Sunday, 14th March 2010.

Most common mistake in ERP implementation

Written on Monday, 16th February 2009 by Neeta

Consider a big organization with fully developed and established legacy systems. Organization has been running its businesses for so many years with fully developed and matured legacy systems. Now with scaling up of operations and a need to achieve better harmonization amongst various departments of organization, management has deemed it fit to go out for an ERP implementation.

Management is under pressure and wants to go ahead with ERP implementation at a fast pace. The implementation team, the trainers and the persons from the organization know that given time line is not feasible. Team has done an excellent exercise and prepared a fine blueprint and the roadmap.

ERP system

Since the timeframe is fixed, team decides to go in for customization right in the beginning. This is the most common trap which an organization finds itself in. Customization right in the beginning without understanding an ERP system and what it can deliver should never be undertaken.

Pilot ERP system should initially run in parallel with the legacy systems and all intermediate steps right from inquiry, ordering, procurement, billing and sales closure, should be closely monitored and compared on to the two systems. Once the comparative studies have been done, then only the ERP rollout should begin.

Don’t fix a timeframe before finalizing the blueprint. Some organizations with lesser complex systems can implement ERP within a short span of time while some matured and old organizations with relatively complex systems, will take much longer time.

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