How to avoid ERP failures – Steps to keep in mind
Most ERP failures happen because of improper initial planning. While implementation and during initial stages you should involve the actual users to check the system, know the exact time to go live, map the requirement and the features and choose the ERP that fits your needs. Similar to a building construction work where if you place the initial brick-layers inappropriately, the building will fall for sure, the initial stages of ERP implementation is quiet similar to this situation.
Here are few areas which if taken care of at the right time, can avoid a major ERP failure.
User Acceptance is Important
Disregarding user reluctance shouldn’t be ignored. Some employees may not be very welcoming to the idea of learning a new software system. They might be unaware of all the new capabilities the system offers. Some might be uncomfortable with the realization that upper management can keep better track of their activities. Further, they might never have been consulted about what such an ERP system should or should not do. These issues cannot be ignored but strictly needs to be addressed. If the system is not used by the actual users in the right way, it will only result in a poor ROI.
Setting Impractical Go-Live Dates
Setting an arbitrary go-live date without fully understanding the impact on day-to-day business is impractical. While it looks good on paper and may help convince the finance department to fund the software, the date may end up being no more genuine. When the go-live date-setting decision is made before the project starts with little knowledge about the application, configuration and deployment details, implementations often run into trouble.
Choosing Big Bang ERP Implementation
Big bang ERP implementation pondered the way ERP was implemented a few years ago. Nevertheless that has changed as their high risk and questionable return on investment became more apparent. Consequently, more organizations now show a predilection for small sprints. However, doing a little at a time should not be used as an excuse to falter along through the millennia slowly adding a bit here and there. If the ERP implementation takes too long, you will face a completely different market landscape with different requirements.
Undervaluing Manpower Needs
A lot of companies fail to commend major personnel in proportion to the scale of their project. If selected and implemented well, an ERP will manage and grow a business for many years to come. Underestimating the need of the count of people who should be taking care of the implementation will only end up the task getting completed and not the quality that it deserves.
Going the one-size-fits-all path or specific
One-size-fits-all ERP systems are a good idea for certain businesses – but not for all. When you evaluate an ERP, make sure you have listed down your requirements in detail which will act as a checklist. It is better to look for vendors with a focus on your specific vertical markets and industries with industry-focused solutions and services. Going for a standard ERP system may be a concern down the line when you need it to track details of your business and it doesn’t provide that option and provide analysis specific to your requirements.
This list is not meant to be all inclusive. Nevertheless, these five points need attention to increase your possibility to a successful ERP implementation.
The organizations must chart out the time frame for the ERP implementation and strictly adhere to it. Management needs to optimally utilize the software and also allow the scope for scalability in future. It is very necessary to take all the employees of the concerned department and also other staff on board have accord while deciding to implement the ERP solution. While deciding to implement ERP, it is good to take all the employees of the related departments, have accord. Appropriate training is very much essential for optimal utilization of the ERP software.