ERP is one of the essential technologies that helps improve the overall efficiency and productivity of a business. Poor planning, vendor selection, and inefficient implementation can lead to an unfavourable outcome.
ERP is a beneficial and expensive investment. An organization should know and guard against the possible missteps that can contribute to ERP failure.
Unrealistic implementation of ERP
If the set expectations are unrealistic, a business will spend more resources, money, and time to execute it. This poor planning and decisions can sooner or later become the cause for the failure. That is why it is important to set achievable expectations.
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No Participation From The Executive Team
The executives are required in the planning process. Their inputs are needed to approve project resources and budgets in the ERP implementation. They should be involved when forming ongoing decisions related to major business decisions, modifications to business procedures, and other critical strategic considerations.
Uncertain Business Procedures and Needs
Setting clear business requirements is the initial and a very important step in the ERP implementation. In absence of it, there can be chances that the projects go over budget, or consume more time to execute, or fail to fulfil the broader strategic intent of the organization.
Not Spending Adequate Time on Business Process Reengineering
One of the advantages of an ERP implementation is that it enhances business processes. One of the reasons behind the failure of ERP implementation is the business owner does not allocate time to redefine business processes and carry out fundamental improvements.
While you incorporate this key activity, you would also require involvement from the management team. It will ensure that the project is in alignment with the said expectations, major decisions are formed within speculated time, and resources are directed properly.
No dedicated team
For efficient implementation of the ERP software solution, a business should form a cross-functional and cross-departmental team. This along with the assistance of the executive team and upper management ensures that all the business areas are properly addressed. To prevent ERP failure, there should be an internal core that is devoted to the project.
Absence of training
Another mistake that a few organizations commit is not scheduling the training program within 90 days before the ERP deploys. Along with implementing the system, a business should also need to train all its new and existing users to use the new system. It should provide ongoing training and support to employees so that they do not face any difficulty while using the system.
Make the end-users and employees aware of the changes in the system and adapt to those changes properly. Along with providing hands-on training on ERP, aspects such as organizational design, process analysis, organizational gap analysis, employee communications, and organizational readiness should also be considered.
ERP failure doesn’t happen all of a sudden. They are the result of the mistakes that fester with passing time. Quick identification and resolution will help project teams to avoid them and assure that business initiatives remain on track.