How ERP implementations fail

Are you considering a new ERP for your business in 2022?

Globally, the failure rate of ERP software implementation sits at a staggering 60 to 80%. New major software implementation is a complex process, and there are associated risks.

This ERP failure checklist is designed to educate businesses, help ERP users avoid mistakes and guarantee that companies get the most from their enterprise resource planning system.

View the SEVEN key points below.

 1) Change Management

Implementing an ERP is a significant investment and major change for any business as it impacts people and processes at every level. To guarantee an ERP is successful, eagerness about this significant change has to be led from the top. The executive team should embrace and celebrate the benefits of the new ERP so employees take to the system with enthusiasm and intent.

2) Picking the wrong partner

Every ERP company in the industry is different, and there are many reasons to select a specific ERP partner. Research, question-asking and understanding software platforms will help you learn which ERP is best for your business.

3) Losing the bigger picture

It can be tempting to focus on one area of immediate change with so many challenges to solve and so many solution options. This focus can cause businesses to lose sight of the bigger picture: the main reason for introducing an ERP to start with!

The desire for efficiency in specific departments can drive a new ERP and module tools that can quickly solve issues for that department’s tasks. However, understanding the knock-on effects that changes have on the company is also important. Another example of isolating focus is having one staff member driving fantastic ideas and changes during the scoping of a new ERP whilst other team members are less involved. Appoint an overseer not embedded within a particular team for these instances that will encourage engagement across all departments.

4) People power

ERP implementation is a major project for most businesses and requires time and commitment throughout a company that you need to get right from the start. From previous experience, lead team members should evaluate how to best manage and train employees to adapt to the new ERP. This assessment could lead to hiring temps or giving junior staff bigger responsibilities to give key staff the ability to concentrate and master the new ERP system. Above all else, managers should invest time and prioritise the importance of change management.

5) Technical vulnerability

Most businesses will need a new ERP system to integrate with existing systems and software. You should be clear and calculated in scoping these processes so that vendors can integrate systems properly. Make it a priority to find the right solution rather than a quick solution, and the team is dedicated to investing their time in your goals. This approach makes all the difference for the initial software implementation and its future success.

Data migration is another area of risk, and it is a considerable part of the implementation. Without open communication at the scoping and delivery stage, this can leave space for errors down the line.

6) The resistor

An ERP implementation needs more than manpower to be successful. A strong sense of willingness (especially during challenges) is the only way to help guarantee successful implementation. Just one person resisting the implementation from the start can affect the project’s success.

Identify any resistors in the early stages of implementation and convert them to get on board. After all, the software is only as good as its involved users.

7) It takes work

The more you put into implementing an ERP, the more you get out of it. An out-of-the-box ERP software may be quicker and easier to implement but may not perform to meet the needs of your business.

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