Why Do Companies Go Back to Excel After ERP Implementation?

When a company decides to implement ERP, one of the main goals is to reduce reliance on manual processes. A designed ERP system can integrate various business functions such as finance, inventory, procurement, and operations into a single centralized platform.

With an ERP system in place, companies hope that all recording and reporting processes will no longer depend on spreadsheets.

However, in practice, the phenomenon of using Excel after ERP implementation is still quite common in many companies. Operational teams continue to use spreadsheets to record data, create additional reports, and even manage processes that have not been fully handled by the system.

This does not mean that the ERP is not working, but rather indicates a gap between the implemented system and the actual operational execution of the company.

ERP Does Not Always Replace Work Processes

ERP is indeed designed to support and simplify complex business processes into an integrated workflow. However, each company has a different operational structure.

In some situations, the implemented system cannot yet fully adapt to the company's internal workflow. When this happens, operational teams usually look for alternative ways that they find easiest to keep doing their jobs.

Spreadsheets are often a quick solution because they are flexible and easy to use by various divisions.

This phenomenon shows that ERP cannot be understood merely as a technology system, but also as a part of the company's workflow. Thus, ERP is able to explain how the ERP system plays a role in regulating various business processes within the organization.

Reporting Still Requires Spreadsheets

One of the reasons why Excel is still used after ERP implementation is the need for more flexible data analysis, such as creating PIVOT tables.

Although ERP has reporting features, some companies require more specific analysis formats for management or operational needs.

Under these conditions, data from the ERP system is usually exported first, then re-processed using spreadsheets to create more detailed reports or those tailored to internal needs.

This practice is quite common, especially when companies have not fully optimized the capabilities of their ERP system.

System Workflow Does Not Fully Follow Operations

Every company has unique operational policies, ranging from approval workflows to inter-divisional reporting structures.

If the ERP system used does not fully follow that workflow, the operational team will usually create additional processes outside the system to suit their needs.

In many cases, spreadsheets are used to complement processes that are not yet covered by the system.

This situation highlights the importance of ensuring that the ERP truly adapts to the business needs. Otherwise, a system that is supposed to help operations might instead create inefficient additional processes.

Lack of System Management After Implementation

The phenomenon of using Excel after ERP implementation also often occurs when companies do not have a system management strategy after the implementation stage is complete.

Once the system is up and running, many companies assume the ERP project is finished. In practice, however, the system typically requires various continuous adjustments to keep up with the company's operational developments.

Without ongoing support, ERP can become a system that is less flexible to business changes. This condition also explains that an actively unmanaged system can lose its relevance in company operations.

Conclusion

The phenomenon of using Excel after ERP implementation frequently occurs, showing that the success of ERP does not only depend on the initial implementation process.

The implemented system needs to be continuously adapted to the company's operational needs so that it can be optimally utilized by the entire internal team.

If you want to understand more about the ERP Enablement-as-a-Service approach in your company, TiLabs is open for further discussion. Book a free demo now.

Initial discussions can be conducted directly via WhatsApp to explore the system needs and ERP strategies most relevant to your company.