is out of hand. Sticking to your goals gives you a better chance of keeping within your planned budget and timeframe.
5) Inadequate training
Companies with limited resources may be tempted to cut corners when it comes to training. Training a few employees and asking them to train the others sounds like a good idea. But sadly, most employees will only retain about 25 percent of what they learn after a few weeks. Without proper training, your team will not know the full capabilities of your new ERP solution, and you will not achieve the expected return on your investment.
6) Viewing ERP implementation as an IT project
It's true that ERP software runs on your computers, but that doesn't mean it's an IT project. You can't rely on your IT department to make the project successful. That's up to our project leader and those employees who will use the system daily.
7) Lack of management buy-in
If many of these points of failure sound like they stem from a lack of management commitment, they do. Without management commitment, the project cannot be successful. Make the project a priority. Be involved. Ensure everyone is onboard, enthusiastic, optimistic, and realistic. Stick to your vision and your goals.
8) Why choose Vicinity Software
ERP implementation can be the greatest asset for your company, or it can be an expensive disaster. Ensure success by avoiding the pitfalls and engaging a partner with the expertise and experience to help you reach your goals. Vicinity Software partners with expert ERP implementation companies to deliver a full solution for your chemical, food and brewery software needs.
By Vicinity Software,