Over 50% of ERP implementations either exceed their budgets, miss deadlines, or fall short of expected outcomes. For mid-market companies, the consequences are magnified: limited budgets, lean teams, and high expectations mean a single misstep can stall growth or drain resources. Too often, failure stems not from poor software, but from mismatched planning, unclear priorities, or an overreliance on legacy systems that no longer scale.
Technology leaders face pressure to deliver enterprise resource planning (ERP) systems that support business strategy without overextending internal capacity. However, key factors—total cost of ownership, staff readiness, data integrity, and system integration—are frequently underestimated. This article outlines four common ERP implementations challenges and offers practical strategies to help avoid missteps and make measurable progress.
Mid-market companies may experience several obstacles when adopting a new ERP system. If not managed properly, these challenges can impact a business's overall performance and growth. Understanding these issues is the first step in planning effective ERP implementations.
High Upfront Investment: The Realities of Starting Big
Mid-market ERP projects typically demand a substantial initial cost, including software licenses, hardware, and the human resources to configure and deploy the system. These investments can strain budgets, especially when faced with competing priorities such as marketing, product development, or new market expansions. For many mid-market companies, every dollar counts, and large upfront expenses can direct funds away from essential operational areas.
Adding to the challenge is the complexity of forecasting a realistic budget. Many organizations underestimate the cost of ERP because they focus on licensing but overlook user training, data migration, and any specialized add-ons that address unique business needs. When these overlooked costs arise, they can impede day-to-day operations and force CFOs to reallocate resources immediately.
Ongoing Maintenance and Upgrade Costs: The Cost That Keeps On Coming
Beyond the initial investment, mid-market companies often incur continual fees tied to upgrades, technical support, and even custom enhancements. Traditional ERP implementations may need on-premise infrastructure, which calls for regular server upkeep and software patches. While these updates keep the system current, they also demand consistent funding and resources.
Furthermore, the evolving nature of business means that new requirements can emerge over time. Whether it’s a fresh regulatory environment or a shift in customer expectations, ERP software modifications might be needed, thereby increasing costs. In many cases, mid-market businesses feel they’re in a never-ending cycle of expense. Without forward planning, they can face financial strain that disrupts core operations.
Frequent Upgrades: When They Interrupt Your Day
ERP vendors usually release version updates that promise better features, security patches, and performance enhancements. However, adopting these upgrades can sometimes lead to disruptive re-implementations. Mid-market organizations with smaller IT teams may find themselves stretched thin when balancing day-to-day tasks against the technical demands of new software versions. If the upgrade is postponed or skipped due to resource constraints, companies risk operating on outdated software, opening the door to security vulnerabilities or inefficiencies.
Downtime during these upgrade windows is another concern. For mid-market companies, every hour spent offline can translate into lost sales or diminished customer satisfaction. This pressure makes them wary of frequent transitions, prompting some to cling to aging systems longer than they should.
Disconnected Data: The Integration Challenge
When organizations rely on multiple applications—for instance, separate software for finance, customer relationship management (CRM), and supply chain—data silos tend to form. These silos obstruct the flow of real-time information, making it hard to gain a holistic view of operations. Teams might resort to manually importing spreadsheets between departments, which increases the chance of errors and slows decision-making.
Integration challenges escalate when businesses operate across time zones or have geographically dispersed offices. Implementing ERP software that merges all these data sources is paramount in such scenarios. However, the integration process itself can be tricky, requiring specialized development efforts and rigorous testing to ensure data is reliably shared across systems.
Outdated Systems: When Spreadsheets Just Don’t Cut It
Spreadsheets and legacy systems still play a major role in many mid-sized businesses. Given the minimal training and sense of control spreadsheets offer, staff members may be comfortable with familiar platforms. Unfortunately, these tools often become unwieldy as data volumes expand. Manual data entry, version control errors, and limited collaboration features can hamper operational insights.
Over time, organizations that cling to spreadsheets for core functions risk stifling innovation. New ERP systems promise automation, analytics, and advanced reporting that outstrip what simple spreadsheet solutions can provide. Yet, transitioning from these familiar tools to a modern ERP demands an upfront cultural shift and learning curve, which can spark organizational resistance.
Employee Pushback on New Systems: Easing Fears and Building Trust
Introducing a new ERP system frequently makes employees wonder how it will alter their daily responsibilities. Without proper training and communication, staff may become apprehensive or resentful. Even if the technology itself is advantageous, the perception of sudden change can create friction.
Overcoming this resistance involves demonstrating the ERP system's practical benefits. For instance, showing employees how automation can reduce mundane tasks helps them appreciate the value. Mid-market businesses with limited resources must handle these transitions carefully, balancing the urgency of modernization with the need for buy-in at every level of the organization.
Limited Internal Expertise: When a Lean IT Team Can’t Do It All
Mid-market businesses typically have lean IT departments. A new ERP solution may introduce complexities in database management, security patches, integration, and ongoing maintenance that go beyond the capacity of these teams. In-house staff might lack specialized knowledge of the best ERP platforms like Acumatica, Microsoft Dynamics 365 Business Central, or NetSuite.
As a result, these companies face a choice: retrain existing staff, hire specialists, or outsource tasks to consultants. Each option carries unique costs and operational considerations. Without adequate expertise, organizations can misconfigure their ERP, hamper performance, or face compliance risks—particularly if they store sensitive financial data and rely heavily on robust data security.
Misconceptions About ERP Being Only for Large Enterprises: Debunking the Myth
A lingering myth suggests that ERP solutions are exclusive to multinational corporations. Many mid-market businesses feel they don’t need comprehensive ERP software or fear the cost will quickly balloon beyond their comfort zone. This mindset can lead to postponing investments, only to realize later that the organization has outgrown its patchwork of legacy systems and spreadsheets.
In reality, the ERP market has opened up significantly, offering cost-effective packages, scalable pricing models, and cloud-based ERP systems specifically targeting mid-sized businesses. Delaying these tools can mean losing out on large enterprises' advantages—such as increased operational visibility and robust process automation—but on a scale suited to a mid-market budget.
Balancing Standard Functions with Specific Needs: How Much Customization Is Enough?
When implementing an ERP system, mid-market companies often face a balancing act between adopting core functionalities “out of the box” and tailoring the software to their unique processes. Over-customization might solve immediate workflow challenges but can generate technical debt—particularly when upgrades render custom modules incompatible or expensive to maintain.
Standard features in major ERP platforms can usually effectively handle most business processes. However, certain departments or functions may have specialized requirements based on industry verticals or regulatory environments. Pinpointing exactly when a customization is necessary versus simply representing a preference is essential to keeping implementations timelines and costs under control.
Managing Customization Requests: Staying Organized and On Budget
Even when an organization opts for a standard ERP package, teams often request customizations as they become familiar with the system. Without a clear vetting process, these demands can flood the project managers and ERP consultants, causing them to juggle last-minute changes that disrupt schedules and budgets.
A structured approach—perhaps via an internal steering committee—helps filter customization requests. This approach ensures that only changes that deliver measurable impact move forward. Recognizing that every tweak has ripple effects on timelines, testing, and future upgrades helps mid-market companies maintain discipline while still accommodating genuine needs.
Challenges with Data Migration and System Integration: Getting Your Info in Order
A new ERP system must properly incorporate historical records, transaction data, and customer information. Migrating this data from outdated systems can be complicated. Differences in data formats, incomplete fields, or inconsistent naming conventions add layers of complexity. The stakes are high: inaccurate data in a new ERP can cause confusion, hamper analytics, and reduce trust in the system.
Integration also matters. Many organizations rely on specialized software, such as CRM platforms or accounting software, for specific tasks. Ensuring these systems communicate effectively with a comprehensive ERP can be tricky. Mismatched APIs, out-of-date interfaces, or conflicting data structures make integration challenging, demanding thorough planning and possibly professional services to streamline the process.
Mid-market businesses can overcome many of the hurdles mentioned above by taking a structured, proactive approach. The four strategies outlined below offer a clear roadmap to help organizations keep costs in check, maintain data integrity, manage change effectively, and strengthen their ERP expertise for long-term success.
Consider Cloud-Based ERP Systems
Transitioning to a cloud ERP solution like Acumatica Cloud ERP or NetSuite can significantly reduce infrastructure expenses. A SaaS ERP model often includes automatic upgrades and maintenance in the subscription fee, minimizing the need for heavy on-site equipment or dedicated staff for patching and support. Moreover, monthly or annual subscription pricing helps mid-market companies allocate budget more predictably.
Cloud-based ERP systems also allow flexibility in scaling up or down depending on business demands. This approach is particularly helpful for industries with seasonal fluctuations or rapidly evolving product lines. The cost structure is transparent, and the software stays current without repeatedly pulling the IT team away from other priorities.
Evaluate Total Cost of Ownership (TCO) Early
Taking a narrow view of ERP costs can lead to unpleasant financial surprises. A robust analysis of the total cost of ownership should include licensing fees, customization costs, employee training, implementations services, and potential expenses tied to system support. Replacing outdated systems may require a major data-cleaning initiative or integration with third-party tools. Companies often discover they must bolster security measures or undergo additional audits to maintain compliance, further adding to TCO.
Engaging an ERP consultant to draft a thorough cost breakdown can help prevent budget overruns. It fosters a realistic picture of the financial path ahead, enabling management to plan for contingencies or phase certain modules over time. Clarity about TCO fosters better communication between departments and cements stakeholder buy-in.
Centralize Data for Better Accuracy and Access
Maintaining multiple data silos across the organization stifles collaboration. A unified ERP system becomes the single source of truth, consolidating information from supply chain management, CRM, financial processes, and other functions. This centralized approach streamlines reporting and analytics, giving decision-makers timely and accurate insights.
Centralization also eases compliance. Many mid-market companies need to satisfy industry-specific regulations or internal corporate governance. When data is scattered, verifying compliance becomes tedious. With centralized records, audits, and data security assessments are more straightforward.
Leverage Phased Approach to Upgrades and Integration
A big-bang rollout might be too disruptive, particularly for mid-market businesses. Instead, a phased approach to ERP implementations or integration allows teams to adopt new functionalities gradually. Starting with core modules (e.g., financials, order management) and moving to more specialized features over time spreads out costs and training requirements. This approach also lessens operational risk if a specific phase needs to be fine-tuned before full deployment.
The phased method also supports incremental testing. Departments can highlight unforeseen issues, such as data conflicts or user-interface challenges, which can be addressed before the next stage. While some organizations fear the drawn-out timeline, the gradual approach often leads to smoother adoption and more effective utilization of the ERP system.
Offer Clear Training and Communication
Employees must know how the ERP software will affect their roles and responsibilities. Early and transparent communication alleviates anxiety and replaces uncertainty with understanding. A series of training workshops, supplemented by accessible documentation or short e-learning modules, can cultivate confidence among staff.
Emphasizing the benefits of automation, real-time data sharing, and integrated workflows helps employees see the upside of change. Tailoring training to specific roles—sales, finance, operations—ensures each team knows precisely what to expect. Additionally, anticipating questions and concerns is wise. Quick responses to these issues show the leadership’s commitment to a supportive transition.
Involve Key Staff Early
Identifying and involving champions from each department at the project’s onset can dramatically reduce organizational friction. These influencers become advocates, guiding their teams and sharing feedback during the early stages. Their input can also refine the ERP’s design, ensuring that customization requests are practical and align with company-wide objectives.
Moreover, this strategy fosters a sense of ownership. When staff realize their perspectives shape the new system, they are more inclined to adopt it wholeheartedly. While smaller IT teams may not have the capacity to consult every employee, focusing on key departments—accounting, sales, and production—can bridge knowledge gaps and encourage a more cohesive rollout.
Consulting with Mid-Market ERP Specialists
Bringing in advisors who understand the mid-market segment can have a major positive impact. They offer best practices, share insights from past implementations, and know how to tailor the software to fit your specific needs. Consultants proficient in platforms like Microsoft Dynamics 365 Business Central, NetSuite, or Acumatica Cloud ERP can also optimize integrations and customizations, sparing you the stress of trial and error.
Avoiding Costly Mistakes
While hiring consultants represents an extra expense, skipping professional guidance can lead to bigger financial issues later. A poorly configured ERP can result in costly fixes, missed opportunities, and lower user adoption. Experienced specialists help you “measure twice and cut once,” ensuring smoother deployment and reduced risk overall.
Unresolved ERP challenges can stunt the progress of many mid-market organizations. Delaying a new ERP investment or clinging to outdated systems hinders efficiency and often makes adapting to shifting market dynamics harder. A proactive strategy sets the foundation for success. Leaders should evaluate specific needs during planning, form a realistic timeline, and engage with knowledgeable partners. The commitment to robust software and thorough change management pays off by optimizing supply chain, finance, and customer support workflows.
In fact, an Aberdeen Group study found that companies integrating CRM with ERP saw a 20% increase in operational efficiency. These gains underscore the financial and competitive advantages of a well-implemented ERP system. When mid-market organizations embrace comprehensive adoption, they foster better cross-departmental collaboration, enhance data-driven decision-making, and drive higher ROI.
ERP doesn’t have to disrupt your business to transform it. For small businesses to mid-sized companies, the difference lies in how the project is approached—from clear budgeting and internal alignment to realistic timelines and smart resource planning. When these pieces come together, ERP becomes a foundation for growth, efficiency, and better decisions at every level.
RubinBrown partners with mid-market teams to lead ERP projects that work in the real world, not just on paper. We help you plan with precision, streamline implementations, and avoid the common pitfalls that derail ROI. If you're ready to move forward with confidence and see measurable results, schedule a consultation with us today.