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03 February, 2016

Challenge and Mistakes in ERP Implementation

 7 Common Challenges Faced in ERP Implementation :
It is very important, that implementation is done in stages. Trying to implement everything at once will lead to a lot of confusion and chaos.
  1. Appropriate training is very essential during and after the implementation. The staff should be comfortable in using the application or else, it will backfire, with redundant work and functional inefficiencies.
  2. Lack of proper analysis of requirements will lead to non-availability of certain essential functionalities. This might affect the operations in the long run and reduce the productivity and profitability.
  3. Lack of Support from Senior Management will lead to unnecessary frustrations in work place. Also, it will cause delay in operations and ineffective decisions. So, it is essential to ensure that the Senior Management supports the transformation.
  4. Compatibility Issues with ERP Modules lead to issues in integration of modules. Companies associate different vendors to implement different ERP modules, based on their competency. It is very essential that there is a way to handle compatibility issues.
  5. Cost Overheads will result, if requirements are not properly discussed and decided during the planning phase. So, before execution, a detailed plan with a complete breakdown of requirements should be worked out.
  6. Investment in Infrastructure is very essential. ERP applications modules will require good processing speed and adequate storage. Not allocating suitable budget for infrastructure will result in reduced application speed and other software issues. Hardware and Software Security is also equally important.
13 Common ERP Mistakes and How to Avoid Making Them
  1. RP Mistake #1: Poor planning 
  2.  ERP Mistake #2: Not properly vetting ERP vendors.
  3. ERP Mistake #3: Not understanding or using key features.
  4. ERP Mistake #4: Underestimating the time and resources required.
  5. ERP Mistake #5: Not having the right people on the team from the start
  6.  ERP Mistake #6: Not setting priorities
  7.  ERP Mistake #7: Not investing in training and change management. 
  8.  ERP Mistake #8: Underestimating the importance of accurate data
  9.  ERP Mistake #9: Taking the kitchen sink approach.
  10.  ERP Mistake #10: Not decommissioning legacy applications.
  11. ERP Mistake #11: Not having an active load testing environment
  12. ERP Mistake #12: Ignoring third-party support alternatives 
  13.  ERP Mistake #13: Not having a maintenance strategy.