10 ERP implementation best practices

10 ERP implementation best practices

July 6, 2023

Konstantin Pilkevich
by Konstantin Pilkevich, Head of Itransition's ERP Center of Excellence

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. 

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. 

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

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.

Looking for a reliable ERP technology partner?

Contact us

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. 

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. 

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

ERP system for a repair and maintenance service company

90%

manual tasks automated

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.

ERP/LMS solution for an eLearning company

-10%

DevOps cost

Itransition implemented an Odoo-based ERP/LMS suite to help a US eLearning company streamline administrative functions, including student data entry, enrollment, and scheduling.  

Software suite for a UK furniture manufacturer

+21%

sales growth

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.

ERP system for a repair and maintenance service company

90%

manual tasks automated

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.

ERP/LMS solution for an eLearning company

-10%

DevOps cost

Itransition implemented an Odoo-based ERP/LMS suite to help a US eLearning company streamline administrative functions, including student data entry, enrollment, and scheduling.  

Software suite for a UK furniture manufacturer

+21%

sales growth

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.

ERP system for a repair and maintenance service company

90%

manual tasks automated

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.

ERP/LMS solution for an eLearning company

-10%

DevOps cost

Itransition implemented an Odoo-based ERP/LMS suite to help a US eLearning company streamline administrative functions, including student data entry, enrollment, and scheduling.  

Software suite for a UK furniture manufacturer

+21%

sales growth

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.  

Mitigate ERP project risks with Itransition

Get in touch

FAQs

Which is the most challenging phase in ERP implementation?

How long does an ERP implementation take?

How can you prevent ERP implementation delays?