NetSuite is a popular Enterprise Resource Planning (ERP) system with many benefits, including reliability, scalability, and extensive integrations. Small and mid-sized businesses find NetSuite the most suitable ERP for their requirements. Nonetheless, companies must implement the ERP system effectively to enjoy NetSuite’s benefits fully. It is therefore crucial to identify and address any potential challenges before implementation to optimize final results.
What are the most common challenges during NetSuite ERP implementation? How can businesses overcome them effectively? And which experts are best equipped to assist? This blog delves into these questions, offering actionable insights to address these issues successfully.
The Eight Most Common NetSuite ERP System Implementation Challenges
Each business will have unique challenges when implementing NetSuite to manage their operations. However, below are the most common challenges that typically arise:
Challenge #1: Complex Project Management
NetSuite implementation is a lengthy process with many stages, including planning, deployment, design, and development. Extra phases like continuous support and post-implementation updates further extend the process.
The number of departments working together adds to the complexity of the overall process. However, each department has its responsibilities and requirements. Considering each department and team’s needs and harmonizing their expectations can make implementing the system challenging and complex.
Challenge #2: Data Integrity Challenges
Poor data quality and accuracy are other challenges businesses face with NetSuite implementation. Businesses use ERP data to make decisions about customers, products, and operations. Unclear, unreliable, and outdated data makes decision-making harder and negatively impacts customer satisfaction and employee efficiency.
Hence, it is vital to ensure systems are in place to ensure the accuracy and reliability of data.
Challenge #3: Task Automation Problems
Often, businesses add inventory data to the ERP manually. This can make inventory management difficult, as human data entry may cause inaccuracies and omissions.
Many businesses have employees who spend too much time on repetitive and mundane tasks, such as data entry, which reduces business efficiency. According to a report conducted by SmartSheet in 2017, around 40% of workers spend at least a quarter of their week on these manual tasks.
Businesses can use NetSuite ERP to automate these tasks and address this issue effectively.
Challenge #4: Difficulties with Change Adoption Strategies
As businesses implement changes in technology and policies, employees often resist them. This is especially true if they have been using another ERP for a long time.
Building employee confidence in a new ERP system will take some time, with an adjustment period, to become familiar and comfortable with the latest ERP and its features. Confidence and ease of use are not always immediate. However, NetSuite is designed to provide a consistent and user-friendly experience, which can help ease the transition. Time and proper support will help employees fully embrace the system’s advantages.
Consider building a change adoption and management strategy with the help of Oracle Netsuite partners to assess employee concerns and develop a solution that works for all.
Challenge #5: Changes in Processes, Procedures, and Responsibilities
Implementing cloud-based ERP software like NetSuite is a chance to review and improve company workflows by identifying inefficiencies and redundancies in the old system. NetSuite implementation will help to reassess current roles and responsibilities.
Successful implementation of NetSuite requires the support and cooperation of all employees, who must be included in the entire process.
An ERP system reduces costs, removes obstacles, and simplifies employees’ tasks. Proper communication with employees is required for their full support. Ask various teams to locate areas needing change and work to implement their suggestions.
Challenge #6: Creating Skill Development Initiatives
After implementing NetSuite, the next step is to train all employees to use the ERP effectively. Proper training is required to reduce inefficiencies and maximize productivity.
Analyze the critical areas for training and create a training strategy based on the findings. Addressing any skill gaps will enable businesses to best benefit from NetSuite quickly.
Challenge #7: Setting Unrealistic Expectations of the ERP
Setting unrealistic expectations for a new ERP system is a significant challenge for many businesses. A company must set realistic expectations for what NetSuite can and cannot accomplish. Avoiding to do so will lead to future issues such as team dissatisfaction. Although NetSuite is a powerful ERP with many benefits, it cannot instantly drive perfect results.
Educate the team about what to expect from the system. Explain the implementation process, goals, timelines, benefits, and any challenges.
When a team understands more about the system and what to expect, they will be more willing to learn and adapt to the new system.
Challenge #8: Miscommunication with the NetSuite Implementation Team
Small or mid-sized businesses may not have an in-house trained team to implement NetSuite and must therefore hire a digital transformation consultant. Establishing clear communication paths with the team is vital to avoid ambiguity.
Consider several elements, from employee resistance to technical changes to upskilling employees. Open and transparent communication helps address any issues.
Failing to streamline communication will result in the business suffering from inefficiency and a dissatisfied workforce.
Addressing NetSuite Implementation Challenges: Five Tips to Follow
How can businesses best address these common challenges to benefit from implementing NetSuite?
Below are the most effective ways to reduce or avoid these common challenges with NetSuite implementation:
1. Proper Implementation Planning
A well-defined project plan is essential. Outline objectives, timelines, and responsibilities. Involve the stakeholders to align the goals with business needs. This reduces the risk of scope creep, which can lead to delays and budget overruns.
2. Effective Change Management
Resistance to change can derail implementation efforts. Hence, develop a comprehensive change management strategy that includes training, communication, and user involvement. Engage the team early to avoid concerns and ensure a smooth transition to NetSuite.
3. Create a Reliable Data Migration Strategy
Data quality issues are common during migration, leading to inconsistencies and errors later. To avoid these issues, create a data migration plan that includes data cleansing, mapping, and validation. The strategy ensures that the data transferred is relevant and accurate, leading to minimal disruptions.
4. Offer User Training and Support
Insufficient training will result in low user adoption rates and frequent errors. Ongoing training tailored to different user roles helps a team to use NetSuite effectively. Offer training and upskilling programs to maintain user confidence and engagement.
5. Choose the Right Implementation Partner
It is impossible to successfully implement NetSuite without proper NetSuite ERP implementation. Hence, select an experienced implementation partner. A knowledgeable partner will help avoid common pitfalls such as over-customization or misconfiguration, and their expertise will immensely enhance the implementation experience.
Challenges with NetSuite implementation are common without proper advance planning of the entire implementation process. Change adoption, data migration, task automation, etc., can arise without a suitable NetSuite implementation strategy. However, companies can successfully avoid these challenges with the right approach and implementation preparation.
Working with an Oracle Cloud ERP implementation agency like Big Bang 360 is a top recommendation for a successful implementation strategy.
With years of experience helping diverse businesses with digital transformation, Big Bang 360 has become a go-to partner for NetSuite implementation. Using intelligent strategies, top-notch technologies, and NetSuite professionals, Big Bang 360 ensures successful NetSuite implementation.