3 Common Post-ERP Pitfalls

by
Oscar Villanueva
July 24, 2024

ERP systems are a critical investment for companies to improve data precision, bolster decision-making processes, and ultimately contribute to increased efficiency, productivity, and organizational growth. Selecting and implementing these systems requires time, resources, and effort to provide tools to support employees as they perform their day-to-day activities. Once the system goes live and is stable, companies often disband the project team completely.

Unfortunately, many companies find they are not obtaining the expected value from the new system after a few months. Employees seem to struggle to use the system, the system is not as stable as expected, and processes just don't seem to be as efficient as expected. While a post-ERP assessment can pinpoint root causes for the inefficiencies, there are three key areas a company can attack immediately. These include:

1. Insufficient Training and Support

Without clearly understanding the benefits of a new ERP, users may not recognize its value, leading to resistance in adopting and learning the system. Organizations can mitigate resistance by clearly communicating the benefits and goals of the ERP system, emphasizing how it will improve work processes. Support from leadership at the company can help bolster more support from the user base.  

A lack of adequate training encourages employees to revert to old manual processes, which diminishes the system’s return on investment. Failing to continuously train users can lead to higher support costs and put additional strain on the IT team and system administrator. Incorporating practical exercises into training sessions equips users with the necessary system expertise. Such an approach is vital for ensuring data integrity, as data entry errors can significantly compromise data accuracy. Developing training materials such as how-to guides, walkthrough videos, and FAQs can be valuable resources for continuous learning.  

2. Lack of Continuous Improvement

Continuous improvement after an ERP implementation relies on enhancing both business processes and the ERP system. Regularly revisiting and improving these processes and system functionalities in conjunction is crucial, as their alignment can drive mutual growth and enhance overall effectiveness. The ERP system must be updated to support improved processes, and enhancing the system’s functionality can drive the development of new and improved processes.  

Another way to continuously improve an ERP for the long-term is to implement system monitoring tools. Without adequate monitoring tools, subtle yet critical performance setbacks—such as increased response times, more frequent downtimes, and declining productivity—can easily go unnoticed. To preemptively address these issues and drive continuous system enhancement, it is essential to implement real-time monitoring tools, conduct consistent system audits, and establish a feedback loop for ERP functionality.

3. Excessive Customizations

ERP vendors regularly release updates and patches to improve the system’s functionality and security. Every customization to an ERP system increases its complexity, making maintenance, upgrades, and troubleshooting more challenging. Over-customization can hinder the update process, often necessitating extensive testing and additional modifications. Maximizing the system's out-of-the-box functionality helps organizations fully leverage its capabilities and avoid unnecessary customizations.  

System administrators should create an inventory of all system customizations, including their purpose and interdependencies. ERP customizations should be reserved for business-critical needs rather than non-essential enhancements. Before approving any customizations, conduct an impact analysis to assess the compatibility of the customization. Designing customizations to be modular and loosely coupled with the core ERP system enables update and patch issues to be addressed in an isolated environment.

Post-ERP Guidance

Trenegy has successfully helped numerous companies obtain the expected value out of a new ERP through our proven, fit-for-purpose methodologies. Trenegy will perform a post-ERP assessment to identify all root cause issues and create a roadmap to success. If you’d like more information, please read our Post-ERP Assessment Guide or reach out to us at info@trenegy.com.