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A failed ERP implementation can cost millions of euros. This was the case for Lidl, which spent 500 million euros on an ERP project that ultimately failed.
What are the mistakes to avoid when implementing ERP in a company? What are the best practices for avoiding failure? This article gives you 12 mistakes to avoid if you don’t want to fail with your ERP implementation, as well as 9 best practices for a successful ERP project.
12 mistakes not to make when implementing an ERP system
Not having clear, precise objectives
When you decide to implement ERP or any other software, you need to set objectives to give meaning and value to the project, and to choose the most appropriate software.
Objectives must be clear and precise. This could mean, for example, reducing the time spent on invoicing by 10%, reducing unpaid invoices by 15%, improving communication with employees, etc. As you can see, you need to be able to measure the extent to which you’ve achieved your objectives.
A poorly defined objective risks misleading stakeholders and steering the project in a direction that won’t bring real added value to the company. By establishing KPIs (key performance indicators) from the outset, you’ll be able to adjust the project as it progresses and quickly identify any deviations.
No strategy
The implementation of an ERP system will affect a large part of the company and its processes.
You need to take into account your company’s operations and business continuity, so that the project can be carried out without jeopardizing the business.
How long? Who runs the project? What software is already in place? What are the company’s strengths and weaknesses? Etc.
A well-defined strategy also makes it possible to anticipate potential conflicts of interest between departments, prioritize actions, and manage resources more effectively. It serves as a roadmap to stay on course, even when the unexpected arises.
Not involving key employees
To implement your strategy, you need to involve the project’s key collaborators. They’ll be in a better position to tell you what would work in their department, what their strengths and weaknesses are.
They also know their teams better, so they can identify employees who may be resistant to change, or who may need extra support. What’s more, involving leaders is a source of motivation.
Furthermore, involving them from the outset helps foster a sense of ownership of the project, thereby promoting overall buy-in. It also makes it possible to identify potential points of friction between the old system and the future integrated processes at a very early stage.
Underestimating your budget
Involving key employees is also essential for defining the features you need and, as a result, establishing a budget that aligns with your project.
On the one hand, this will enable you to see if you have the capacity for the project initially imagined, or if you need to readjust certain elements. On the other hand, you’ll avoid spending money only to end up not completing the project.
Indirect costs must also be included in the budget, such as time spent by internal teams, training, temporary loss of productivity, and post-implementation maintenance and support costs. A well-calibrated budget ensures the success of the entire project.
Opt for an on-Premise solution without the resources
If you want to implement an On-Premise ERP system, that’s your choice. However, you need to think about the resources (human and material) you’ll need to maintain it, and include this in the project budget.
Why not weigh the pros and cons of an on-premises solution versus a SaaS solution? Based on the results of your research, you’ll be able to determine whether or not your company is equipped to handle an on-premises solution or whether it would be beneficial for it to switch to SaaS.
SaaS solutions often offer better scalability, simplified maintenance, and a lower upfront cost.
Not thinking about long-term needs
Your company is evolving: business development, takeover, recruitment, to name but a few examples. As a result, the ERP that supports your production processes must be able to evolve with your business.
It would be a shame to have to spend yet more time and money implementing a new ERP system. So you need to identify an ERP system that can keep pace with your company’s evolution.
Also, be sure to check whether the ERP vendor offers regular updates and responsive technical support. These factors are essential for supporting your company’s growth without any service interruptions.
Take features you don’t need
Having too many unused functions makes the software more complex to use, and can lead to reluctance to use it. The objectives you have clearly defined beforehand should help you identify the features you need.
Every unnecessary feature adds to the cost—not only at the time of purchase, but also in terms of training and support. Prioritizing simplicity helps speed up user adoption of the system.
Not upgrading your processes
An ERP project is an opportunity to review and improve your processes. It would be a mistake to keep your old practices and only apply them to an ERP.
Why? because if your processes weren’t optimized, having an ERP wouldn’t change anything, other than making an unsuitable process faster.
Upgrading your processes allows you to take full advantage of the ERP system’s capabilities, particularly by automating certain tasks, reducing duplication, and improving the traceability of information.
Failure to implement change management
Don’t underestimate the impact that reluctant collaborators can have on your project. Indeed, this could lead to a drop in performance and thus have an impact on the company’s business.
Effective change management includes regular communication, tailored training initiatives, feedback tools, and, above all, the identification of project “leaders” in each department to relay information and motivate their teams.
No training
Implementing new software means training the employees who will be at the heart of the new tool’s success. The more they master it, the more you’ll see the benefits.
On the other hand, not investing in training could cost you more money than the training itself. On the one hand, because your employees won’t know how to use the software and therefore won’t be able to benefit from the advantages the solution brings; and on the other hand, you’ll have wasted money investing in a project and are losing money because your employees are losing performance.
It is recommended to schedule several rounds of training: one before deployment, another at the time of launch, and then review sessions a few weeks later. This ensures that users gradually become familiar with the features.
Putting the wrong people on the project
To ensure the project’s success, you need to assign the right people to your ERP implementation project. These individuals must be capable of managing a project of this scale and handling the challenges that come with it (managing unforeseen issues, change management, etc.).
The ERP project manager must also be able to communicate effectively with both business teams and technical service providers. A strong understanding of strategic issues and solid project management experience are essential.
Under-testing the solution
To find out whether the software meets your expectations, and is adapted to your company’s processes, you need to test it thoroughly.
To do this, you can set up scenarios to see how the solution reacts.
Setting up an ERP system is a big project that needs to be prepared. Going in blind will cost you a lot of money. Here are the best practices for a successful ERP project.
9 best practices for successful ERP implementation
Take stock of your business
Identify your strengths and weaknesses, software already implemented, processes, IT-savvy staff and those who need training, etc.
Based on this information, you can draw up the project specifications; the more detailed they are, the better you will be able to identify your needs.
Define clear objectives
Define the objectives to be met by the project and set up the KPIs to measure them.
This will enable you to measure the success of your implementation. Have you reduced your unpaid bills? Is your billing process faster? Etc.
Sorting through your data
Take advantage of the data migration to identify relevant data and build a solid foundation for more reliable reporting, enabling you to make decisions that will drive your business’s growth.
Putting the right person on the project
This person must not only master the subject matter, but also understand how the company works, how to deal with unforeseen circumstances, how to cope with difficulties; in short, he or she must have the shoulders to manage the project. This person must be able to commit 100% to the project.
Choosing the right supplier
Your choice of vendor will also impact the success of your project. The vendor must be able to support and advise you. It must be able to offer services to help you implement its solution in your company (training, support, etc.).
Have a good plan of action
Prepare your action plan carefully: the better you prepare it, the better you’ll be able to handle difficulties—and even anticipate certain problems.
Establishing good communication
Change is frightening, even stressful. You need to support your employees by communicating with them.
Be patient
ERP implementation takes several months: you need to be patient and accept that a few unforeseen events may occur.
Success is measured over the long term. It’s therefore normal to encounter obstacles along the way. What matters is your ability to overcome them without losing sight of your goals.
Ensure that the solution is interoperable
You probably use other software in your company. So you need to make sure that the new solution will be able to interface with other software if you want to keep some of it.
Interoperability helps prevent duplicate data entry, streamlines data exchange, and ensures the continuity of your business processes.
You now have all you need to successfully implement an ERP system.
Make Your ERP Project a Success with Veryswing
Implementing an ERP system is a strategic project that has a profound impact on a company’s organization, processes, and overall performance. To maximize your chances of success, it is essential to have the right support and the right tools.
That’s why Veryswing does everything it can to help you make your ERP project a success:
- Tailored support: Kickoff meetings, project group workshops, coaching…
- Ongoing support: training, webinars, technical support, FAQs…
- A scalable tool with a roadmap guided by its customers
- A user group for exchanging ideas, learning, and sharing needs…
Veryswing is the publisher of VSActivity and VSPortage, two powerful ERP software solutions tailored for service companies and umbrella companies, which support you through every stage of your digital transformation.
Manage your ERP project from start to finish with VSActivity
With our VSActivity ERP software, you get a comprehensive solution for:
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Structure your business processes before, during, and after ERP implementation;
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Easily manage your projects, time, tasks, and resources;
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Have custom dashboards to track your KPIs in real time;
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Facilitate collaboration among teams using integrated tools.
This way, you can avoid common ERP project pitfalls and stay on track toward your performance goals.
A solution designed specifically for umbrella companies: VSPortage
If you are an umbrella company, VSPortage is designed to offer you:
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Seamless management of agency consultants, contracts, pay stubs, and billing;
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A dedicated space for each stakeholder (contract employee, client, HR);
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Simple reporting to track activity, margins, and overall performance;
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Seamless integration with your existing tools.
VSPortage helps you streamline your internal processes while supporting your growth with confidence.
Why Choose Veryswing’s ERP Solutions for Your Digital Transformation?
Our solutions enable you to manage all the key aspects of your business:
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Financial management and analytical monitoring;
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HR Management (vacation, absences, expense reports, etc.);
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Customer Relations and Sales Management.
Request your free demo today and discover how our ERP software can turn your project into a real driver of growth and performance.
