1. Bijender MISHRA (B.Tech, MBA,PMP ITIL SAP CISM )
bijendermishra@gmail.com
Major Common ERP Mistakes and How to
Avoid Making Them !
Implementing an ERP system is among the
most expensive, time-consuming and
complicated tasks an IT department can
take on. The potential for delays and
unexpected expenses lurk around every
corner.
24COMMENTS
Costing anywhere from hundreds of thousands of dollars to millions of
dollars, and requiring hundreds of man hours to implement, enterprise
resource planning (ERP) systems are huge investments of money, resources
and time. And while a successful ERP implementation can help your
organization streamline workflow and cut costs, a poorly planned and
implemented ERP rollout can severely cost organizations, in terms of lost
productivity and delays.
ERP Mistake #1: Poor planning
"Planning is absolutely necessary if you want your ERP project to succeed, “You simply
can't wing ERP."
Majority of experienced IT professional will agree with me that "Many organizations
do not do enough up-front planning before they begin an ERP software evaluation and t
"This often leads to confusion down the road because they might not fully understand
their current processes and how to evolve them to maximize business benefits and
efficiencies."
To solve this problem, organizations should conduct an internal audit of all of their
processes and policies before choosing an ERP system. In addition, it is also
recommended to put together an ERP evaluation team composed of stakeholders from
across the business. And, if you feel you do not have the in-house capability to properly
evaluate ERP systems, consider hiring an experienced third-party, vendor-neutral
consultant, who has experience implementing ERP solutions at companies in your
industry.

2. Bijender MISHRA (B.Tech, MBA,PMP ITIL SAP CISM )
bijendermishra@gmail.com
ERP Mistake #2: Not properly vetting ERP vendors
"Many vendors gives you promises to have everything in their product and this is what
you want “ however once the implementation is complete you are surprised by system
functionality restrictions, lack of capabilities, and the impact on existing internal best
practices which helps you to improve your operational performance. Just to avoid such
scenario “Always ask for references. Request the names of at least three companies
"who are in your business sector, who you can contact and discuss the software with,
then call and discuss features, functionality, and challenges," If the vendor can't (or
won't) provide at least three names? "Walk away," unless you want to be a guinea pig.
ERP Mistake #3: Not understanding or using key
features.
"In annual ERP survey, only 46 percent of respondents reported having a good
understanding of which features they were using in their ERP system "This is shocking,
considering the millions companies invest in [their ERP systems]. Without knowing
features, companies miss opportunities to automate business processes, complete
functions faster, and meet business objectives," In addition, "upgrades, enhancements,
and maintenance are more costly, and less likely to succeed."
To solve this problem, I suggest creating a master list with all features, tracking usage,
and periodically reviewing the list to determine which features are being used and
which are the most helpful. "This knowledge catalog can [then] be used to train new
employees, write test scripts, and assist with audit, compliance, and reporting
requirements.
ERP Mistake #4: Underestimating the time and resources
required
"All companies grossly underestimate the time and resources required to implement a
new ERP system. How can you calculate the necessary time involved? "The time
involved can be estimated by dividing the cost of the software by 100, For example,
$20,000 for software will take approximately 200 man-hours or five weeks to implement
using a certified consultant. Double that number if you plan to self-implement with
minimal professional assistance." In addition, you need to assign a dedicated project
manager.

3. Bijender MISHRA (B.Tech, MBA,PMP ITIL SAP CISM )
bijendermishra@gmail.com
ERP Mistake #5: Not having the right people on the team
from the start
"Often times, organizations do not bring the right people together from the very start of
an ERP implementation, "ERP implementation is one of the biggest projects an
organization can undertake, and consequently, mistakes can be made and plans might
get derailed if the right stakeholders are not involved in every aspect of the decision-
making process, For example, many organizations focus on getting executive approval,
instead of gathering key participants from across the organization, from finance,
operations, manufacturing, purchasing, and the warehouse, in addition to IT. The
benefit: employees who are actively engaged with the ERP implementation, who have
an investment in getting it right, right from the start.
ERP Mistake #6: Not setting priorities
"When implementing an ERP system, the single most important thing one can do to
minimize delays and accelerate time to completion is to reduce multitasking, "People
work much slower when they are juggling multiple tasks and constantly switching
gears, Therefore, creating a priority system should be a top priority for IT managers.
"The priority system should not only indicate when to do which tasks, but should also
provide managers with the issues they need to resolve, per priority, In addition, "ERP
implementation managers need to implement a rigorous issue resolution process to act
upon those signals and remove issues immediately in order to avoid delays."
ERP Mistake #7: Not investing in training and change
management
"A lack of proper training is one of the most common reasons that ERP projects fail,
and it can also result in employees resenting the new system because they don't
understand it, "Making sure employees have a chance to become comfortable with the
new system before it goes live will do wonders for your chances at ERP success, "If you
don't make training and frequent communication with users a top priority, you will end
up owning a very expensive version of Excel."
ERP Mistake #8: Underestimating the importance of
accurate data
Your ERP system is only as good as the data that is in it. So, if you want your ERP
implementation to succeed, "it is imperative that proper programming and procedural
parameters are put in place [right from the start] to minimize the likelihood of errors.
ERP Mistake #9: Taking the kitchen sink approach
"No matter how powerful or flexible an ERP system is, it will not be able to absorb all
business logic, "One of the most common mistakes made during ERP implementations
is to assume that ERP can be used to run a business end to end . "To avoid this costly

4. Bijender MISHRA (B.Tech, MBA,PMP ITIL SAP CISM )
bijendermishra@gmail.com
mistake, companies should focus on implementing ERP to optimize value chain and to
trace costs. Everything else should be a secondary goal."
ERP Mistake #10: Not decommissioning legacy
applications
"If [organizations] do not actively work to decommission applications during the
implementation, the end result is an ERP with all of the original legacy applications
hanging off of it, "The end result is another piece of software that [you] are paying
maintenance and support on, paying for hardware and upgrades, and paying for
interfaces back into the core ERP," when the point of getting an ERP system was to
streamline workflow and reduce costs and waste.
ERP Mistake #11: Not having an active load testing
environment
"You won't be able to see the true results of your changes based on a couple of test
users, "You must be able to simulate your user load in order to see the real-world
effects of changes and avoid costly unplanned downtime."
ERP Mistake #12: Ignoring third-party support
alternatives
"Many companies insist on premium vendor support, despite the fact that maintenance
rates are at an all-time high and they can get the same level of service from a third-
party support provider, "Companies should explore all options for support, ranging
from hybrid support providers that work directly with their vendor to deliver service,
as well as providers that work independent of their vendor's partner program, "A
third-party support alternative can easily reduce support costs by 30 to 50 percent.
ERP Mistake #13: Not having a maintenance strategy
"Customers not conducting preventative maintenance are not taking full advantage of
their ERP investment and their maintenance dollars, "By not applying maintenance,
their systems will quickly become obsolete (from a technical perspective) as will their
business processes." Moreover, 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.