8 Common ERP Implementation Mistakes (and how to avoid them)

Implementing a new enterprise resource planning (ERP) platform is a complex, time-consuming undertaking. The potential benefits are significant, of course, but there are also many pitfalls that can lead to project failure, cost overruns, and unmet expectations.

“The successful implementation of an enterprise resource planning (ERP) system can transform a business, making its operations more efficient and scalable and better positioning it for growth,” Netsuite’s Lisa Schwarz writes. “The benefits of ERP done right can be felt across an organisation, from finance to shipping logistics, which is why the global ERP market is expected to reach nearly $125 billion by 2030, according to Grand View Research.”

But the all-encompassing nature of ERP systems also means that implementation missteps can have serious implications for every business department, including accounting, inventory, manufacturing, and sales, among others. The good news is that failure is far from inevitable. “To reap the full benefits of an ERP implementation and mitigate the risks of failure,” Schwarz recommends, “it is crucial for businesses to plan, execute, and manage the project with care.”

8 Pitfalls to Avoid

Here are eight common ERP implementation mistakes that SANSA Solutions has seen happen time and time again, and that, as a NetSuite Alliance Partner, can help customers either avoid/or address and work through quickly:

1. No clear vision or objectives for the new software. Companies will often kick off the ERP implementation process without a well-defined strategy, clear goals or measurable objectives. This leads to project scope creep; misalignment between the system and business needs; and difficulty measuring ROI. Set your vision and objectives early in the process and then use key performance indicators (KPIs) to make sure the project stays on track.
   
   
2. Not factoring in the impact and importance of change management. Putting a new system in place is one thing, but getting associates to adopt it, embrace it and use it is a completely different matter. Make the transition smoother by getting users involved early in the process, soliciting their input during the ERP evaluation phase, and keeping them apprised of looming go-live dates and other milestones.
   
   
3. Poor budgeting and cost control. Everyone wants to be able to “do more with less” in the current business conditions, but ERP implementations cost money. Make sure you understand the total cost of ownership (TCO)—software licenses, implementation services, infrastructure upgrades, training, and ongoing maintenance—before jumping in. This will help you avoid budget overruns, funding-related project delays, and other implementation roadblocks.
   
   
4. Underestimating the importance of successful data migration. If you don’t properly cleanse, validate, and transform data, those inconsistencies and inaccuracies will just be transferred into your new system. The best approach is to treat your data like gold before the move; thorough preparation ensures a smooth transition and a trustworthy foundation for future insights.
   
   
5. No executive engagement. Software implementations go smoothly when there is adequate buy-in from the top. This sponsorship is especially critical for ERP implementations, which typically touch every corner of the organisation (i.e., finance, manufacturing, distribution, HR, marketing, etc.). For best results, take the time to secure strong support and active involvement from senior leadership throughout the project lifecycle.
   
   
6. Going it alone or relying solely on the software developer to handle it for you. At some point, you’ll have to choose between using the software vendor’s in-house implementation team or enlist the help of an outside partner like SANSA to extract the biggest benefit from your new ERP.  Leave the software development and innovation up to the vendor but let an experienced, certified partner provide help for both implementing your ERP and taking the system to the next level as your firm grows, scales, and expands.
   
   
7. Too many customisations. There was a time when excessive customisations were just part of the ERP implementation process, but each alteration adds complexity, increases implementation timelines, and can hinder future upgrades, effectively locking you into a potentially outdated version. Instead, embrace the standardised best practices embedded within modern ERPs like NetSuite. And if specific customisations are still needed, SANSA is always ready to help you achieve those goals quickly and efficiently.
   
   
8. Unrealistic timelines. ERP implementations can deliver significant rewards, but successful endeavors can also be complex and time-intensive, especially for larger organisations that need to consolidate multiple legacy systems into one. “It’s important to set realistic timelines for an ERP implementation,” Schwarz cautions, “so that there is sufficient room to manage surprises along the way and project owners, stakeholders, and employees know what is expected of them at different implementation phases.”
   

The good news is that with diligent planning, a proactive approach and a reliable partner in your corner, you can avoid these common pitfalls. Start by establishing a clear vision, prioritising change management, and maintaining budgetary discipline. Don’t forget to ensure data integrity, secure executive buy-in, and choose a partner like SANSA Solutions who has a proven track record of successful NetSuite. We’ll help you flip a potentially daunting undertaking into a strategic advantage, paving the way for enhanced efficiency, scalability and sustained growth across the entire enterprise.

Contact us.