ERP implementation is a critical stage that includes data migration and integration process, user training, and finally testing and go-live planning. Many may find it a daunting task but ERP implementation fails can be avoided by adopting a methodical phased approach for deployment.
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ERP Implementation Fails to Avoid
1. 5 Reasons For Moving In-House ERP To The Cloud
ERP Implementation Fails to Avoid
2. ERP implementation is a critical stage that includes data migration and
integration process, user training, and finally testing and go-live
planning. Many may find it a daunting task but ERP implementation fails
can be avoided by adopting a methodical phased approach for
deployment.
According to the analyst firm Gartner, 75% ERP implementation fails
due to many reasons that we will discuss in this blog. Here, failure
doesn’t mean that ERP never goes live. It means – costs are exceeded
remarkably, the schedule is not proper and
improvements/customizations done by the team do not meet the
expectations.
Introduction
3. You should know what you need from an ERP. Not every ERP vendor wears
multiple hats, therefore, it is better to convey what you require from the
software and what are the challenges that you are facing in the company.
ERP solves an array of problems. It is a must to identify the objective
before getting the implementation done. Sharing your thoughts about ERP
requirements with the vendor is always a good idea. One of the
researches by Panorama states that 61.1% of ERP implementations take
more time than expected and 74.1% ERP projects usually go beyond the
actual budget.
1.Inadequate planning
4. No organization is alike. Sometimes, many organizations seek more
industry-specific features that can fit their business needs. It is true that
customization becomes unavoidable at some point of time but
customizing a standardized feature can be dangerous too.
For example, ERP can be customized to get integrated with CRM,
Accounting or Finance module which is not available out-of-the-box in a
generic ERP.
2.Massive customization
5. Change is constant. ERP implementation brings a huge change in the
organization and there may be a possibility of someone showing
resistance. End users have to learn new ropes, work on new system where
the UI will be different and processes will be new.
To accommodate this transformation while sustaining the performance, it
is imperative to embed changes in the users to anticipate and mitigate
resistance.
3.Lack of change management
6. Many ERP vendors lowball the ERP implementation cost and time.
Organizations expect that they will have to pay the cost quoted by the
vendor. However, this is not the case. The cost and duration of
implementation most often go up compared to the numbers assured by
the vendor.
How to avoid:
Evaluate the ERP deployment done in a similar organization and ensure
that your scope is wider. Costs included in training your staff, bug fixes and
customization can be a little higher.
4.Unrealistic expectations
7. After an effective change management technique, it is a must to provide
comprehensive ERP training to the end-users so that they can become
comfortable with the new way of managing business processes.
How to avoid:
The success rate of ERP implementation rises when you provide
comprehensive training to the end-users. The project heads and managers
should have the understanding to carry out testing and manage the
software in a planned manner.
5.Improper Ongoing Staff Training
8. Ensure that you choose a vendor who’s focused on an equipped plan and
who endeavors to offer the best services for a successful ERP
implementation. ERP implementation is a long and complicated process,
but you can avoid mistakes and get back on track if you lose focus.
OptiProERP empowers you to improve the efficiency of your
manufacturing operations. Discover true value with predictability and
transparency in your business. An affordable, reliable, complete
Manufacturing ERP Software, OptiProERP, makes the complex simple.
Conclusion