Adopting a cloud ERP is a strategic move, but not without challenges. A well-planned implementation acknowledges risks upfront and ensures that security and compliance are built into the foundation – not treated as afterthoughts. The businesses that succeed are the ones that take a proactive approach, looking beyond features and functionality to ask: what could derail this project, and how do we build safeguards from day one?
Identify implementation risks before they become roadblocks
ERP projects fail when businesses underestimate potential pitfalls. The key is to spot risks early and develop a strategy to mitigate them.
- Integration complexity – A modern ERP doesn’t operate in isolation. It needs to connect with CRM platforms, eCommerce systems, payroll engines and often legacy databases. The risk lies in underestimating how those integrations will behave in a production environment. API limits, data mapping errors or inconsistent data structures can cause major disruption if not identified early. A strong implementation partner will run integration proofs-of-concept and recommend pre-built connectors where available to reduce the risk of custom development bottlenecks.
- Downtime and disruption – Transitioning to a new ERP is rarely seamless. Even with a cloud-first solution, migration introduces risks around data accuracy, reporting continuity and day-to-day transaction processing. Businesses should plan for phased deployments where critical modules (such as finance) go live first, or parallel runs where the old and new systems operate side by side until stability is proven. These strategies reduce the risk of operational downtime and maintain business continuity during the cutover period.
- Change resistance – Technology is only one part of the challenge. Employees need to adapt their workflows, learn new interfaces, and trust that the system is worth the effort. Without structured change management, adoption will lag. Early stakeholder engagement, role-based training programmes and clear communication from leadership are non-negotiable. Establishing “super users” within each department helps build internal champions who can troubleshoot and promote adoption across the wider team. Consider a post-go-live optimisation review to keep momentum.
By tackling these risks before they escalate, you create a smoother, more controlled ERP rollout that minimises the chance of failure.
Build trust in your ERP system with security and compliance
A cloud ERP holds the crown jewels of your organisation – financial data, customer information, supply chain records. Protecting this data is about more than avoiding breaches. It’s about building the trust that employees, customers and regulators place in your business. Security and compliance must be embedded into your ERP selection and configuration process.
- Data security – Look for enterprise-grade security features: encryption in transit and at rest, role-based access that enforces least-privilege access, and multi-factor authentication for users. In many cases, your ERP vendor will operate in a shared-responsibility model, where they manage infrastructure security, but you remain responsible for how data is configured and accessed.
- Regulatory compliance – Different industries come with different obligations. Manufacturers might need ISO-aligned controls, healthcare businesses face HIPAA requirements, retailers handling EU customer data must consider GDPR. When evaluating vendors, confirm they can provide certifications (e.g. SOC 1/SOC 2, PCI DSS) and map those to your internal risk register. See our notes on NetSuite global compliance.
- Automated audit trails – A robust ERP will automatically log system activity, capturing who accessed what data and when. These logs are vital during audits for financial reporting, internal governance or external regulatory checks. Automated audit trails reduce manual record-keeping, strengthen accountability and provide the evidence needed to demonstrate compliance.
Cloud ERP vendors typically handle security at scale, but it’s your responsibility to ensure compliance aligns with your industry needs. This means ongoing risk assessments, periodic penetration testing and reviews of vendor performance to ensure your security posture evolves alongside threats. As your environment changes, schedule a regular environment review to keep controls tight.
Why this matters
A cloud ERP project isn’t just about replacing outdated systems. It’s about putting in place a platform that can support growth, improve resilience and protect your business in a fast-changing regulatory environment. By addressing implementation challenges and prioritising security and compliance, you reduce disruptions, protect your data and maximise ERP adoption – ensuring your investment delivers lasting value.
If you’re planning a change, our team can help you shape the business case, evaluate options and de-risk delivery – talk to Annexa.
You might find these resources helpful
- Assessing business readiness – is it time to implement an ERP?
-
Building a business case for cloud ERP – starting the assessment process
- 6 signs you’ve outgrown your accounting software – indicators your tools are holding you back
- Common questions answered: from Xero to NetSuite – practical guidance for first-time evaluators
- NetSuite vs MYOB: the essential guide to upgrading – capabilities, costs and fit
- AI in the NetSuite ecosystem – automation, risk and control implications
- NetSuite implementation services – approach, delivery and governance
- NetSuite optimisation review – tighten controls post go-live