Wednesday 9 November 2016

The 5 Common ERP Mistakes and How to Avoid Making Them

Enterprise resource planning, or ERP, is business management software that challenges even the brightest and most experienced IT department members. What’s the reason it is so hard? The software is designed for in-house use and does not pose a direct profit to a company for one.

Though, a solid ERP stands to improve colleagues’ working experience from c-level executives down to the ground floor employees. It takes superior project management, exploration, communication, and technology skills to transform a time-consuming and complex project into a successful endeavour.



Avoid costly and career-busting mistakes and pitfalls that make such software development the backdrop to IT nightmares across companies. For any IT professional in charge of building an enterprise resource planning system, they know that the systems run from a few hundred thousand dollars to millions of dollars.

Beyond that, they are time-intensive to implement. Yes, a well-designed and smoothly executed ERP streamlines work, while increasing efficiency and cutting costs. The bigger risk is ending up with a shoddy design or a poorly rolled out ERP that costs the organization more money than planned. It can also cost IT people their jobs.

Learn from fellow IT professionals who have been at the helm for successes and near-failures. The most common problems and solutions are outlined below.
Topping the list is a problem that plagues even the most experienced IT manager. Always vet out new vendors by checking their references especially when using a new ERP vendor. Many managers trust that because someone is listed as a reference they must be trustworthy and reliable vendor.

The marketing materials may be glossy and make promises. Unless the vendor can deliver, those sales brochures and proposals are a waste. Always contact at least three of the new vendor’s references within your industry. Skip them if they do not have the requisite three contacts to vouch for their work.

When calling them, check on restrictions that the ERP presents to functionality and capabilities. In addition, make sure the new system will work within the confines of the company’s existing infrastructure, and is compatible with the company’s internal culture and way of doing business.

The next step is to decommission legacy applications. It is expensive and unnecessary to have the old applications still operational. It creates a wasteland that is costly between the human resources and money needed to conduct upgrades and maintenance. When the roll-out is about to happen, decommission the old.

Another way to avoid huge problems is probably at the top of mind for most IT people: having a suitable testing environment. Do not just go with a few test users. Instead, insist on having an active testing load to make sure the system can accommodate multiple users simultaneously. When testing Microsoft Dynamics AX, this is imperative.

Go into the new ERP with a plan. Always have a built-in maintenance strategy. Without it, minor problems might evolve into major systemic problems that plague users. Have a plan of action to tackle preventive maintenance. This honours the work of colleagues who took the time to develop an ERP. Maintenance ensures efficiency and continued business operations even when the minor glitch appears. says, it is important to “keep the kernel up-to-date, with the right legal changes applied to prevent potential problems,” and with improvements in installation technology, customers now experience only limited disruption when implementing support packs.

The next tip may seem obvious these days for other areas of IT. While the ERP vendor probably offers maintenance and support, there are alternatives to the premium paid for such services. Many third-party providers exist that can offer the same level of support for a fraction of the cost.

Can you afford to skip looking at alternatives? Such third-party providers can save up to 50 percent on support. Take the time to look at many options for such support. It will have a profound impact on the cost of ownership on an ERP.

The overall idea is to make the new ERP a success. Start out by contracting with the most experienced and highly touted vendor within your industry. Talk to prior clients to verify the vendor’s claims. Meet the company’s existing enterprise cultural and workflow needs while improving efficiency with a new ERP. Provide the most cost-efficient and effective maintenance options while ensuring maintenance is performed.

No comments:

Post a Comment