The most common pitfalls when implementing a new ERP

Over the past few years I have been heavily involved in the implementation of Oracle, SAP and Salesforce in my roles as financial analyst and financial controller. And from what I saw, it is safe to say that these ERP implementations are far from easy. Therefore, this is my -highly personal- list of potential pitfalls of getting a new ERP system.

  • Not investing enough time in the early stage. This is a classic to start with: top management, along with the IT department, is so excited to get started with this high profile project (think of their CV folks), and is a bit too eager to hit those first milestones in time. When forgetting to lay the foundations of the house… well you know the drill.
  • Never forget that the decision takers are not the ones who are going to work with the new ERP. So top management is prone to focus on what the new ERP will do for them rather than looking at what it will do for the company. In my humble opinion, a lot of development time goes to a smooth and good-looking reporting towards upper layers. The basal functionalities that need to be executed by the other employees are of much lower quality and often lead to increases in workload.
  • Many companies will spend millions on changing the software while expecting processes and formats to remain the same. More often than not, an implementation this size will, and should, have an impact on existing processes and reports, yes even on organisation. If your management expects exactly the same reports as before the implementation, they did not get the message. Think of managing your manager here.
  • The newly-approved lavish implementation budgets in the hands of starved IT departments often leads to an absolute overspend on external consultants in the middle and latter stages of the project. By that time, the shortcomings of a system will have become clear and your existing employees will have lost the energy and momentum. Having an unhealthy balance between external ‘experts’ and your internal employees will feed frustration and cause the latter party to ‘check out early’ in the middle stages of the project.

Any other experiences regarding ERP implementations? Let me know in the comments!


About curiousmanager

In life there are generalists and specialists. Although your job pushes you down towards a certain specialization, I feel it's important to keep your eyes and mind open for new stimuli. And I want to share my journey through arts, literature and sciences with other knowledge workers and managers. You don't have time to read. Let me do that for you and present only the best of the best in my blog!
This entry was posted in Finance for Curious Managers and tagged , , , , , , , , , , . Bookmark the permalink.

One Response to The most common pitfalls when implementing a new ERP

  1. DINESH says:

    Yes, i do agree with your thoughts. Added to your comments, me too experienced the similar issues. Moreover, the top management in the initial time thought it will have dramatic change in reporting system and reduce data recovery time etc,. but in reality the middle management will not deploy it’s man power to learn, understand and work with ERP experts. The user team is allowed less time to engage with ERP experts, sometime after their working after or completing their regular schedule of works. By this way, they won’t be showing much interest in learning. As you rightly said, in half way both will blame each other and leave with out attaining the end results.
    by not implementing in full, they have prepare reports in both ways, that will become head ache

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s