Modernization and digital transformation have gotten easier because of cloud ERP. Rolling out a new ERP solution was once a long, costly, and complex process. But now it is relatively simple and cost-effective thanks to cloud ERP. That does not mean your business is free from potential cloud ERP implementation roadblocks, however.
Any company-wide systems project comes with potential pain points. The good news is that you can avoid the most common cloud ERP implementation roadblocks with a few key decisions.
Project Management Roadblocks
The biggest mistake that growing, mid-market businesses make when it comes to cloud ERP rollout is underestimating project complexity. Even though cloud ERP has greatly simplified implementation, a company-wide systems overhaul still is a big project.
So, common cloud ERP implementation roadblocks related to project management include underestimating implementation complexity, failing to accurately assess budgetary needs, and starving implementation of the needed resources for success.
There are a few key decisions that can help a mid-market business avoid these project management roadblocks. The most important is giving the project strong executive sponsorship so it is a business transformation project, not an IT project. Strong executive sponsorship also ensures that adequate budgetary and internal resources will be allocated to the project.
Equally important is starting with business process clarity and developing a clear implementation plan before rollout. Your business should have all workflows and processes fully documented before implementation, and a clear picture of how the system will perform before rollout so there is no project creep later on.
Due to the scope of a cloud ERP rollout, we also advise that your business consider a phased implementation that rolls out functionality over time instead of a “big bang” release where everything is ready from Day 1. This helps cut down on complexity and stretch your deployment team.
Workflow and Process Roadblocks
Mid-market businesses also frequently encounter cloud ERP implementation roadblocks related to process change. These process roadblocks take two forms.
First, there are process conflicts between how ERP natively handles key processes and how mid-market businesses have organically evolved their processes over the years. There’s frequently a push to adapt the ERP system to the bespoke processes within the business instead of adapting the business to the industry best-practice ways of doing things that are the default within the ERP system. This tension can greatly slow down cloud ERP adoption.
Over-customization is a second way that process can create roadblocks. A push for customizing the cloud ERP system so it mirrors the workflows and processes a business had before the rollout is one of the most accurate indicators that there will be cost overruns and rollout delays.
The way to overcome these process roadblocks is through adoption of industry-standard best practices baked into the ERP instead of customization. Configure your system instead of customizing it in most cases, in order words. This will align your backend processes with industry standards, and both enable a faster ERP rollout and a greater focus on what actually differentiates your business. The unique way you handle payroll, for instance, is probably not what makes your business a success.
Data Roadblocks
Among cloud ERP implementation roadblocks, data migration is a consistent challenge. ERP serves as the central nerve center for your business, so all data from legacy systems must migrate to the new system. Third-party solutions also must integrate with your new cloud ERP, ensuring ongoing data integrity and coordination.
Messy data, complicated integrations, and overwhelm constitute the data roadblocks that a typical mid-market business faces during ERP implementation.
How to overcome these data roadblocks during ERP implementation starts with developing a data governance structure and thoroughly cleaning legacy data before migrating the data to your new cloud ERP. This is an absolutely critical step, and it constitutes a large portion of the typical cloud ERP rollout time.
Mid-market businesses also can overcome cloud ERP implementation data roadblocks by choosing an ERP platform that comes with a wide range of common integration scenarios out of the box, such as and its . Taking a phased implementation approach also helps, because it allows for an orderly migration in stages so not all data must move to the new ERP solution on Day 1.
Change Management Roadblocks
Not all cloud ERP implementation roadblocks occur during rollout. The most pernicious ERP implementation roadblock takes place after go-live when employees start using the system. If there isn’t adequate buy-in, employees sometimes resist new company processes that come with the ERP rollout and revert to spreadsheets and shadow IT.
Even the best software is only useful if employees use it. User adoption isn’t usually an ERP software problem; it is a change management issue.
Overcoming this ERP implementation roadblock starts and ends with preparing employees for the new system before and during rollout.
Early in the ERP implementation project, executives and key stakeholders in each department should begin championing the ERP solution and communicating how it will improve the lives of employees and the company overall. Getting departmental feedback during the planning process also helps with designing the system for the actual needs of employees.
During rollout, your business also can’t shortchange onboarding and training. Manuals and training programs should document the new workflows and show employees how to use the new system, and this training should be an ongoing program instead of a one-off during rollout.
Only with consistent messaging about the need for the changes and training on how to use the new system will your business avoid employee pushback and system adoption issues. So while configuring the system is obviously important, don’t shortchange the human component of cloud ERP rollout.
Read the Playbook for Effective Cloud ERP Rollout
For more than 20 years, we’ve been helping businesses roll out ERP on time and under budget as an and SAP Gold Partner. We know how to help you avoid the cloud ERP implementation roadblocks and get a new system that unlocks business growth.
Learn more about the ERP implementation journey by reading our or by calling one of our experienced consultants at (801) 642-0123. You can also write us at [email protected].