Challenges of ERP implementation

By Mukesh Variyani May 27, 2019 Business

Challenges of ERP implementation

Challenges of ERP implementation

ERP Implementation is the process of bringing in the change, which is never easy. Are you facing challenges while implementing ERP software in your business? Here’s what you need to do.

Nowadays implementing ERP in your business has become a trend. Every small or large size business goes for opting ERP software in their daily operations. But they fail to go in the right direction and do not analyze their specific needs and requirements, which becomes a problem throughout the process. Inaccurate planning and management result in faulty decision making by the business. For successful implementation, it is important to know the pitfalls and not fall prey to some common ERP implementation mistakes.  

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You should never view your challenges as a disadvantage. Instead, it's important for you to understand that your experience facing and overcoming adversity is actually one of your biggest advantages. - Michelle Obama

  • Finding the right ERP software.

  • Every business wants what is best for its growth and development. But how to choose the right ERP software for your company if there are numerous choices available? This becomes one of the major challenges that organizations face when they decide to automate their operation through ERP. Finding the perfect fit for your organization can be confusing and a complex decision. Nobody would wish to invest in the wrong choice.

  • Adequate Training

  • ERP implementation is never complete without training the workforce adequately to use the system. They are ultimate users in your organization, they should be accurately trained throughout the process along with the proper understanding of the business goals and needs. Inadequate employees would hamper the work efficiency and their reluctance can create major problems in the working processes.

  • Implementation Costs

  • It is very important to analyze the cost that is involved in the whole ERP implementation process as a lack of budgeting can lead to issues in the future. Every business should plan in advance the cost it is willing to invest in the implementation of software which should be realistic and doable. Most of the time, due to access customization of ERP software, the entire cost increases many folds.

  • Management Involvement

  • The senior and top-level management of the companies plays an important role in ERP implementation. They are the decision makers and are the ones who set the ultimate goals of the business. They should communicate the objectives to the middle and other levels of employees in a very clear manner to avoid any discrepancies. Without their clear directive to use the system implementation can never be successful.

  • Timeline

  • It is always advisable to set an achievable timeline for the projects. ERP implementation life cycle is a slow and step by step procedure which takes accuracy and changes from time to time. Anticipating the time to implement is a challenging task, given the fact, there are many variables involved. Any delay in the development or adoption of the system can cause delays and increase the total cost of the ERP implementation.

  • Improper analysis of Needs

  • If the business is not successful in analyzing the right needs and requirements or if they are unable to access their purpose of implementing ERP software, it leads to failure and other issues in the long term. It can affect the productivity and growth of the business.

  • Sufficient Testing of the software

  • Testing is considered as an important phase of the ERP implementation life cycle. It includes finding out of issues and bugs in the software before it launches for the final use. Improper or insufficient amount of testing can lead to crashing and failure of the software after it is implemented.

  • Proper use of ERP software

  • The ERP software once implemented should help in simplifying tasks and achieving the desired goals. But this can happen only if all employees are using the features that are available or customized by the business. It is essential to keep track that all the features or modules integrated by you in the software are up to proper use, otherwise, it is only adding up to your cost.

How to overcome them?

There are some key points that will help you to face the above challenges of the ERP implementation. They are listed below:

  • Plan way ahead before you go straight to the implementation

  • Analyze your specific business needs

  • Train the workforce adequately on the system.

  • Ensure sufficient user side testing is to be done, specifically on customizations.

  • Allocate your budget properly, limit customizations within your budget

  • Ensure Top management is involved and using the system for their daily reports.

  • Slowly increase utilization of all available features of the ERP

  • Maintenance costs should also be allocated

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There will always be obstacles and challenges that stand in your way. Building mental strength will help you develop resilience to those potential hazards so you can continue on your journey to success. – Amy Morin

Conclusion

Not all business thinks so clearly before they go for the implementation of ERP software. They just follow the trend and dive into hasty decisions without making proper plans of budget, timeline, goals. This gives rise to a lot of challenges of ERP implementation that creates problems in the end. Facing the challenges and following the correct ERP implementation steps will provide the business with accuracy and will prevent the issues that can later be major problems.

mukesh

Mukesh Variyani

MD, Finbyz Tech Pvt Ltd