10 ERP implementation best practices
July 6, 2023
The growing demand for transparent and efficient business processes is forcing more and more companies to implement ERP solutions. However, not all implementations go smoothly. ERP failure often involves business process disruption, time or budget overruns, or employee resistance. While each company handles ERP failures differently, they do happen for a reason.Â
So how to set up your ERP implementation project for success? Here, we explore the most common reasons for ERP failures and provide recommendations to avoid unnecessary costs and prevent disruptive issues.Â
ERP failure stats
of ERP transformation projects end with time and cost overruns
McKinsey
of ERP transformation projects have a negative ROI
McKinsey
of companies experience operational disruption when deploying ERP
Third Stage Consulting Group
Common ERP implementation risks
- Unclear business requirements lead to enterprise resource planning scope expansion/uncertainty and poor technology choice.
- Poor stakeholder alignment on project objectives, priorities, and strategies result in inadequate project implementation, lack of timely support, and budget allocation issues.
- Lack of C-level buy-in leads to ERP project delays, insufficient budgeting, or project cancellation.
- Lack of organization-wide change management results in project delays, cost overruns, and eventual ERP abandonment.
- Poor project planning and unrealistic expectations (timeframes, budget, deliverables) lead to cost and time overruns.
- Insufficient data quality and data migration management cause poor decisions and high compliance risks.
- Unsatisfactory user training and user support, insufficient onboarding strategy, and lack of user feedback give rise to resistance to change and low ERP adoption rates.
- Lack of necessary ERP skills results in project delays and budget overruns.
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10 ERP implementation best practices
1 Assemble a strong project team
Having all the right people to implement your ERP solution is crucial for the project’s success. Here are the specialists we recommend you include in your ERP implementation project team:
ERP executive sponsor
Some companies reduce the executive sponsor’s role to contract signing. However, strong executive sponsorship can contribute to the ERP project’s success by prioritizing its implementation among other company projects.
Subject matter expert
A professional with advanced knowledge in the industry/domain/business process who helps bridge the gaps between the project team and end-users.
Project manager
A project manager is an internal specialist who works with the executive sponsor to form the project's vision and supervise ERP implementation.Â
Implementation partner
The implementation partner is responsible for delivering the ERP to the company’s environment. The ERP implementation team can consist of multiple specialists depending on the project scope. It can include a project manager, a business analyst, a solution architect, a UX/UI designer, developers, DevOps engineers, QA engineers, DBAs, and support engineers.
Change management committee/agent
A person or a team that oversees organizational changes, creating and executing a change management strategy in line with project requirements. They are critical intermediaries between the implementation partner, executive sponsor, project sponsor, and the rest of the company, especially during the deployment and after-launch support.
Functional team members
Employees from various business departments who will use the ERP software daily and can elicit functional ERP requirements.
Superusers
ERP software users with leadership skills who will drive ERP adoption and communicate its value to their colleagues. While they become helpful post-implementation, companies should involve them in the project from the early stages to help them gain the necessary knowledge and skills.
The benefits of successful ERP implementation
Improved collaboration
ERP implementation minimizes the risk of data duplication and inconsistency through data standardization and centralized storage. Role-based access enables seamless data sharing and improves interdepartmental collaboration.
Cost reduction
ERP software can significantly reduce administrative and operational costs by automating manual data entry and repetitive processes (e.g., payroll and invoicing). Additionally, as ERP integrates other business software, companies can spend less on user training since they have to interact with a single system.
Smart decision-making
With quick and easy access to systematized business data and analytics insights, ERP users can better plan and budget improvements and forecast business trends, timely identify growth opportunities, detect bottlenecks and inefficiencies, and act accordingly.
Increased productivity
A correctly implemented ERP solution automates repetitive and error-prone activities. It also enables employees to focus on their core tasks and accomplish them quicker.
Data security and compliance
ERP software helps control and limit access to business data, so that employees can only see the information they need and are allowed to. Moreover, organized and easily searchable data simplifies compliance with multiple data-related requirements.Â
Business growth
A well-implemented ERP platform can quickly scale and integrate with new software systems, supporting core workflows as the business grows.
3 success stories of ERP implementation
90%
manual tasks automated
ERP system for a repair and maintenance service company
We implemented a full-scale ERP solution based on Odoo to automate the customer’s core business processes. ERP adoption resulted in a 50% reduction in purchase order approval time and 100% accelerated work order management.
-10%
DevOps cost
ERP/LMS solution for an eLearning company
Itransition implemented an Odoo-based ERP/LMS suite to help a US eLearning company streamline administrative functions, including student data entry, enrollment, and scheduling. Â
+21%
sales growth
Software suite for a UK furniture manufacturer
Itransition implemented the CRM/ERP system to help the customer transform back-office workflows and pioneer new ways of customer engagement, such as a VR-based kitchen design experience.
90%
manual tasks automated
ERP system for a repair and maintenance service company
We implemented a full-scale ERP solution based on Odoo to automate the customer’s core business processes. ERP adoption resulted in a 50% reduction in purchase order approval time and 100% accelerated work order management.
-10%
DevOps cost
ERP/LMS solution for an eLearning company
Itransition implemented an Odoo-based ERP/LMS suite to help a US eLearning company streamline administrative functions, including student data entry, enrollment, and scheduling. Â
+21%
sales growth
Software suite for a UK furniture manufacturer
Itransition implemented the CRM/ERP system to help the customer transform back-office workflows and pioneer new ways of customer engagement, such as a VR-based kitchen design experience.
90%
manual tasks automated
ERP system for a repair and maintenance service company
We implemented a full-scale ERP solution based on Odoo to automate the customer’s core business processes. ERP adoption resulted in a 50% reduction in purchase order approval time and 100% accelerated work order management.
-10%
DevOps cost
ERP/LMS solution for an eLearning company
Itransition implemented an Odoo-based ERP/LMS suite to help a US eLearning company streamline administrative functions, including student data entry, enrollment, and scheduling. Â
+21%
sales growth
Software suite for a UK furniture manufacturer
Itransition implemented the CRM/ERP system to help the customer transform back-office workflows and pioneer new ways of customer engagement, such as a VR-based kitchen design experience.
Minimize the ERP failure risk with a trustworthy partner
Implementing a new ERP system is a great digital transformation opportunity. Well-implemented ERP software helps expand legacy systems' limited functionality and improve existing processes. However, an ERP implementation project is risky like any other resource-intensive project, so rely on well-defined best practices to reduce potential risks. To lower the risk of failure and get the most out of the ERP system, you can turn to Itransition’s ERP expert team to guide you through this journey. Â
