5 Pitfalls to SME Owners should avoid in the implementation phase of an ERP Software

• Not having a phase-wise approsach

• Postponing implementation for perfection

• Poor testing, poor feedback

• Not having a proper training session to educate users

• Not using the ERP system to its fullest

1. Not having a phase-wise approach

When it comes to product development, start-ups take an iterative approach.They build minimum viable products, measure the key metrics, and improve based on feedback. A similar approach would be the best way to go about ERP Software implementation.

It is better to focus on a minimal set of functions and features in Phase 1. By doing this, you focus on the must-have features, pushing the "should have," "could have," and "would have" features to future iterations. This ensures that you invest in what is important. Once those functions are developed and implemented, the users start to trust the value the software adds to their lives.Take one step at a time.

At the end of this phase, as an entrepreneur, you will be able to get a feel for the quality of the software, the outcomes, the degree of adoption in your organization, etc. At this point in time, you will be able to make the best decision with respect to expanding to other functions and features, depending on the outcome. This makes design, development, and deployment easy while minimising your financial risk. Remember, 70% of the features are not used in most of the software.

2. Postponing Implementation for Perfection:

Action is the buzzword in business. It is even more important for implementation of ERP software. Many entrepreneurs wait for the entire system to be error-free before implementing it. Do not get me wrong. I am not suggesting that you start using a system that is full of bugs. Rather, it is better to identify key functionalities and workflows, see if those are working fine, and then start using those key aspects.

The longer you spend perfecting the system, the higher the adoption barriers.The team will start having negative opinions about the quality of the product. For this approach to work, you need to set the right expectations with your team. They should be educated that software implementation is an iterative process, and having bugs is not a mistake; it is part of the process. Build, use, and share the feedback with the developers—that is how it should work. Build, build, build does not get you anywhere. Your implementation timelines get postponed indefinitely, and there is nothing more frustrating for an entrepreneur.

3. Poor Testing and Poor Feedback:

For any software implementation to be smooth, it is important that it is tested at the development end extensively. At the user end, it is important to share the list of bugs along with the order of priority so that the development team can fix things for you so that you can go live with the critical functions. I have seen that many entrepreneurs don’t have the patience to have things tested on their end. They assume that things should be perfect by default. It does not work that way. Spilt your phase-one scope into key independent workflows. Make workflows a priority.Start fixing the bugs based on the priority of workflows. But start using the functions that have been fixed. Not testing the functions before you implement them is as big a mistake as waiting for everything to be perfect. Take the middle path: split work flows, test workflows, fix errors based on priority, and take workflows and functions live. Repeat until all the work flows in the phase 1 scope are complete.

This approach creates a simple, strong, and fast feedback mechanism, which the development team would love.

4.Not having a proper training session to educate users:

This is one of the most important mistakes that must be avoided. It is an absolute must to reduce the resistance to adoption. Have the internal project leader train the users. Have a user-role-wise training session. Show them how to use a particular module. Give them a trial exercise for that module with key variations to cover the majority of the use cases. Then set the expectations for next week. Repeat the same till you cover all approved workflows. Now you have a team that is ready and equipped to handle your software. 

5.Not using the ERP System to the fullest:

I have seen owners who would want a fancy dashboard with extensive data during the design phase. They would go on and on, saying how it would fix all their problems. But, once the system is implemented, the same entrepreneur does not even look at any of those. If you want your ERP software to help you, you should start using it. 

The best way to use an ERP system is to have function-based review meetings based on key metrics in the ERP. Have the sales team present their sales revenue, pipeline, forecasts, key deals, etc. using the ERP. Having reviews with your ERP Software makes it the key management tool for your organization. Listen to key numbers, probe into them, and question the presenter to understand the data and to let them know what action they can take. Your review meeting should be precise; it should start with the data and end with an action item assigned to a team member. In this way, your managers will put in the effort to make sure that their team has the data ready in the ERP before the review, as it will reflect their performance in the firm. It is the best hack for ERP software implementation. Questioning is the best form of management. Reviewing is the best form of implementation.

If you take these aspects into consideration during the implementation phase of your ERP software, you will reduce the risk , adoption challenges and bring the system live quickly.

About the Author

SN PALANIAPPAN

Alumni, IIM, Bangalore;

Co-Founder,

StratWorks Consulting LLP;

Zoho Implementation Partner.

His consulting firm, StratWorks Consulting LLP, specialises in SME consulting and has been involved in the design and implementation of multiple ERP systems across several industries, including trading, manufacturing, FMCG, food retail, IT, etc. The author can be reached at can be reached at palani@strat-works.com,