Posted by Jim High
Your business is a complex system. Your ERP software must account for, address and incorporate each of its parts.
There are many steps in the process of a successful ERP implementation. For the health of your business it is critical to understand what went wrong in those steps if you have had a dissatisfying ERP implementation. The most common problems occur in three main areas:
There are many steps in the process of a successful ERP implementation. For the health of your business it is critical to understand what went wrong in those steps if you have had a dissatisfying ERP implementation. The most common problems occur in three main areas:
1. Planning breakdowns
Good planning is the key to any successful business venture. Overall, poor planning is one of the biggest reasons for a failure in ERP implementation. Inside this larger issue, there are some key areas in the planning process that can sabotage even a well-planned ERP system.
Failure to recognize specific company needs is a common problem. The best system on the market, and the best people running it, will still fail if it does not meet the actual needs of your company. Look for areas where the data used in developing your plan was unreliable or incomplete and identify poor businesses processes still present after the implementation process. Until you account for these underlying issues, any solution to correct your ERP system will continue to fail.
Failure to compare systems is also a major issue. ERP is a highly varied field. Different products and platforms offer different benefits. Doing the necessary research on different systems not only helps you find the best value for your money, it helps you and your team better understand all the possible ways the right ERP solution can benefit your business.
Failure to recognize specific company needs is a common problem. The best system on the market, and the best people running it, will still fail if it does not meet the actual needs of your company. Look for areas where the data used in developing your plan was unreliable or incomplete and identify poor businesses processes still present after the implementation process. Until you account for these underlying issues, any solution to correct your ERP system will continue to fail.
Failure to compare systems is also a major issue. ERP is a highly varied field. Different products and platforms offer different benefits. Doing the necessary research on different systems not only helps you find the best value for your money, it helps you and your team better understand all the possible ways the right ERP solution can benefit your business.
2. Missteps
Your company followed all the planning steps, gathered all the data, addressed all the processes and found the perfect product, yet still faced a failure in implementation. The next step is to look at the people involved.
ERP is a technical area. It seems logical to leave the planning and process in the hands of your IT professionals. However, for a business-wide system to function properly, top management must be involved in the process. Their global perspective of the business is critical to an accurate understanding of business needs and evaluating the process as it proceeds.
Top management is also critical for providing the resources and commitment level required for successful implementations. This process takes time, resources, and a high level of training and effort from your people. Lack of commitment from management or staff causes inadequate training and support for the people using your new system. It can also lead to a lack of resources during and after implementation when the positive impact is not yet obvious. The perfect ERP solution for your company does no good if it is never completed, or your people will not or cannot use it properly.
ERP is a technical area. It seems logical to leave the planning and process in the hands of your IT professionals. However, for a business-wide system to function properly, top management must be involved in the process. Their global perspective of the business is critical to an accurate understanding of business needs and evaluating the process as it proceeds.
Top management is also critical for providing the resources and commitment level required for successful implementations. This process takes time, resources, and a high level of training and effort from your people. Lack of commitment from management or staff causes inadequate training and support for the people using your new system. It can also lead to a lack of resources during and after implementation when the positive impact is not yet obvious. The perfect ERP solution for your company does no good if it is never completed, or your people will not or cannot use it properly.
3. Project deterioration
Even with great planning and committed people, there is one last stage where your ERP implementation went wrong. Your project lost momentum during or right after the implementation process. You thought it was a great idea when you started. As time wore on, anxiety mounted and suddenly it did not seem like the answer you hoped for to grow your business.
The most common sources of momentum loss (outside planning or people problems) is a lack of understanding about the implementation. The modern world is fast-paced causing unrealistic time frames for the process to dampen enthusiasm. Modern technology makes breakthroughs daily, leading to unrealistic expectations about what your ERP will accomplish. Managing expectations from the beginning, with written goals and time lines, will help your ERP implementation finish strong.
The most common sources of momentum loss (outside planning or people problems) is a lack of understanding about the implementation. The modern world is fast-paced causing unrealistic time frames for the process to dampen enthusiasm. Modern technology makes breakthroughs daily, leading to unrealistic expectations about what your ERP will accomplish. Managing expectations from the beginning, with written goals and time lines, will help your ERP implementation finish strong.
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