Johannesburg, 18 Oct 2011
Implementing a successful ERP system shouldn't be a challenge, as long as you're well-educated. When ERP systems fail, it is usually the result of completely avoidable mistakes. These mistakes are typically ones you don't have to make if you follow some very simple advice, says Keith Fenner, vice-president - sales, Softline Accpac, part of the Sage Group.
Your business doesn't have to become an unfortunate ERP statistic. When you know what you are doing, you're almost guaranteed to succeed. Preparation and knowledge are key to understanding how you can avoid these common ERP mistakes that all too often lead to project failure.
Transfer of ownership
Regardless of how many people are included to help from the ERP vendor or an implementation partner, it still requires a major commitment from the customer. The customer needs to buy into the new system from the beginning, and assist with gaining support from the employees. They are vital as they know the processes and institutional history that makes the organisation successful.
The greater role employees play in the implementation, the higher the likelihood of a successful implementation. This ensures that undocumented knowledge is covered and provides a greater buy-in from the organisation. The kiss of death for a system is if the organisation rejects the changes that the system requires. Conquering cultural issues is mandatory for a successful implementation.
Trying to cut corners
It is only human to want to find the least expensive way of completing any project, including an ERP implementation. But there are some things you just should not skimp on, and this is one of them.
Every part of an ERP implementation project has separate and important value, meaning that no part can be eliminated or skipped without affecting the entire project. While it may be tempting to cut back on maintenance costs or training, doing so is sure to be harmful.
In the end, you will be much better off paying the costs upfront and avoiding future problems than you will be dealing with a very expensive ERP failure. Remember, these costs are an investment in your future. If you handle them correctly, they will pay off handsomely when the system proves to be a huge success.
Delaying or eliminating training
Training is one of the most important parts of any ERP implementation project. Think about it this way - you wouldn't send a bunch of American men out to play in a cricket match, would you? They wouldn't understand what was happening, they would be unable to participate to the best of their potential, and they would no doubt end up getting very frustrated.
ERP is the same. You need to make sure that your employees are properly prepared to participate in the “cricket match” that is ERP - since, for many employees, it will feel just as confusing at first.
Proper training is the best way to reduce employee resistance to change and ensure that every single worker in your operation is ready - even excited - for the go-live. Having employees who are eagerly anticipating the benefits of ERP is one of the best ways to ensure ERP success. After all, employees are the system's end-users in most cases - their attitudes can decide its success or failure.
Rushing
Most ERP projects take more than a year to complete - 18 months on average, which excludes the sales cycle, which could take as long as three years.
Thinking that an ERP implementation is fast and effortless is a major mistake, which many companies make when embarking on their projects. If you want to reap the rewards, you have to be willing to put in the effort. While the software can be implemented in a matter of days, maybe even hours, getting it to work for your business is an entirely different matter. It is a long and involved process that requires intense dedication.
If you really want to succeed with ERP, you need to commit yourself and understand that the process may take a while, but it will be worth it when you are running a more efficient, profitable business thanks to enterprise resource planning.
ERP failure is 100% avoidable; just don't cut corners, avoid training and rushing the implementation.
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