Missed deadlines and fragmented workflows are more than inconveniences; they are clear signs that an ERP system is underperforming.
This is not a rare problem. Industry research shows that 50% of ERP implementations fail on the first attempt, and 51% cause operational disruptions when going live, often due to poor adoption and systemic challenges[?].
The good news is that an underperforming ERP can be brought back under control. With careful assessment and targeted action, it’s possible to restore efficiency, accuracy, and the value the system was meant to deliver.
In this article, we’ll explore five warning signs that your ERP isn’t being used to its full potential — and what each one reveals about where improvements may be needed.
5 Critical Signs You’re Not Getting the Full Value from Your ERP
An ERP should replace fragmented tools with a unified system for managing business processes. When that isn’t happening, certain patterns emerge that point to inefficiency, poor adoption, or misalignment between the system and your operations.
Сommon reasons why you may not be able to benefit from the system
1. Your Teams Still Rely on Spreadsheets for Core Processes
In manufacturing and supply chain settings, 67.4% of managers report regular use of spreadsheets for managing critical processes like inventory and planning. When this happens despite having an ERP in place, it’s a strong indicator that the system isn’t being used as intended.[?]
ERP systems are designed to centralize information and provide a single source of truth. If your staff are still building complex spreadsheets to
manage inventory, track budgets, or monitor sales performance, it means critical workflows are bypassing the system.
Spreadsheets introduce several risks — from version control problems to manual entry errors that can snowball into costly decisions. They also create data silos, making it harder for teams to work from consistent, up-to-date information. This reliance often stems from cumbersome ERP workflows or unclear processes, leading employees to default to familiar tools when proper training and system alignment are lacking.
The goal should be to make your ERP the easiest and most reliable option for completing work — so that manual spreadsheets become unnecessary, not essential.
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2. You’re Inputting the Same Data More Than Once
One of the core benefits of an ERP is eliminating duplicate data entry by integrating processes across departments. If your team still has to re-enter the same customer details, order numbers, or financial data in multiple places, it signals that your system’s workflows or integrations aren’t set up correctly.
Businesses that implement ERP systems can reduce duplicate work and wasted time by 63% through centralized data entry and streamlined workflows. When that potential isn’t realized, it’s a sign the ERP is not configured to work as an integrated whole.[?]
This duplication wastes time, increases the likelihood of errors, and delays information from reaching the people who need it. It often points to gaps in system configuration, such as missing connections between the ERP and other platforms like CRM, accounting, or HR software.
Sometimes, outdated procedures carried over from before the ERP was implemented cause issues. If these processes are not reviewed and updated, employees may continue working the old way, which undermines the value of automation.
A properly configured ERP should allow each piece of information to be entered once and flow automatically to all relevant areas — ensuring accuracy while freeing up time for higher-value tasks.
3. Employees Avoid Using the System Altogether
When employees consistently bypass the ERP in favor of legacy tools, personal spreadsheets, or manual processes, it’s a clear warning sign that the system isn’t meeting their needs. This avoidance can stem from several issues — such as a complex interface, insufficient training, slow performance, or mistrust of the data.
Over time, these workarounds lead to inconsistent information, duplicated efforts, and a breakdown in the accuracy of reports. They also make it harder to enforce standardized processes, which undermines the ERP’s role as a single source of truth.
Low adoption rates can also point to deeper cultural or change management problems. If staff don’t understand how the ERP supports their daily work, or if they see it as an administrative burden, they are unlikely to use it consistently.
The more employees rely on systems outside the ERP, the less effective it becomes. Restoring trust in the platform requires identifying the root cause, whether it’s technical, procedural, or related to user experience, and addressing it directly.
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4. Reports Are Always Late or Inaccurate
When reports are consistently delayed or contain errors, it’s a sign that information isn’t flowing correctly through the ERP.
Nearly 50% of businesses implement ERP systems with expectations of achieving ROI, and most succeed, yet persistent reporting issues can still undermine the system’s value.
Common causes include incomplete data entry, poor integration with other business applications, and overly complex reporting processes that require manual intervention. In some cases, reporting structures may not align with the KPIs the business actually tracks, forcing teams to spend extra time compiling figures outside the ERP.
When decision-makers lack access to reliable, up-to-date information, it hinders their ability to respond effectively to operational challenges and strategic opportunities. It can also erode confidence in the system, leading staff to create their own unofficial reports, which further fragments data.
An ERP should make it straightforward to generate reports that are both accurate and timely. If that’s not happening, the underlying processes, integrations, or data governance policies may need to be reviewed and improved.
5. You Keep Buying Add-Ons to Fill Gaps
Relying on extra tools to cover basic functionality often reflects an initial mismatch between the system’s capabilities and the business’s needs.
Research shows a substantial 74.1% of ERP projects exceed their budgets, and the need for frequent add-ons may be one of the reasons.[?]
ERP systems are intended to provide a complete, integrated platform for managing core business functions. If you find yourself repeatedly purchasing add-ons or third-party tools to handle everyday tasks, it may indicate that the ERP’s core features don’t align with operational requirements.
While some specialized extensions can be valuable, overreliance on them can create a patchwork of disconnected tools. This increases complexity, introduces compatibility issues, and often leads to higher long-term costs. It can also make it harder to maintain consistent workflows, as each add-on may have its own interface, update cycle, and data handling rules.
In many cases, this pattern results from the ERP being selected or configured without fully considering long-term growth, industry-specific requirements, or integration strategy. Over time, these gaps accumulate, making the system more difficult to manage and less efficient overall.
A well-planned ERP should minimize the need for constant external fixes, supporting the majority of core processes within its main platform. For example, solutions like FirstBit are designed to cover project management, procurement, finance, HR, and inventory in a single environment, reducing the reliance on separate tools. If that’s not the case, it’s worth reviewing whether the current system is the right fit for the business moving forward.
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How FirstBit ERP Helps You Maximize ERP Efficiency from Day One
To get the most out of an ERP, the setup needs to support efficient processes, reliable data flows, and a user experience that fits how teams actually work. That’s the groundwork FirstBit ERP is designed to provide from day one.
Built-In Customization for Local and Industry-Specific Workflows
One reason many ERP projects struggle is that the system forces teams to adapt to a “one-size-fits-all” workflow. That often leads to workarounds, lost productivity, and poor adoption.
FirstBit ERP is built with configurable workflows that match both local compliance requirements and the realities of industry-specific operations — whether that means BOQ-based cost control in contracting or Wage Protection System (WPS) compliance in payroll. This flexibility means processes can be fine-tuned from day one, reducing the need for later rework.
Project cost analysis in FirstBit ERP
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Real-Time Dashboards and Error-Free Reporting
Decision-making suffers when reports are delayed or riddled with manual errors. With FirstBit ERP, live dashboards show the status of projects, budgets, procurement, inventory, and HR metrics in real time.
Data flows directly from operational entries into reports — cutting out duplicate entries and minimizing human error. Teams can trust the numbers they see and act on them immediately, without waiting for end-of-month reconciliations.
Project tasks pipeline in FirstBit ERP
Smart Integrations That Eliminate Redundant Work
Duplicate data entry is one of the fastest ways to erode ERP efficiency. FirstBit ERP integrates functions like project management, procurement, accounting, HR, and inventory into a single platform. Information entered once, whether it’s a supplier invoice, an employee timesheet, or a goods receipt, automatically updates all relevant areas. This keeps operations moving without the bottlenecks that come from re-keying data in multiple systems.
HR & Payroll module in FirstBit ERP
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Final Thoughts
An ERP’s value comes from how well it supports the way a business operates. Over time, inefficiencies rarely announce themselves; they show up in small, persistent frictions: delays in reporting, duplicate entries, gaps in communication. Left unchecked, these issues can erode both trust in the system and the quality of the decisions it informs.
The strongest results come when ERP usage is treated as an evolving process rather than a one-time setup. Regular reviews, process alignment, and active user engagement ensure the system remains a reliable part of day-to-day operations, capable of adapting as the business changes.
F.A.Q.
What’s the difference between a bad ERP and poor ERP usage?
A bad ERP is one that’s poorly designed, outdated, or lacking the capabilities your business genuinely needs. Poor ERP usage, on the other hand, happens when a capable system isn’t configured, maintained, or used effectively.
Even the best ERP can underperform if processes aren’t aligned, users aren’t trained, or adoption is low.
Can a well-implemented ERP still create delays?
Of course. Even with a smooth rollout, delays can arise if internal processes are inefficient or users don’t follow established workflows.
For example, late data entry, incomplete records, or excessive manual steps can slow down reporting and decision-making, regardless of the system’s quality.
How can we tell if users are bypassing the ERP?
Look for signs like teams keeping offline spreadsheets, using separate software for tasks the ERP should handle, or maintaining “shadow systems” that duplicate data. Inconsistent entries, missing information, and mismatched figures across departments are also red flags that people aren’t working fully in the system.
Is spreadsheet use always a problem after ERP rollout?
Not always. Spreadsheets can still be useful for quick analysis, ad-hoc calculations, or temporary data gathering. It becomes a problem when they replace core ERP functions — like inventory tracking, financial reporting, or order management — because this creates data silos and undermines accuracy.
How often should ERP usage be reviewed?
At least once or twice a year, with more frequent checks for fast-changing businesses. Regular audits, usage analytics, and feedback loops help spot issues early. Reviewing reports on login frequency, module usage, and data quality ensures the system stays aligned with operational needs.
Should end users be involved in ERP decisions?
Yes. Including end users early, whether in requirements gathering, testing, or pilot runs, helps ensure the ERP is practical for daily tasks. Their feedback can highlight workflow challenges you might not see at the management level, and this involvement builds a sense of ownership that supports long-term adoption.
What KPIs indicate effective ERP usage?
Track adoption metrics like login rates and active use of core modules, data quality indicators such as error rates and duplicate entries, and process efficiency measures like order-to-cash or purchase-to-pay cycle times. Reporting speed, how quickly accurate reports can be generated, is also a strong sign that the ERP is performing well.
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Anna Fischer
Construction Content Writer
Anna has background in IT companies and has written numerous articles on technology topics.
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