The enterprise resource planning (ERP) software industry has experienced tremendous growth in recent years, with the market size valued at $148.37 billion globally as of 2021. That figure will grow to an impressive $202.28 billion by 2025.
There’s a good reason businesses are increasing their investment in ERP systems. The best ERP solution can make enterprise planning a breeze and make you more competitive. It can dramatically enhance communication between company departments that were previously disjointed.
But for an ERP system to work, you have to implement it properly. Too often, small businesses lose tens of thousands of dollars invested in ERP solutions that were incorrectly implemented.
In this blog, we point out some of the top ERP implementation mistakes you need to avoid.
Not Having a Plan
Smart management of any business entails always having a plan. Note that ERP implementation is a huge project that will affect all departments in your company. For this reason, you need to do sufficient planning upfront so you avoid confusion down the road.
Take the time to clearly define your goals for implementing ERP software. Think of how best to implement the system and what your priorities are. Which departments will you start with?
With a solid plan, you ensure that you get the best ERP software for your specific needs. It also makes it easier to fend off impending distractions and keeps all team members on the same page throughout the implementation process.
Being Casual About Your Choice of Vendor
Another common mistake businesses make when investing in ERP software is to think that all vendors are equal. Any salesperson can give you a dazzling pitch, but don’t make your decision based on what they say only. The last thing you want is to invest in ERP software only to get surprised by its lack of functionalities and capabilities once you install it.
Some salespeople will oversell the speed with which their ERP software can be implemented. If a vendor tells you that their ERP solution can be up and running within a week or two, it’s very likely they’re lying. Even the best ERP system will take months for full implementation.
To get a trustworthy vendor, ask for references from them. The best ERP vendors will usually have references they can provide you with to ascertain the suitability of their system for a company in your sector.
Not Training Employees
As we mentioned before, ERP software affects multiple departments of your business. Good business management calls for you to empower employees to feel part of your business, including when implementing change. Offering ample training to everyone who’ll be affected by the ERP solution is a good way to empower them to use the software.
Without proper training, you’ll find that many employees aren’t comfortable embracing the change. Some will even start to revert to old processes after you’ve implemented the changes.
Invest in the Best ERP Solution for Your Company
The best ERP solution for your business has the potential to take your company to the next level. To get the most out of this software, it’s imperative to avoid common ERP implementation mistakes, especially those pertaining to planning, choice of vendor, and employee training.
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