5 Common ERP Mistakes to Avoid in 2021 and Beyond


The post-COVID scenario has thrown up several new challenges in the field of resource management for businesses. The shift to the remote working model is likely to encourage more and more companies to adopt modern cloud-based ERP models to streamline their operations.

While businesses have the option to choose from an on-service ERP platform, cloud-based software, or a managed solution, choosing the one that suits their requirements is important. Here we talk about some common mistakes that many businesses make while choosing ERP software. 

Not Identifying Requirements

A common mistake most businesses make is choosing any ERP software without considering their own needs. What needs to be done is to carry out an evaluation of your own business and the identification of problem areas that can be rectified by using an ERP system. The aim of choosing an ERP program should be to make your current systems more efficient. 

Not Engaging Key Employees in the Process

Implementation of an ERP system will affect employees, dealers, and many other people. They need to be informed about the new systems and the automation that is going to take place. Not keeping them in the loop can lead to implementation problems besides leaving a lot of problems unresolved. 

Choosing the Cheapest Option

Many businesses wish to optimize, automate, and streamline their operations but without spending much. In this process, they tend to choose ERP software that is the cheapest and allocate inadequate funds for the implementation of the project. This can lead to disappointment and the continuation of inefficiencies in the system. Such a situation can be avoided by choosing the best software that is scalable, incorporates both HR and payroll, and can handle global operations too.

Choosing the Wrong Model

The choice between on-premise and cloud-based ERP solutions should be based on your business model. A cloud-based ERP requires good internet connectivity and is highly suitable for remote working models. On the other hand, on-premise ERP system requires in-house hardware, a dedicated IT team, and updated servers.

Choosing the System on the Basis of Promotions

While it is easy to get attracted by the promotional campaigns of ERP system providers, one should not make their decision based on them. Instead, check whether the features being offered are applicable or beneficial for your business or not. Since the basic reason for getting an ERP is to streamline your operations, ensure that the chosen software can do that.

Implementing the ERP in One Go

A major mistake made by businesses is to buy ERP software and to try implementing it in one go and expect immediate results. Instead, what is recommended is a step-by-step approach, adopted to allow employees and other parties to get used to the new system. 

Not Investing in Implementation and Maintenance of ERP

Many businesses believe that buying ERP software is enough and there is no requirement of setting up an implementation team that will coordinate between the various departments affected by the change. These businesses fail to realize that they also need to develop a maintenance strategy to ensure that the ERP software continues to function well with the changes in their organizations.