75% of ERP implementations fail to meet their objectives. Companies waste millions on poorly executed migrations. When off-the-shelf solutions fall short, customized ERP software can be an effective way to transform your operations.
But how to avoid common pitfalls during the migration and onward? Let’s figure it out.
Digging Deep: What Does Your Business Really Need?
Your current ERP might feel like a pair of shoes that never quite fit right. Before jumping into migration, you need to understand exactly where the pain points are.
Start by tracking which tasks take too long. At one manufacturing client, we discovered employees spent 4+ hours daily just reconciling inventory data between systems – that’s half their workday!
Effective assessment involves:
- Process mapping: Document your workflows as they actually happen, not as they’re supposed to happen.
- Pain point identification: Ask specific questions like “What tasks take the longest?” and “Where do you need to use spreadsheets outside the system?”
- Cross-department interviews: IT alone can’t identify all issues. When we interviewed accounting at a distribution company, they revealed critical tax calculation needs that operations weren’t aware of.
Pro tip: Create a “day in the life” document for each role that interacts with your ERP. This reveals interdependencies that standard requirement gathering misses.
People First, Technology Second – Building Your Migration Team
ERP migrations fail because of people, not technology. Your dream team needs more than just technical experts.
A successful migration team includes:
- Executive sponsor: Someone with budget authority who can remove organizational roadblocks.
- Process owners: Representatives from each affected department.
- Change champions: Respected team members who will drive adoption.
- Technical leads: Both internal IT and implementation partners.
For mid-sized companies, custom ERP migrations typically take 9-18 months. Our fastest successful implementation was 7 months for a 50-person company with minimal customization.
Hidden budget killers to plan for:
- Temporary staff: You’ll need resources to maintain operations during the transition.
- Data cleansing: Can consume up to 30% of the project budget.
- Post-go-live support: Plan for 3-6 months of intensive support.
Data Migration (Where ERP Dreams Go to Die)
Bad data migration kills projects faster than any other factor. One healthcare client discovered this when patient billing information was transferred incorrectly, resulting in $2.3M of improperly billed services.
Your data migration strategy needs:
- Data audit: Before touching anything, know what you have. Run reports to identify duplicate records, incomplete fields, and inconsistent formats.
- Mapping workshop: Get business users and technical staff in one room to create explicit mapping rules. Document edge cases and exceptions.
- Transformation rules: Define how data converts between systems. Example: If the old system stores names as “SMITH, JOHN” but the new one needs “John Smith,” document this conversion rule.
- Test migrations: Run at least three test migrations before go-live:
- Initial test with sample data (10%)
- Validation test with a larger dataset (30-50%)
- Full dress rehearsal with complete dataset
Real-world time saver: Create a data cleanup team 3-4 months before migration. I’ve seen this reduce migration errors by up to 60%.
Custom vs. Configured
Not everything needs custom code. The best implementations blend configuration and customization intelligently.
Smart customization approach:
- Configuration-first mindset: If the base system can do it with settings, don’t code it.
- Customization criteria: Only build custom features when they:
- Provide competitive advantage;
- Support unique processes that differentiate your business;
- Cannot be reasonably accomplished through configuration.
Development approach matters:
- Agile development: Short sprints with working deliverables every 2-3 weeks.
- User story workshops: Technical and business teams collaborate on detailed requirements.
- API-first architecture: Build for future integration from day one.
Future-proofing tactics:
- Modular design: Build custom features as independent modules;
- Documentation discipline: Require inline code comments and architecture diagrams;
- Version control: Use proper branching strategies and tag releases;
- Test automation: Create automated test suites for custom components.
The Human Side of ERP Change
People don’t resist change – they resist being changed.
User experience strategies that work:
- Role-based interfaces: Design screens for specific jobs, not generic “modules”.
- Workflow mapping: Match system steps to existing processes where possible.
- Visual consistency: Maintain design patterns between custom and core features.
Training approaches for maximum retention:
- Just-in-time learning: Train users 2-3 weeks before they need skills, not months before;
- Scenario-based sessions: Practice real work tasks, not abstract system functions;
- Microlearning videos: Create 3-5 minute videos for specific processes;
- Champions program: Train power users first, then have them assist peers.
Resistance management playbook:
- Identify resistance early: Use surveys to spot potential adoption issues;
- Address the “WIIFM” factor: Show users “what’s in it for me”;
- Create feedback loops: Give users channels to report issues and see responses.
Making Your Systems Talk to Each Other
Your ERP doesn’t exist in isolation. The financial services firm I collaborated with discovered this when their custom ERP couldn’t talk to their CRM. It created duplicate data entries that erased 40% of their efficiency gains.
Integration must-haves:
- Integration inventory: Document all systems that need to connect with your ERP;
- Data flow mapping: Define which system “owns” each data type;
- Real-time vs. batch decisions: Not everything needs real-time integration;
- API governance: Create standards for API design and documentation.
Performance considerations:
- Load testing: Simulate peak transaction volumes before go-live;
- Monitoring setup: Implement alerts for integration failures;
- Throttling policies: Prevent any single integration from overwhelming the system.
Your Go-Live Flight Plan
A smooth go-live requires obsessive testing and a detailed deployment strategy.
Testing must-covers:
- Business process testing: End-to-end testing of complete workflows.
- Integration testing: Verify all systems communicate correctly.
- Performance testing: Ensure the system performs under the expected load.
- User acceptance testing: Have actual users validate the system.
Deployment options:
- Big bang: Everything goes live simultaneously (highest risk, fastest ROI);
- Phased rollout: Implement by module or business unit (lower risk, slower ROI);
- Parallel run: Run both systems simultaneously (lowest risk, highest cost).
Go-live readiness checklist:
- Backup procedures verified;
- The support team trained and scheduled;
- War room established;
- Communication plan distributed;
- Rollback procedures documented and tested.
Turning Your ERP into a Competitive Edge
Your go-live isn’t the finish line – it’s the starting point. Companies that treat ERP as an ongoing initiative see 22% higher ROI than those that consider it a one-time project.
Success metrics to track:
- Process efficiency: Measure time savings for key processes (e.g., order-to-cash cycle);
- Error reduction: Track decrease in data errors and rework.
- User adoption: Monitor system usage and feature utilization.
- Business outcomes: Connect ERP performance to business KPIs.
Continuous improvement framework:
- Quarterly Review: Assess system performance and user feedback.
- Enhancement roadmap: Prioritize improvements based on business impact.
- User feedback program: Create formal channels for suggestions for improvement.
- Skill development: Continue training to unlock advanced features.
Remember: The best ERP implementations aren’t the ones with the most features – they’re the ones that best support your unique business processes while adapting to your changing needs.
