ERP Onboarding: The Worst Mistakes You Can Make During Implementation

An ERP system can bring many business benefits to your company. To do so, however, it must first be implemented correctly. Many entrepreneurs encounter problems caused by repeating well-known ERP onboarding mistakes. Learn what those mistakes are and how to avoid them.    

Which mistakes can be made when implementing ERP software?

 

1. Imprecisely defined objectives and requirements

The costliest and most painful ERP onboarding mistakes are connected with an improper approach to defining objectives and requirements. Many companies treat this too superficially and do not specify the outcomes they want to achieve. Incomplete, poorly considered requirements and failure to determine how ERP will affect current processes and work can create uncertainty among employees and the people implementing the system. At this stage, decide on key functions such as IoT integration and ERP cloud migration. Without a specific objective and indicators that measure its achievement, you cannot determine whether, or to what extent, ERP onboarding succeeded.  

2. No properly prepared plan

An ERP system is not a small application that merely needs installing. It can revolutionize company operations and requires thorough preparation. Many organizations forget this, producing misunderstandings because they do not understand current processes or know how to develop them to maximize the system’s business benefits.  

3. Improperly prepared data

Data is crucial to every enterprise, including those implementing ERP. Before migration, it must be properly prepared, including cleaning and sorting. Companies often fail to devote enough time and effort to this work, allowing valuable information to be damaged or lost. This creates serious problems during implementation and every subsequent update.  

4. Inadequate testing

Poor testing is a recurring problem for companies adopting ERP. Pressure to implement quickly causes this step to be omitted or underestimated, potentially leading to costly problems or complete implementation failure. Some companies forget testing entirely; others test with too few representative users. Such tests do not reflect real conditions and cannot show how the system will behave when used throughout the company.  

5. Communication problems

Business transformation requires effective change management involving people, technology, and processes. Proper ERP onboarding therefore requires appropriate communication with the team that will use the solution. What appears obvious to people directly involved in implementation may not be obvious to employees who must start using it. Failure to explain why the company is adopting ERP, communicate properly, and understand the needs of representatives across the business may cause employee dissatisfaction and reduce team efficiency.  

6. No implementation team

Every ERP implementation requires a well-organized implementation team containing representatives of all organizational departments. Daily duties often need to be reassigned so that migration and project implementation receive priority. Without such a team, implementation may take longer than necessary and fail to meet all business assumptions.  

7. Little or no involvement from business users and department managers

Businesses are often insufficiently aware of the importance of effective ERP implementation and devote too little attention to it. Subject-matter experts are occupied with daily duties and lack time for ERP onboarding. As a result, they are unable to give the implementation team appropriate assistance or explain individual business processes, causing major delays and higher expenditure, including the cost of external consultants.    

ERP onboarding—practical implementation advice

  Having described the most important ERP implementation mistakes, here are ten recommendations for this demanding process.  

1. Prepare clearly defined objectives, requirements, and KPIs.
2. Plan every implementation stage carefully.
3. Prepare data properly for migration.
4. Appoint a team responsible for ERP implementation.
5. Engage managers from every company department and business users.
6. Ensure a good flow of communication and make sure every employee understands the purpose of ERP implementation.
7. Prepare an appropriate test environment.
8. Provide employees with support and training.
9. Select the solution that best fits company needs in order to maximize ERP benefits.
10. Select suitable project-management tools.

   

Choosing an ERP system—can this be where problems begin?

  To obtain maximum benefit from ERP, the decision to implement it must be carefully considered and analyzed. Choosing a vendor too hastily is a common mistake. Over time, the system may prove unsuitable for the enterprise and fail to produce the expected results. The market contains many ERP vendors, so thorough analysis and comparison are strongly recommended to avoid serious mistakes.    

Who should be responsible for implementing ERP software?

  Whether you work in manufacturing, pharmaceuticals, or any other sector, an ERP implementation should primarily be the responsibility of a project team established by the company. It monitors and manages the workflow, planning, key KPIs, objectives, requirements, budget, and deadlines.   The team should include representatives of every organizational department. It is also worth appointing or engaging the following roles:

1. Project Manager —the person overseeing the project, responsible for achieving objectives and monitoring deadlines and budget.
2. Management Board—management must participate in key decisions, define principal requirements, and support the whole project team if implementation is to produce the expected results.
3. Department representatives —the end users who help introduce ERP throughout the organization. Their leadership and communication skills are essential to helping colleagues understand the entirely new system they will use.

 

1. Delivery team—technical and business experts responsible for carrying out the ERP implementation and ensuring that all business processes are reflected in it.
2. Implementation partner —an experienced expert who understands the entire ERP implementation process and can solve even highly complex problems. This partner provides personalized instructions, coaching, and guidance. For an off-the-shelf ERP, a representative of the system vendor can fill this role.

   

Who is responsible for implementation mistakes and ERP system defects?

  Responsibility for individual aspects depends on the ERP solution selected. If the company purchases an off-the-shelf system, the project team is responsible for implementation mistakes, while the vendor should be responsible for defects in the software itself.    

Summary

  ERP onboarding is a critical company-wide process that requires careful preparation and consideration. Professional planning, smooth communication, project-team engagement, and selection of a proven ERP vendor are the key factors that help avoid serious implementation mistakes and maximize the solution’s benefits.