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Implementing enterprise resource planning (ERP) software can be a game-changer. Your organization will house core business processes—from finance to supply chain to HR—on a single, centralized platform, boosting visibility, collaboration, and data-backed decision-making.
But ERP implementations don't always reach their maximum potential because organizations underestimate the complexity of the process and the importance of a structured change management approach.
This said, with proper planning and by following best practices, businesses successfully migrate work to an ERP and get plenty out of the tool. Here, learn how an ERP solution can support your organization and the most pressing challenges teams face when adopting this software.
ERP implementation in practice
ERP implementations are far more involved than simple software installations. These platforms transform the way businesses work and must be accompanied by careful planning and an intentional change management approach.
ERP implementation entails:
- Translating existing business processes into structured system workflows: When implementing an ERP, teams must first document how work already gets done. This way, they can correctly configure workflows in the new system and look for ways to optimize them. Processes may currently happen across different legacy systems, so change leaders will also need to unify this dispersed information into a standardized set of workflows.
- Aligning data models, permissions, and controls across teams: Teams work differently, but upon transferring to an ERP system, they will need to standardize central data procedures. For example, if your HR team stores employee data in a different format than your finance team, you will need to decide on a single way to model information in the new system. And implementation leaders must also establish user permissions and data security best practices that everyone will now follow.
- Coordinating IT, business users, and vendor partners: ERP implementations involve the support of several stakeholders—from members of the IT department (who will not only use the system but also perform an essential role in handling support requests) to end users and the vendor’s external consultants who help the organization install and roll out the software. Implementation leaders must follow a clear communication plan to ensure that all key stakeholders participate in the process.
- Managing process change, data migration, and adoption at the same time: To prevent downtime, companies implementing ERPs often need to balance data migration and user adoption tactics (like testing and training) at the same time. An implementation can fail if leaders simply configure workflows in the ERP platform and transfer data without preparing end users to use this new tool in their daily work.
- Treating implementation as a lifecycle rather than a single go-live event: ERP implementations are iterative processes, in which leaders and end users consistently look for ways to improve the tool. Encourage open communication from team members about what works and doesn't in the platform, and listen carefully to their suggestions. It’s also smart to have dedicated IT support channels (especially after launch) to quickly resolve the issues that users flag.
Challenge #1: Data Readiness
Data is the most common and underestimated source of ERP implementation risks. Before implementation, data is stored across legacy systems, spreadsheets, and other platforms in a variety of formats and under the ownership of diverse teams. Teams must clean up and unify data before transferring it to the ERP to prevent processes from running on erroneous information. Of similar importance to cleaning data up is validating it for accuracy after migration, as the transfer may have introduced new errors or teams may have missed something when performing clean-up.
Data clear-up implies correcting inconsistencies, standardizing formats, and eliminating duplicates. And this work can be particularly tricky because of unclear ownership. Certain information may seemingly "belong to no one," and therefore, no one claims it for clean-up.
Unfortunately, teams' data migration processes often fall short due to tight implementation timelines. But the upfront effort is worth the investment in the long run.
Challenge #2: Process misalignment and inconsistency
ERP implementations surface and exacerbate existing process problems. If different teams follow distinct workflows for the same activity, then implementation leaders will have to standardize a single flow so as not to configure dispersed processes in the ERP. Or if teams don't even have consistent processes, they will need to be defined before attempting to model them in the new software.
Implementing an ERP without first aligning on processes can result in configurations that don't mirror how work actually gets done or that model false expectations of what workflows should look like. But the ERP can't fix broken or underlying processes.
A lack of workflow direction can become an even bigger problem if broken processes get automated in the ERP software. Teams will make mistakes more quickly—thanks to the speed of the automation—and have less visibility on where work went off track because they are no longer directly performing it.
Challenge #3: Change management and user adoption risks
Even with a flawless technical ERP implementation, problems can arise—in the form of change management issues. End users may not adopt the system and instead create workarounds to continue performing time-consuming work in obsolete, redundant ways.
Companies can mitigate this issue with a clear change management strategy that includes users in design and testing, taking their feedback on process improvements along the way. After all, these are the people who will use the system in daily work, and they need it to be functional. Training on new workflows is also key. Users should feel confident performing tasks in the new system and know that their managers are open to questions and concerns.
Challenge #4: Customization, scope creep, and governance
ERP systems are powerful, and teams may be tempted to take advantage of every little feature, whether or not those functionalities support work. Implementation leaders must be wary of over-customization and poor scope control that will only complicate the configuration and use of the ERP tool.
Excessive customization will also lead to higher costs and longer implementation times, limiting the initial value of the tool. It's best to start small and refine customizations over time, eventually achieving a completely tailor-made ERP solution.
Reducing ERP implementation risk early
Follow these ERP implementation best practices from the start and configure an agile platform that supports your workflows and teams.
- Invest time in data clean-up and governance upfront: Unify and rectify data before transferring it to your ERP system, where bad information will feed into new processes, generating errors and slowing down work. Remember that most ERP implementation mistakes start with bad data.
- Standardize core processes before configuration: Standardize workflows (including those that teams perform differently) so that you can clearly plan configurations. This exercise will also surface inefficiencies that you can optimize with the new tool.
- Limit customization to high-value use cases: ERP systems have plenty of functional out-of-the-box features to support workflows without over-customization. Only customize when doing so will bring clear value, like saving time or money.
- Involve users continuously, not just during training: Gather all key stakeholders, including select end users, from the start. Their real-world insights on processes and data governance are essential to planning and executing migration and configuration.
- Plan for post-go-live optimization and support: ERP implementations are iterative processes, and you shouldn't expect to get everything right on the first try. Encourage feedback from users, and have IT staff on-call to implement optimizations and provide support.
How Scribe Capture helps teams address ERP implementation challenges
ERPs present risks, but when implementation is correctly planned and governed, they can transform organizations for the better. Run a healthy implementation with clear process documentation that supports planning, go-live, and post-launch stabilization.
Scribe Capture automatically transforms your current workflows into step-by-step, visually-driven operational process documentation that you can reference when configuring the ERP system and training users. Scribe Capture even updates documentation post-launch, as you optimize workflows.
When you use Scribe Capture, you:
- Accelerate training and go-live
- Remove subject-matter experts as training bottlenecks
- Provide a single source of truth as a process reference
- Align ERP workflows before, during, and after launch
FAQs
How to encourage user adoption when rolling out an ERP?
Low user adoption can lead to poor return on investment (ROI). When people don't interact with the ERP platform, they don't benefit from the time-saving, accuracy-driving features this system provides. Instead, they create chaotic workarounds that can not only slow down work but also put data at risk and endanger the company's compliance standing.
Is it better to customize an ERP system or change existing processes?
There is no one right answer, but during an ERP software implementation, it can be wiser to model processes using the tool's out-of-the-box configurations to save time and money. That said, if there is a particularly high-value customization that supports an existing, functional, standardized workflow, it may be worth modifying the platform to support it.
