Implementing an ERP system - whether in a small company or a large organization - is a significant challenge. It involves considering a vast number of variables and involving the right personnel who are knowledgeable about the internal processes. Therefore, it's important to prepare for this endeavor well in advance. By understanding the most frequently made mistakes during IT system implementations, we build awareness and minimize the risk when the time comes to implement an ERP in our company.
An ERP system (Enterprise Resource Planning) is, in brief, an IT solution designed to manage all aspects of a business's operations, aiming to optimize processes, automate them, and save time and money. Consequently, its implementation requires more involvement than simply launching a trial version, clicking through it, and transitioning to a paid version. That's a recipe for ongoing problems. Meanwhile, ERP is meant to solve issues, not create them. Education, selecting the right tools and implementation partner, discussing needs, initial concept, analysis, implementation, development, and post-implementation support – all of this is essential for a properly functioning ERP system. Understanding the most common mistakes during ERP implementations is valuable in avoiding them and ensuring a successful deployment.
Lack of proper ERP system research
The market offers numerous ERP solutions. Hence, before selecting a specific one, it's worthwhile to invest some time in gathering information about what a given system can do, what functionalities it offers, and whether it can handle critical processes for our company. This task should be carried out by all individuals involved in the project since different requirements will be present for IT representatives, those responsible for production or warehousing, and finance personnel. Not to mention the management, for whom the ability to swiftly and transparently analyze company data is vital. Conducting thorough research early on helps narrow down the choice both in terms of the IT tool and the implementation partner. Being aware of the capabilities of different systems enables us to know exactly what to discuss with the partner, what to pay special attention to, and how potential functional gaps can be addressed. As a result, we optimize the time spent on decisions and save money.
Lack of an iterative approach
A "blank slate" system tempts us to immediately set it up and populate it with data. This is a fairly common mistake. The process of implementing an ERP system like Dynamics 365 Business Central is comprehensive. ERP is like a network of interconnected vessels, which means that certain configurations might be suitable for one area but not for another. The way to reduce the need for repeatedly changing settings is through an iterative approach. This means starting with small components and gradually adjusting further parameters as the team becomes more familiar with the system and subsequent processes. This minimizes the risk of performing the same action multiple times, and as we know, time is money.
Lack of a defined plan and expectations
Setting realistic expectations and measurable goals is essential for a successful ERP implementation. It's important to know the project schedule and understand the tasks that need to be completed, their deadlines, and who is responsible for them. Each department involved in the organization should be aware of when they will be most needed in the ERP implementation process. Establishing and adhering to a well-defined schedule benefits everyone and can prevent delays or other issues.
Ignoring user opinions
One of the most challenging parts of the implementation process is working with system users. This often stems from the fact that users have established their own work methods and routines. Fear of change makes them reluctant to exchange experiences. Sometimes, a decision to change is made without prior consultation with those who are actually involved in the process, which could lead to changes that are necessary not being identified. Ignoring user opinions is a common mistake, often stemming from the hierarchical nature of management. During implementation, user feedback is incredibly valuable. After all, they will be the ones using the system, so any changes to the user interface or functionalities that are crucial to them must be discussed with them. If changes are introduced without involving end-users, they can lead to confusion or frustration, ultimately slowing down the entire project.
Lack of a data migration plan
Data migration is an inevitable part of any ERP implementation - after all, the company functioned and collected necessary data up until this point. If migration isn't properly prepared, planned, and executed, it can lead to serious issues in the future. Before beginning an ERP project, it's crucial to thoroughly discuss data migration with the implementation partner, determining which data needs to be imported and ensuring that it's in the correct format.
Lack of project documentation
Implementing an ERP system like Dynamics 365 Business Central covers many areas of business operations, which is why documenting each stage of the process is essential. This includes creating detailed documentation about how users interact with the new system, available functions, and how all integrations operate. This way, we ensure that the knowledge about a given process is consistent across all employees. This makes the transition to the new system much smoother and easier.
Insufficient system testing
Before launching a new IT system, it's important to thoroughly test and verify if everything works as expected. Testing should encompass all areas (sometimes referred to as "modules") being implemented, considering various business scenarios. There is no perfect system, so during testing, attention should be given to the smooth functioning of all integrations with other solutions. This prepares us better and provides an understanding of what we can expect from the new tool. System testing helps us minimize potential issues and ensures a smooth ERP implementation.
Neglecting the verification of the implementation partner
Lastly, it's crucial to verify service providers - partners who implement the technology of a specific manufacturer. This involves researching their history, case studies, and ensuring they possess the necessary skills and experience in the industry relevant to our company. It's well-known that specialization plays a significant role. For instance, if our company is in manufacturing, it's better to choose a partner specialized in manufacturing processes rather than a generalist who implements "everything, everywhere." Additionally, some partners - like Nav24 - can arrange conversations or even reference visits to clients for whom they have completed implementation projects. Investing extra time in verifying a potential partner is worthwhile, as the collaboration will be long-term. Therefore, it's essential to be satisfied with the partner's level of knowledge and service quality.
Are you currently in the process of selecting a new ERP system for your company? Do you need advice and support in choosing the right solution? Or perhaps you would like to learn more about the possibilities of Dynamics 365 Business Central and Nav24's approach to the implementation process? If so, feel free to reach out to us through the form and schedule a free consultation.
