IT GovernanceIT Health Check

13 Common ERP Mistakes and How to Avoid Making Them

Enterprise resource planning (ERP) can streamline how work flows and slim down costs, but it can also cost millions and leave your company wrecked if not planned correctly.  In this CIO.com post, Jennifer Lonoff Schiff lists 13 mistakes that can spin your effort at ERP into a quagmire of lost money, lost time, and lost progress. Perhaps one of the most underappreciated considerations discussed comes at the end: “Customers not conducting preventative maintenance are not taking full advantage of their ERP investment and their maintenance dollars,” states Marco Valencia, vice president, Upgrade Office, North America & Latin America, SAP America, Inc. “By not applying maintenance, their systems will quickly become obsolete (from a technical perspective) as will their business processes.” Moreover, he says, it is important to “keep the kernel up-to-date, with the right legal changes applied to prevent potential problems,” and with improvements in installation technology, customers now experience only limited disruption when implementing support packs. Other mistakes include poor planning (of course), not vetting ERP vendors correctly, failing to completely understand or use key features, and underestimating the time and resources required. ERP can take a lot to implement, but making that investment is worth the effort, if your organization is up to the task.

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