6 Important Lessons Learned From ERP Implementation Failures
The deployment of new software in your core business activities can improve productivity and efficiency. ERP is one of the tools you can consider acquiring to enhance the operations of your enterprise, but you should also appreciate the fact that implementation of such software is not straightforward.
An ERP implementation is not always easy and that is why it is important for every member of a business to take the time to pay attention to lessons learned from ERP failures in order to avoid those mistakes during their own implementation. By steering clear of these common mistakes, companies are able to maximize their long-term potential.
1. Poor Software Choices
Taking a closer look at the system requirements before choosing software is a great way to steer clear of this issue. ERP vendors are always going to push for a client to purchase the software with all of the bells and whistles but it is imperative that we ask questions to find out everything we need to know: Try to find out what issues cause you pain and what are the key areas an ERP should resolve within your business.
[ Related: 7 Ways ERP Adds Value To Your Company ]
2. Lack of Commitment From Leadership
The level of commitment to ERP implementation starts at the very top and if the leaders of a company are not willing to put their full weight behind the process? It is doomed to failure going forward. It is needless to say that adopting ERP will affect the core functions of your enterprise, which suggests that the active involvement of top management is critical. Unfortunately, some managers may shoot down the idea of investing in ERP for various reasons, and their subordinates may follow suit, which inhibits the successful implementation of such software.
Bringing all your managers on board before your company acquires ERP software is necessary. Top executives need to understand how ERP will affect core business functions as well as give suggestions that will make the implementation process a success. Involving managers in the process of implementing ERP software will also present an ideal opportunity for training to facilitate a smooth transition.
3. Legacy Reflection
Letting go of old habits is a challenge for some business operators and for that reason, they may prioritize customization of their new ERP to function like their legacy systems. The problem is that over-customizing ERP is costly, it may delay implementation, and it also increases the need for future upgrades.
The idea of enhancing user experience when installing new software may be a necessity, but ensuring that your latest ERP software resembles your legacy platform is not an option at all.
Acquiring an ERP solution that will address the requirements of your organization is a priority you should never overlook because it will reduce the need for customization. Embracing the fact that successful implementation of new ERP requires your business to adapt accordingly is also a wise idea.
4. Failure To Obtain The Proper Resources
While a team often has the right number of human resources and a lot of available tools at their disposal, that does not mean that the team was able to find the right people or the right tools to match the tasks at hand. It is important to focus on staffing your team with the right talents and experience to properly handle the job.
5. No Delegation Skills
Decisions need to be made in a timely manner. Companies that are going through the ERP implementation process do not always have the chance to do so because they have not chosen the proper party. Be sure to establish a hierarchy for decision making as early as possible.
6. Insufficient Training
In order for an ERP implementation to go according to plan, the correct training must take place. The users need to be well versed before the implementation is able to happen. If not, they are going to be forced to turn to the implementation support team every time they need assistance. This serves as a drain on key resources.