An ERP software implementation can be a challenging process for any organization. Learning beforehand about some of the most common issues that occur can help company leaders prevent the problems from happening at their own organization.
Problems with ERP implementations can delay software go-lives and in some cases even lead to lawsuits. Successfully navigating these challenges requires careful attention to detail, a commitment to change management, proper training and the right partners, both internal and external. A successful ERP implementation can lead to benefits like streamlined processes and increased company revenue.
Learn about some of the most common ERP implementation problems.
1. Poor vendor selection
The ERP software vendor’s role goes beyond the technical aspects of an implementation.
The most critical resource that an ERP vendor can provide is their experience with software implementations, including best practices, pitfalls to avoid and the best processes to follow. Project team members should consider the vendor’s experience and the types of companies that the vendor has worked with in the past to ensure the vendor is the right fit.
2. Lack of crucial team members
Any project involving multiple departments requires strong collaboration, and an ERP software implementation is no exception.
Including the right representation from each company department is critical, and all team members must be aligned on the project goals. A common reason for a failed ERP implementation is lack of collaboration among team members, so the project leader must ensure their team includes employees from the needed departments as well as employees who will work well together.
One of the most important team members to add to the group is a project manager who has experience with ERP implementations. A project manager will ensure the team meets deadlines and is adhering to project requirements and the planned budget.
3. Unplanned project costs
Unexpected costs often arise during an ERP implementation. Some of these unexpected expenses can include customization costs that were not previously accounted for, hardware costs and integration costs.
The project leader can avoid surprise expenses by defining the scope of the project early on and encouraging team members to consider whether customizations are truly necessary.
4. Lack of change management
One of the most critical steps of preparing for an ERP implementation is clearly defining the system functionality and mapping it to existing business processes at the company.
Documenting business processes prior to the ERP implementation will help the process run more smoothly and make it easier to carry out change management at the organization. Doing so will also potentially improve training, as the implementation team will already have made clear how the new ERP software will fit with current employee tasks.
5. Lack of integration
Some companies must use other programs to augment their ERP software’s capabilities, and using an ERP system that can integrate with other software can help eliminate duplicate data entry. Some of the systems commonly integrated with ERP software include CRMs, HR software, transportation management systems and e-commerce software.
Lack of integration capabilities can lead to a failed implementation and dissatisfaction from employees, as lack of ERP integration with other company tools will likely make workers’ tasks more difficult to carry out.
Reda Chouffani runs the consulting practice he co-founded, Biz Technology Solutions Inc. He is a healthcare informatics consultant, cloud expert and business intelligence architect who helps enterprise clients make the best use of technology to streamline operations and improve productivity.