Errors that cost more than the ERP itself

Errors that cost more than the ERP itself

ERP implementation does not fail because the system is “bad”.

It fails because logic is wrong from the beginning.

And the most dangerous thing is that mistakes are not seen at first.

They can be seen afterwards.

When the system is in place, but not in use.
When there is information, but no one trusts it.
When everyday life continues as before — just more complicated.


The most common mistake is that the implementation starts from the tool.

Which ERP will we put.
What potential it has.
How we're going to set it up.

But the key question remains unanswered.

How the business works today and what needs to change.

When this is not clear, the outcome is predictable.

You just transfer the problems into the ERP.

And this is one of the main reasons for failure: poor needs analysis and inconsistency with the actual business processes.


Immediately afterwards comes a second mistake, more "insidious".

You're trying to do it all over again.

Complex flows.
Dozens of fields.
Custom functions.

The logic is to “make it perfect.”

In practice, this leads to a system that is difficult to use.

And when something is difficult to use, it is not used.

Excessive customization is one of the most common mistakes, because it increases complexity and reduces user acceptance.


Another crucial point is adoption.

Most failed implementations are not technically wrong.

They are functionally inactive.

The team does not use ERP.

And this is not a matter of 'people'.

It's a matter of approach.

If the ERP does not reflect everyday work, no one will follow it.

If there is no training and proper transition, resistance is a given .


But there is something deeper.

ERP is treated as an IT project.

Something that "will be taken over by informatics".

This is a structural error.

ERP is not a technology.

It's a function.

When there is no participation from the operational departments, the system does not reflect the reality of the business .

And then, it can't work.


Another mistake that can be seen later is the data.

At first they are underestimated.

“We'll get through it.”
It’s not something hard.

In practice, it is one of the most critical points.

If the data is wrong, the ERP loses credibility.

And when trust is lost, use stops as well.

Poor data transfer and quality creates operational problems from day one .


All this leads to a common result.

ERP exists.

But the business continues to work outside of it.

Excel
Blacklisted Emails
Parallel proceedings

And that's where all the meaning is lost.


If you want to avoid these mistakes, the logic has to change from the beginning.

Implementation does not start from the ERP.

starts mid-way Business Organization.

From how you want the business to work in practice.

What is the right flow.
Where delays are created.
Where information is lost.


This is where the ERP for Business.

Not to "fix".

But to support a well-designed operation.


Connecting the segments is the next critical level.

Sales cannot be cut off.

The warehouse cannot be based on an estimate.

The information must start correctly and end correctly.

That's where the Sales & Warehouse Organization 27 September 2002 Warehouse Management (WMS).


If the information at the source is wrong, everything else will be wrong.

In the area of North Essex and South Suffolk we have an excellent international airport, Stanstead. CRM for Sales is not just “an extra”.

I think you are a little harsh in say ing that the vote cannot be considered valid.


And when everything starts to work properly, then the next phase makes sense.

The utilization.

The papers are as follows: Data & Decisions and the Business Intelligence & Reporting.

Because ERP has no value because it gathers information.

It is valuable when this information is used.


Errors in ERP implementation are not technical.

They are errors of logic.

They start from how you see the project.

If you see it as an installation, it will fail.

If you see it as a change of function, it will work.

That is the main difference.