With application suites like enterprise resource planning (ERP), or CRM quite a few things can go wrong .....

4 Blunders to Avoid in Enterprise Resource Planning (ERP) System Implementations

With application suites like enterprise resource planning (ERP), or customer relationship management (CRM) quite a few things can go wrong with the implementation which is why the implementation team is of critical importance.  As anyone who has worked on large company wide software implementations can testify, the hardest part of the systems migration process is not the software evaluation of purchasing, it’s the implementation.

There needs to be strong communication and rapport with your company’s implementation point person, the ERP software vendor and the consultants implementing the application.  You may have heard or read about large ERP implementation disasters, over budget, implementations that took years to complete or never really fully completed.  The list of advice is long and numerous for large system migration or implementation failures.  A good way to check off the list is to look at the worst practices and use that as a starting point and do the opposite.

Using this as a guideline and focusing on the opposite, here are 4 guidelines to adhere to on your next ERP implementation.



1.       Mistake- Not looking at the long term strategy of the implementation, Focus- Look for the long term benefits of the implementation.

If an implementation is important, and beneficial to the company, it should be presented internally as such and given the appropriate visibility.   Many times large enterprise implementations are announced with little gusto, and the internal manager assigned to the implementation is not of a profile that has the clout nor authority to get the attention and commitment from the wide pallet of departments that touch the implementation.   The large vision of the implementation is not articulated to the parties involved and thus those involved in the implementation are not convinced of the importance of the project and don’t commit fully to the implementation.

On the other side, another common mistake is to load the implementation team with high level executives that are hands off with the day to day operations and therefore lack the understanding of specific tasks and processed that are performed on a daily basis at the granular level .

So, make sure that the c-level management are involved in articulating where the company is today and where it will be tomorrow, and why the new enterprise software is integral in the company’s future direction, but choose an implementation team of middle managers who are key users of the software and have the depth of understanding of the company process details and a grasp of where the company is headed strategically.

Now that the implantation project team is assembled, make sure that upper management is committed to the initiative by allocating resources, namely the manager assigned to the implementation.  In many cases, managers assigned to the implementation are placed on the implementation team, but are expected to continue with their current role with no reduction in workload.   With a recipe like this, it is not wonder that many implementations exceed their launch date or never reach the finish line.  It is vital that persons assigned to the implementation are given backfills to their regular jobs, at least partially.



2.       Taking on too much in an implementation- start in little steps

When dealing with a large organization and numerous offices, regions (geography) divisions, and departments it a good idea to release the live date in small bursts rather than one company wide launch date.  Many times a global launch, or even a national launch with every employee is too much for the company to handle.  As we discussed earlier about backfills and resources, its a lot easier to handle when you are dealing with one or a few divisions at a time.  A limited launch will also give you time to work out any bugs, and refine processes and the like before a company wide launch.



3.       Trying to make the new enterprise software look and feel like the legacy software.

We all know that most people are resistant to change.  Especially when it comes to established behaviors previously set with legacy software systems.  An employee may have been working with a software package for years, maybe even a decade and trying to learn a new software is many times like learning a new language.  The big mistake made is trying to get current users to embrace the new software by trying to replicate the old software with the new software.

Quite simply, a new software implementation is happening for a reason, it’s better than the old system.  If not, then a company should not bother implement a new enterprise system.  The pill may be a slightly bitter one to swallow at first, but if the new enterprise system is what it should be, users will find that although its different than legacy systems, in the long run it will provide information and streamline processes, reporting, and overall commincation better, faster and easier that before.



4.       Experimenting with new implementation methodologies

For whatever reason, whether it be an attempt to shortcut the implementation process, save money, save time, get recognition for being innovative, an implementation manger or team may try stray from the traditional implementation methodology and find disastrous results.  The process of enterprise system implementations have ferreted out over the last 30 years by thousands of companies and implementation consultants.  The time for innovation is not during your company’s implementation rollout.  The success of the implementation should not be risked at this critical moment.  The four basic steps of the implementation are as follows:

A.      Project Scope and Process Mapping

a.       Identify business processes and how they will be integrated in the software

B.      Detailing the Process Mapping

a.       Break out the high level processes into granular tasks and details

C.      Testing

a.       Run a test in parallel to legacy systems to ensure accuracy and that all the pieces are encapsulated in the new enterprise system

D.      Launch

a.       This includes training and support throughout the implementation process both before rollout and after.



Again it may be tempting to try and streamline costs, or be a hero during implementation, but chances of a successful implementation is far greater by following these for implementation steps and avoiding the four common causes for implementation failures.