Common risk factors that can sink your ERP implementation (& how to avoid)
by Adam Warden on
Many pieces must come together to ensure a successful ERP project. Think of your implementation as a jigsaw puzzle (just with larger, more complex pieces). From managing resources internally and externally, to ensuring goals are set and measured correctly, as well as preparing important business data, the list goes on.
Due to the large efforts involved, it’s not uncommon for businesses to run into several hurdles along the way. In fact, statistics show that 60% of ERP projects fail the first time around.
But fear not. Whilst several risk factors can sink your ERP implementation, there are ways to stay clear of them and ensure a return on your investment.
1. Insufficient support and training of end-users
Of course, you want to get the technology components of your project right. You’ll analyse technical features, test the user experience, and explore integrations to make sure everything is as expected.
However, it’s also important to allocate just as much time to supporting and training end users.
When you implement enterprise-wide software, you’re directly impacting the way your employees conduct their day-to-day jobs. As an employee, being allocated the time and support to learn the ins and outs of a new system should be a given.
So, by prioritising change management, you can ensure that time, money, and resource is dedicated to helping your entire workforce make a successful transition.
2. Failure to define goals
Having aims and ideas for what you want from your new ERP system is good, but failing to turn these into actionable goals is a huge mistake you cannot afford to make.
Without defining key objectives, it’s hard to analyse how and what your new system has helped your business achieve. Before your implementation takes place, you should take time to plan, create a strategy and define your ERP goals. This way, you’ll have a set of key performance indicators (KPIs) that will give insight into real successes.
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3. Poor data quality
One of the biggest mistakes you can make during an ERP implementation is transferring incomplete or inaccurate records from a legacy system into your new platform. So, remember this: “An ERP system is only as functional as the data you put into it.”
Your implementation will involve migrating data from multiple departments across the organisation. To avoid the chance of unclean data breaching your new system, be sure to allocate plenty of time to your data migration, and then testing. This will guarantee that all records are thoroughly examined before entering the system.
4. Selecting the wrong ERP software
As you evaluate ERP software, you’ll discover that there are endless solutions on the market. Rushing to select an ERP system too early could result in a platform that doesn’t fulfil your requirements or scale alongside your business.
It’s important to identify existing pain points to begin with. Your requirements can then be based on solving these pain points, which will help you define both short and long-term business goals. Once complete, you’ll have a clearer view of the requirements that should be prioritised when evaluating ERP systems.
Looking for a software partner to drive ERP success?
At Nolan Business Solutions, we’re committed to providing long-term ERP solutions tailored to your business needs. We’re the experts in providing NetSuite and Microsoft Dynamics solutions that help businesses like yours seeking growth.
Our team of accredited ERP experts will develop, deploy, and support your implementation from beginning to end, and after. So, if you’re looking to start your ERP implementation journey, we’d love to support you. Contact our team today for more information.
