If you have decided to implement Enterprise Resource Planning (ERP) system in your company, surely you are expecting it to transform your business in more ways than one. Whether you have finally made the decision to switch to ERP or upgrade your current ERP system, you know that it is not a small feat, considering time and resources involved. And while it’s true opting for ERP has many benefits in store, it is only fair that you are aware of the potential difficulties as well.
Below are the most common reasons for ERP software implementation failure and what you can do about it.
1. Sacrificing quality for cost or speed
The cost and speed are indeed paramount factors when it comes to ERP implementation you must remember the quality of your ERP solution is of utmost importance. Considering their risk-averse nature, many executives choose the safest route in ERP project implementation, because they know they are not likely to stick around to see the full spectrum of their ERP system benefits achieve fruition. Instead, they opt to demonstrate to the top management that they have saved the company’s money or avoided the budget overrun.
In this case, you should think of your custom ERP system as an investment, not a cost. It will yield profit in the long run. This mindset will help you avoid the trap of falling for the questionable proposal from the cheapest possible vendor.
2. Not having the right team
One of the biggest mistakes you can make in your company’s ERP system implementation process is not involving the best talent for the vital task, and simply assigning whoever is available. If you are tailoring the software for your business. you need someone who knows your company and its operations inside and out in order to be able to communicate this information to the software developer. Not only they need to know the inner working of their own departments, but the other as well. Otherwise, your software will simply be a poor fit, it’s like having a tailored suit made without giving the proper measurements.
3. Failing to manage organizational change
With the rate at which technology is growing nowadays, change seems to be the normal state of the business. However, organizational change is not a piece of cake, as employees have a typical tendency of resisting to the change. This is yet another reason why ERP software implementation fails. You have to understand that implementing an ERP system is not simply about the technology but it is implementing change to the company. You need to view the training as the part of ERP system implementation process, which won’t be complete until your employees are comfortable with the new ERP technology.
4. Setting unrealistic expectations
Unrealistic expectation is a result of both poor planning by management and improper promises by the ERP vendor. While planning your ERP implementation project, you need to go into as much details as possible when it comes to your requirement and make sure your plan is realistic. It will help you to have a set of clearly defined goals and prioritize them. Understand the resources that you need to commit to this implementation, whether it is finance or time. It is always helpful to have a contingency plan, in any case, it will relieve your unnecessary stress.
5. Not ensuring proper testing
One of the things that companies try to avoid when getting tight into their schedule is testing, which is a big mistake. Testing isn’t performed solely for the purpose that your ERP software is working or not. It is to see whether the ERP software is working as per your business requirements and produces the desired outputs. During the testing process, you should refrain from comparing the performance of your new custom solution to your legacy system, as they will be using different data and processes, so the result will likely be incomparable.
Implementing a new ERP system is a tough undertaking. This is why you should approach it as carefully and methodically as possible. Do not let it fail victim to this common pitfalls. The above tips will help you avoid the highly undesired experience of ERP implementation failure.
The author of this article is working with Accely, providing customer flexible, rapidly deployed, end-to-end Enterprise Resource Planning, Mobility Solutions, E-Commerce and Business Analytics solutions through the SAP suite of applications and other leading technologies.