ERP Implementation Challenges and How to Overcome Them

ERP Implementation Challenges and How to Overcome Them

August 09, 2021

A well-executed ERP implementation boosts your business efficiency and gives you uncounted rewards. However, a wrong ERP implementation can ruin your company giving you only losses.

ERP Implementation Challenges and How to Overcome Them

Points to Check before Starting ERP Implementation

 

ERP implementation is the key answer to all your business problems, yet ERP implementation in itself might be risky if not executed properly. For example, the businesses may face many challenges while implementing their ERP with respect to the selection, data quality, technical, managerial, even the psychological aspects. Therefore it is highly recommended that you keep your ERP implementation in strict control, and to conduct multiple checks before starting the ERP implementation.  



A well-executed ERP implementation boosts your business efficiency and gives you uncounted rewards. However, a wrong ERP implementation can ruin your company giving you only losses.



Today ERP has become a must go tool for business as it helps to organize the whole business operations and guarantees coming out with greater outcomes. With automation of ERP, manual processes in the business have decreased dramatically and increased collaboration and coordination among the business departments. The rapid fulfillment of business tasks has lessened the administrative burdens of the business managers, helping them to focus more on their sales, marketing, and other strategic business developments. Thus, in short, ERP has made the business organizations a great favor facing the growing challenges, offering full support and much more.

However, implementing an ERP comes along with numerous business challenges. Let's have a look before heading to ERP implementation checklists.



Picking the right ERP Challenge: When choosing to have an ERP implementation at your business, the most important questions that supervisors and CEOs have are about the type of ERP they should choose, the scope of ERP, scalability, budget, and so on.  Moreover they wonder whether the ERP implementation will come right for the business, will it suits the organization's spending limit, inclinations, and industry needs. Therefore you must make a comprehensive research in order to choose the best ERP suitable for your business requirement. Give it time and do not rush in making the ERP choice to avoid regretting afterwards.



Technical Challenge: After you're done with the selection challenge, a technical challenge comes on the way. In order your company to be compatible with the ERP application, you may need to renovate your server and workstation.  However, with the right ERP implementation partner like Boraq Group, you can figure out things faster.



Data quality challenges: Data quality may also constitute a big challenge as the new ERP frameworks may not coordinate with old frameworks. Therefore planning your steps in advance assists you in overcoming this conflict between the heritage ERP framework and the newly coined ERP. A properly planned project clearly outlines the potential alterations required for the system’s consistent working.



Managerial Challenges: ERP execution leads to major alterations in the business's directs, model and practices. With another ERP framework set up, data entered by one user can be accessed by different others in no time. This wonderfully raises the role of the users' responsibilities.

At the same time, new management practices and standards are needed. Likewise, steps must be taken to change or update the current practices to be compatible with the new ERP framework.

Psychological challenges: This is yet another obstacle with ERP implementation. Your organization will be a mix of heterogeneous employee communities, with some open to changes while others prefer old school. Therefore, when it comes to ERP implementation, many employees may not be interested. So how can you solve this problem? Don't worry. Try to engage all your employees in the process of ERP implementation by taking their opinions and suggestions regarding the requirements and needs. This not only helps in making the right ERP choice but also motivate the employees to quickly adopt the new application.  

 

Checklist for ERP implementation


1. A well experienced team to execute the ERP.

 

2. Documentation of current business processes, common problems, and missed opportunities.

 

3. Outlining the exact requirements and functionality needed in the application.

 

4. Specifying clearly the goals and objectives of ERP implementation.

 

5. Setting a proper timeline and budget.


6. Determining key performance indicators and desired outcomes.


7. Making a blueprint of how a new framework will behave in various business departments.

8. Assurance of networking facilities and other hardware infrastructures.

9. Removing out-of-date information.

10.  Migration Review

11. Placing new databases, mapping database fields among new and old.

 

12. Testing interfaces, functionality and reports with real-life scenarios and transaction data.

13. Developing a clear training program, thoroughly onboard the trainers and begin training users.

 

14. Maintaining proper and consistent communication with all throughout the ERP implementation process.

15. Assuring the participation of users and taking their feedback to make changes in the application.

 

16. Prioritize every business department and key operations.