3 Roads to ERP Implementation Failure

Gone are the days of small manufacturers having to stick to spreadsheets to track their business functions. Now more than ever, small businesses are turning to ERP solutions to handle their complex needs. This is mainly because ERP software is finally being made for small businesses. Software such as Acumatica has been making their powerful product suitable for a start up company's needs and budget. Unfortunately, with small businesses being new to the ERP scene there are a few common mistakes being made among them and in this article we will be addressing them.

Not sticking to the plan

When implementing an ERP software, some small businesses don't want to conduct a business process analysis. This leaves the vendor to try to guess what features would be most compatible with the company’s unique functions. Without a proper business analysis, it is impossible for the software vendor to know how your business operates. If the vendor doesn’t know how your business operates, it’s impossible for them to give advice the corresponds with what your business needs and how to appropriately tailor the software. Now is not the time to try to save money by skipping this step.  

No matter what vendor you use, the cost of implementing a new business software is too great for your company not to use it to its fullest advantage. It’s a great time to seek guidance on what the best practices are for your business operations and what role your software will play in it. More importantly, this will cause mistakes to be made that will result in delays in the project as the implementer will have to backtrack and ultimately cost the company more money.

Consultants don’t understand how your company works

Small company’s executives tend to get busy because they have a wider range of task to handle due to many of them having a smaller group of employees that they can hand duties off to. That when they usually will bring in an outside consultant to help bridge the gap between the executives and the software vendors. This sounds like a great idea until you realize the consultant knows nothing about your business, making them useless when it comes to giving the software vendor some background information to better the implementation solution. Again, if you want to get what you’re paying for in the implementation you’re going to want both team members and executives to contribute as much information as needed for a smooth and efficient implementation.

Can’t get it together

Everybody is entitled to their opinion, and when it comes to what software to implement and how it should be implemented everybody in the organization has one. The financing department wants the software that is known for having stronger accounting features but the Sales department wants something with better CRM capabilities. Because of this, it is ideal to make sure everybody in the company is on the same page and understands the overall company goals. That way they can cohesively decide which software is best for the big picture and the bottom line.

It’s also best to have a Project Manager (PM) to make sure everyone stays informed about the project and keeps the team up-to-date on the status which will include internal tasks, vendor tasks and the timeline.  

Would you like to learn more about how ERP implementations work for small businesses? Clients First office in Texas implements and supports clients across the U.S.A. and in 11 countries.  Clients First Texas is one of 7 locations including Minneapolis MN.   Our team of professionals are ready to help implement the best finance and operations solutions for manufacturers, project based manufacturers, MRO (maintenance, repair and overhaul, and professional services. Please contact our sales team at 800.331.8382 or sales@clientsfirst-tx.com for more information on our offerings from Acumatica or Dynamics AX.