Why ERP
Implementation
Fails? ?

Enterprise resource planning (ERP) software
often arrives with several confirmations.
Right from fixing service industry errors and
data collection to saving ERP
implementation costs. In contrast, there is
always room for delusions during and after
implementation.
Introduction

Common Reasons
for Failure
Lack of Realistic Expectations
Negligence to Embrace Change
Lack of Shareholders’ Commitment
Lack of Proficient Project Managers
Lack of Budgeting for Equivalent Software
Overburdening of IT Department
Inadequacy to Train End Users

Lack of Realistic
Expectations
Companies often charge a lot without a plan with a precise definition of their
business requirements and goals- the main ingredient of failure. Institutions must
set their benchmarks and precisely define what is a success or a failure coupled
with the drawbacks around the corners.
Businesses shouldn’t allow the software to decide their business processes. The key
is to align the software with business requirements.

Negligence to
Embrace Change
Most companies often flame out to consider as a critical business asset.
No effort lies in assessing user acceptance of the novel system.
However, “change is the only constant,” and firms shouldn’t underestimate the change as it can
harm an institution.
To circumvent such challenges, firms must be ready for any change emerging from ERP
implementation. Staff engagement and opinions can help ease the implementation process.
Additionally, solution compatibility with the company’s culture is a must. Employees within the
firm must be ready to adapt to emerging changes.
ERP implementation

Lack of Shareholders
Commitment
ERP implementation is not an overnight task! It requires support from stakeholders and
employees, too. Undoubtedly, getting top executives involved in a task is a challenge.
For stakeholders’ onboarding, you will have to impart proper training, coaching, or any
other activity that can help you attain business goals. Besides, it’s essential to warn
stakeholders of potential risks, irrespective of the big rewards that lie in ERP
implementation.

Lack of Proficient
Project Managers
Poor project management is a common phenomenon within organizations.
Activities as intense as ERP implementation involve emerging issues. Good
leadership is the need of the hour to hold people and track things. To avoid such
odds, employ someone to take charge of the implementation and management. If
you don’t happen to find someone proficient, outsource your ERP implementation
needs.

Lack of Budgeting for
Equivalent Software
Companies overlook that they might require some additional software during or
after the implementation process. That is, no budgeting is set to cater to such
overheads. Significantly, these overlooked accompaniments lead to the failure of
parts if not the ERP system. It’s recommended to have a set budget for such ERP
implementation scope.

Overburdening of IT
Department
ERP implementation process demands a lot from the IT department. However,
the IT department is not responsible for the manufacturing and financial process.
Therefore, they’re not proficient enough to change in these segments. Expert
integration within vital business processes of a firm can serve as direct support
for ERP implementation in particular departments.

Inadequacy to Train
End Users
Post-ERP implementation, companies assume that the employees can proficiently
use the ERP system. Hence, companies abort investing in employee training.
Authoritative personnel of the company must appoint a dedicated project
manager, or ambassador who possesses a deep understanding of the .
These individuals must be proficient enough to train fellow employees concerning
the usage and functionalities of the system. This strategy boosts the possibilities of
a successful ERP implementation.
ERP solution

Conslusion
by Smartinfologiks is a flexible and efficient ERP solution that
streamlines various business operations. It caters to small, SME, and large
corporates, helping manage processes such as sales, leads, inventory, HR, project
management, procurement, after-sales services, and asset management. With a
multi-branch and warehousing system, BizSuite adapts to your daily routine and
aims to optimize business management.
BizSuite

Thank You
For Watching
sales01@smartinfologiks.com
+91 7400064691
www.smartinfologiks.com