After endless struggles of dogging between task loads, data planning, and analysis, your organization finally decides to invest in an ERP system. Despite the heavy investment amount and relentless efforts, your ERP implementation fails to perform.
If this scenario sounds familiar, don’t worry since you are not the only one facing this challenge. Gartner revealed in a recent statement that 70% of ERP implementations are deemed to fail in meeting their business objectives.
To help you remedy this situation and attain a successful ERP implementation, we have compiled this guide with the top challenges that users face at the implementation stage and expert tips to overcome them.
Poor Planning and Requirement Gathering
When it comes to successful ERP implementation, most businesses fail at the very first step. In the absence of a defined roadmap, new requirements keep piling up, creating resource deficiencies, unaccounted risks, and delays. Result? Going overboard with resource allocation and increasing budget.
Rather than building your implementation project on ambiguity, define a clear blueprint of the areas of implementation, scope of work, and realistic timelines. Involve all key stakeholders to reduce the gap between actual and actualized.
Resistance to Change
It might come to you as a shock, but over 50% of ERP implementation projects fail due to resistance to change. The reason is quite obvious, Mr. Smith in your finance department won’t know how to operate ERP if you don’t train him. Rather, he will fear that the software will make his work harder.
What you need to do is provide them the training and support they need to get used to the new system. Make your employees understand how ERP systems are going to help them in the long-run and give them time to adapt to such drastic changes.
Inadequate Data Migration
Losing your precious business data is no less than a nightmare. But such instances are more common than you think! From poor quality data to a lack of data recovery planning, migration at the time of implementation can cause major data loss.
Expert tip is don’t rush the implementation and take adequate time to clean your data. Standardize data formats and use migration tools to avoid errors. A thorough backup and recovery plan can also be a lifesaver in case of data migration issues.
Lack of Testing
Lack of testing can be fatal to your ERP implementation project, with consequences as serious as project failure and system shutdowns. This is yet another result of rushed implementation that gives rise to unexpected errors and compatibility issues.
What you would want to do to avoid such a situation is to develop a testing framework with unit testing, integration testing, and user acceptance testing (UAT). Run the ERP system under real business scenarios to identify and resolve any bottlenecks throughout the process.
Choosing the Wrong ERP Implementation Provider
A drastic mistake that most organizations make is choosing just any ERP implementation service provider with the hope that the ERP will perform. What they fail to understand is that the choice of implementation partner is equally important to the ERP vendor.
When choosing the right ERP implementation service provider for your business, consider the following factors:
Lack of Industrial Expertise: To be able to provide you with the solution you need, the implementation service provider needs to understand the industry well enough. Years of experience will do your business no good if the service provider does not possess expertise in your area of work.
Limited Customization Option: Your business’s unique needs must be met promptly to be able to perform well. The right implementation partner like InnovateNow will give you complete freedom to customize your ERP system to your needs and also provide guidance to leverage the system to its full capabilities.
Post-Implementation Support: The ideal implementation support partner stays connected with you from the planning process to the post-implementation assistance. With ERP implementation support providers like InnovateNow, you get round the clock support and dedicated assistance to ensure the success of your ERP implementation.
Poor Project Management: Effective ERP deployment requires strong project management for timelines, budgets, and goals. If the implementation partner lacks project management expertise, your ERP deployment may suffer from delays, scope creep, or budget overruns. Providers like InnovateNow have proven track record on managing complex ERP projects to ensure that your implementation is always on track.
Budget Overruns: A common mistake in choosing providers is to select one based purely on the lowest costs forgetting about hidden charges. Low initial bid providers might not have enough experience or may be too cheap leading to unforeseen monetary consequences later. It’s important to select a cost-transparent provider who can offer a solution that meets your budget while maintaining high-quality implementation standards.
Conclusion
The implementation of ERP is a transformational process that can provide greater business efficiency, but it entails various challenges. By identifying these typical obstacles, businesses increase the likelihood of successful ERP rollouts.
Overcoming these challenges ensures that an ERP system fulfills its promise of improved processes and productivity as well as higher returns on investment. Planning well with clear communication and continued assistance throughout the ERP journey will allow for easier implementations resulting in better long-term success.