ERP implementation challenges that make or break a new system are: active support from the top, clean data migration (garbage in, garbage out), optimizing processes instead of copying legacy ones, planning reporting for future growth, and ignoring shiny objects outside the project plan. Lack of active leadership support is the most common reason implementations fail.
ERP and other new system implementations have a lot of moving parts and a lot of risk. Five challenges decide most outcomes:
Challenge 1. Support From the Top is a Must
In fact, not only is support from the top of the organization required, but active support is required. System implementation projects cross departments, teams, managers. They require communication and collaboration at different levels than every day work. To be successful, company leadership needs to actively show support for the project, the project team, and the goals of the implementation. This is the most common reason for system implementations to fail.
Challenge 2. Garbage In, Garbage Out
Data migration is the step where records move from the legacy system into the new ERP, and it is the cheapest point to purge and correct them. So many managers insist on migrating as much data as possible from the legacy system to the new system. They do this because they think it will save time. What they fail to realize is that legacy systems are legacy because they no longer meet the needs of the business. Do you really want to carry forward data that doesn’t meet the needs of the business?
Implementing a new system (or even a major upgrade) is a perfect time to clean house. Analyze your data and keep what makes sense for the future of the business. Purge old records. Take the opportunity to update your customer and supplier lists, to update your employee lists, to reorganize your company’s data. Once it is in and live, it’s almost impossible to change.
Challenge 3. Optimize, Optimize, Optimize
Another mistake managers make is to think that blindly reusing all their current processes is a good idea with the new system. It’s not. The current processes are built with the legacy system’s capabilities in mind. Analyze all of the processes the new system interacts with and use the implementation as an excuse to optimize them as much as possible to take advantage of the new technology. Packaging manufacturers reduce this work by choosing ERP for packaging manufacturers, such as Advantzware, which is built around estimating, scheduling, inventory, and order-to-cash.
Challenge 4. Planning for Future Growth
A key ROI driver for new systems is related to data optimization and the availability of reporting on this data. The implementation process is the best time to rethink how your business uses data and what metrics it follows to understand how it is performing. Take the time to build data capture and reporting for the key metrics your business will use to measure and optimize performance over the next 12-36 months. Doing this one thing can fundamentally change the realized ROI of the new system and make heroes out of the project team. Compare purpose-built manufacturing ERP systems before you plan data capture and reporting.
Challenge 5. Ignore the Shiny Objects
Like mentioned above, there are so many factors involved in a new system implementation. Most of them are not within the control of the project team or the project itself. To be successful, you have to push aside that which the team cannot control and focus on executing the plan. Don’t be distracted by shiny toys, no matter how new they are.
Advantive’s implementation experts work with you to define goals, business requirements, and resources before kickoff. For Advantzware ERP, onboarding combines on-site training, online training, and project management, and a detailed implementation plan is completed with your system administrator before the project starts. Get a demo.
