Maximizing ROI from Your ERP System: What Malaysian Companies Need to Know

Introduction

ERP systems are critical to business success, but implementing them is complex. Many Malaysian companies invest significant resources in ERP projects, only to face delays, budget overruns, or system inefficiencies. One of the most effective ways to prevent these issues is through a proper ERP audit — yet mistakes in auditing can be costly and reduce ROI.

A well‑conducted ERP audit ensures system configuration, compliance, workflows, and processes are aligned with business goals. Unfortunately, many companies make avoidable errors that compromise efficiency, compliance, and overall project success. According to recent industry analyses, audits help spot security risks, process inefficiencies, and compliance gaps before they grow into major problems. DCKAP+1

In this article, we highlight the top 5 ERP audit mistakes companies commonly make — and how to avoid them — so your ERP investment delivers real value.

1. Skipping Independent Audits

Relying solely on your ERP vendor for audits is one of the most common mistakes. Vendor‑led audits can be biased, potentially overlooking issues that might impact your project later.

Tip: Engage a vendor‑neutral, independent ERP consultancy to provide objective, unbiased insights. Independent audits identify hidden gaps, configuration errors, and inefficiencies before they escalate into major problems. Independent audit and compliance‑readiness guides stress that unbiased third‑party reviews are critical to uncovering hidden risks. Axial ERP+1

Example: A Malaysian SME assumed the vendor’s audit was sufficient — only to discover months later that critical workflow errors were causing delays in finance reporting. An independent review would have caught these early.

2. Neglecting Documentation Reviews

Incomplete, outdated, or inconsistent documentation can lead to errors in system configuration, user training, and process execution. Many companies underestimate the importance of thorough ERP documentation audits.

Tip: Conduct regular documentation reviews to ensure all workflows, configurations, and processes are accurately recorded. Proper documentation supports smooth onboarding, reduces training time, and minimizes operational risks. ERP‑audit best‑practice sources emphasise maintaining up‑to‑date documentation and audit trails to support transparency and compliance. DCKAP+1

Example: Missing documentation for approval workflows forced a company to manually track critical transactions, slowing operations and reducing ERP ROI.

3. Ignoring Compliance and Regulatory Requirements

ERP systems must comply with local regulations, data protection laws, and industry standards. Failing to audit for compliance can expose your business to legal penalties, data breaches, or regulatory issues.

Tip: Include a compliance and audit‑readiness review as part of your ERP audit. Evaluate data access controls, reporting standards, and regulatory requirements relevant to your industry. ERP compliance‑readiness resources show that ERP systems with proper audit trails, access controls, and record‑keeping significantly reduce compliance risk and simplify audits. nividasoftware.com+2Procuzy+2

Example: An audit might reveal that financial reports were not aligned with accounting standards, preventing potential legal or tax issues.

4. Focusing Only on Technology, Not Processes

Some audits evaluate only system functionality, ignoring how business processes are executed. A technically perfect system may fail if processes are inefficient, inconsistent, or misaligned with objectives.

Tip: Audit both technical systems and business processes. Ensure workflows, approvals, and operations align with organizational goals and deliver tangible value. Good ERP audits look beyond configuration — assessing processes, controls, data flow, and user‑process alignment. DCKAP+1

Example: An ERP module for inventory worked perfectly, but poor procurement workflows caused stock shortages — a problem only identified when processes were audited alongside technology.

5. Lack of Executive Reporting and Follow-Up

Even when audits are conducted, failing to report findings to executives or follow up on recommendations is a major oversight. Without leadership visibility, issues may persist and improvements may not be implemented.

Tip: Prepare clear executive-level reports and establish a follow‑up plan to track the implementation of audit recommendations. Ensure accountability and monitor progress to safeguard project success. Compliance‑and‑governance experts recommend regular reviews and stakeholder reporting to maintain control over ERP performance and compliance. Axial ERP+1

Example: A company performed an audit but did not brief management; critical risks remained unaddressed, resulting in delays and compliance issues.

Conclusion

Avoiding these common ERP audit mistakes can save companies time, money, and operational headaches. By engaging a vendor‑neutral, independent consultancy, conducting thorough documentation reviews, ensuring compliance, auditing both systems and processes, and establishing executive reporting and follow‑up, your ERP projects are far more likely to succeed.

Need help safeguarding your ERP project? Contact Synerviq today for independent ERP audits, governance support, and consultancy services — ensuring your ERP system delivers maximum value and ROI.