The eBook recently published by Strategic Systems Group (SSG) is an FAQ resource. It provides in-depth answers to “12 Frequently Asked Questions about Enterprise Resource Planning Systems” for manufacturers. Chapter 5 focuses on the common issues that may arise and disrupt an ERP software implementation:
Successful ERP Implementations Avoid these 8 Common Pitfalls
The variety of issues that could arise is pretty broad. They range from data migration problems to overlooked “shadow” business processes to user adoption. If these can be identified and planned for in the analysis stage, the implementation will go much more smoothly.
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We’ve identified 8 of these challenges and in each section, we discuss what to watch out for and how planning ahead provides an ounce of prevention that’s worth more than a pound of cure!
1-The Scope of the Project Changes Significantly
This is also known as “scope creep.” It frequently occurs when customers realize the full potential of the new software and suddenly want more than they originally included in their Scope of Work (SOW). You can avoid
this pitfall by “putting a fence around the project” and sticking to it. You can always add more functionality in Phase 2.
2-The Cost and Timing Estimates Were Too Optimistic
It’s up to the project and executive teams to ask “Can we fit this item in our original budget?” And then make the tough decisions that will impact cost and timing.
3-The Impact on Internal Personnel Was Larger than Expected
Internal resources, especially subject matter experts (SMEs) need to be freed up to work on the new implementation. This can and should be planned for ahead of time. But there is always the unexpected, such as staff turnover, that could impact the timely completion of the project.
4-Unforeseen Gaps between Business Processes and System Functionality
When attempting to port over business processes from a prior ERP system to a new one, you will frequently find that the new system allows for greater optimization of business processes. While this is actually a benefit, it can also mean taking time out to re-evaluate your processes before moving ahead.
5-Inadequate Processes to Manage Change within the Organization
Change management is one of the biggest challenges that arise during an implementation. In general, how well the organization manages change is a critical success factor in such projects.
6- Biting Off More than the Organization Can Handle
Biting off more than the organization can handle, in this context, refers to “over-implementation” or overreaching during an implementation. In general, the way to avoid this is to take on an initial phase, get that squared away, and then move on to a Phase 2.
7-Incomplete or Incorrect Data Migration
It is critical to complete the data migration up to specification and on time so it can be properly tested before it causes system failure.
8-Including Accounting at the End of the Implementation
No one really understands the calculations of purchasing and manufacturing variances except for Accounting. So be sure to include the finance team at the beginning of the implementation process instead of waiting until the end, only to find out that it’s not properly set up.
To learn more about avoiding the pitfalls on the road to success…
Download a complimentary copy of our eBook now .