What are the common ERP customization and configuration pitfalls to avoid?

Common ERP Customization Pitfalls: #Over-Customization Risks -Loss of standardization -Increased costs -Vendor lock-in -Simplify processes to fit the ERP, not vice versa. -Avoid unnecessary complexity. -The ERP as a Tailored Suit: Customize strategically, not excessively. -Ignoring best practices: Adhere to industry standards for efficiency. -Insufficient planning: Conduct thorough analysis before implementation. -Resistance to change: Embrace necessary process adjustments. -Underestimating complexity: Recognize the scope of the project. -Lack of user involvement: Ensure end-user input throughout the process. -Training and Engagement: Remind users of the ERP's value and provide adequate training.

I very much agree with this recommendation. There can be the tendency, especially from the Business, to want to simply replicate their current ERP system. But if you chose your vendor carefully, their ERP solution will do everything you need it to. One additional Issue with Customization is the need to re-Customize, re-test, re-document and re-train every time there is a software update.

This is unavoidable as ERP is visualised by Users, Management, Vendors, & Consultants VERY differently. Involving the key decision makers from design phase. Clear & thorough blue print can help to some extent. Agile approach with quick cycles as suggested by other authors is also a robust method.

Scope creep is a fact of life when it comes to software development; and most types of projects. The best way to mitigate all the impacts listed above (costs, delays, errors, frustration, etc.) is to take an Agile approach. Short interval sprints will allow all stakeholders to continually pivot and find the optimal path to completion.

Poor data quality can be the silent killer of ERP and other software systems. There is no 'one size fits all' solution to this. Therefore it is best to include data in all project assessments. And then assign appropriate resources to the project team who are responsible for the data strategy.

Change resistance is quite detrimental to successful implementation. We find that involving users from design stage and having multiple rounds of mock runs/training can help. Compulsory refresher sessions during first few years is also very helpful.

Taking an Agile approach to the software configuration will go a long way to mitigating this issue. Not unlike Data Quality, this element can sink even the best technical solutions. It is therefore critical to include Change Management in all initial project assessments. And then assign appropriate resources to create and execute an effective Change Management strategy.

At the risk of sounding like a broken record, adopting an Agile approach to software configuration will vastly minimize the impact of this key element. As with data quality and change management, it is essential to include Testing and Evaluation in all project assessments. And to assign appropriate resources to be responsible for creating and executing an effective Test strategy.

This paragraph says it all. The only thing I will add is to ensure that the cost of this key element is part of the initial project assessment and Business Plan. All too often the Return on Investment focuses on the initial costs of the ERP implementation. But does not take into account the ongoing costs to maintain the system over the forecasted lifespan.