Why ERP Implementation Fails.

Even though the ERP system has been an efficient method for managing one’s business. A shocking fact is that near about 75% of all ERP implementation failure is due to a lack of knowledge or training and budgetary constraints. Benjamin Franklin said,” If you fail to plan, you are planning to fail. “these words prove true in the business environment in many aspects. Research, information, training and high standard management are necessary for the success of this system in a business. There is no doubt a lot of reasons why ERP implementation might fail, but below are certainly valid points to take into consideration.

Poor planning in the initial implementation phase

It is a fact that Enterprise Resource Planning is a large and complicated system and takes time, adequate management and dedicated training to flourish as a proficient tool within your business. To prosper in a business, it is necessary to know how to operate it confidently? The relevant trained employee should be aware of the results of the data collected is 100 % accurate with extreme certainty. With enough diligence, ERP could prove to be a helpful aid tool for your business.

Lack of Adaptability

A lack of adaptability has an adverse effect on productivity often prevents growth. In the same manner, it applies when it comes to introducing new systems into a business. Chances of encouraging growth depend upon the adaptability of your business model and staff. Here many questions arise about the training and adaptability of your staff, dependency on your daily operation on your current management system you should have. If the business affords the time needed to dedicate to training? These are some questions that should be answered positively prior to committing to an ERP project.

Under-estimating resources

Most common mistakes happen due to resources projected. A solid knowledge of the internal and external resources is needed to complete the project. It is often important to backfill most transactional employees by bringing in temporary resources that would free up.

No goal clarity

While evaluating an ERP system, the most common mistake an organization makes is the lack of goal clarity. So you should be clear about what you what from the ERP, what your budget is, what you want to solve to achieve success. Implementation of an ERP with a clear objective in your organization helps you in defining other things and justifying the uses of resources.

Lack of communication with the ERP vendor

ERP related queries should be well discussed with your ERP vendor. Consistent communication during the ERP implementation is most important. Regular meetings and calls proved to be very helpful for making the whole process smooth.

Over Customization

Implementing a generic ERP solution is not always feasible since every organization is unique. Customizations are costly and overdoing it means an increase in costs and deployment time. Over customization also results in high maintenance and more complications during upgrades.

Poor post-implementation support

Post-implementation support is an integral part of a successful ERP system. After implementation, some issues will arise that sometimes needs assistance. So choose a vendor that is certified, experienced ensuring proper implementation.


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