ERP Implementation Guideline: Success and Failure Factors

ERP Implementation Guideline: Success and Failure Factors

August 16, 2021

Are you about to implement ERP software in your business place? Are you worried about being overwhelmed with the software complexities or falling in mistakes that may ruin the whole ERP process? Don't worry.

ERP Implementation Guideline: Success and Failure Factors

 

 

Are you about to implement ERP software in your business place? Are you worried about being overwhelmed with the software complexities or falling in mistakes that may ruin the whole ERP process? Don't worry.

 

Experts in enterprise resource planning software mention some common mistakes IT leaders make when choosing, deploying and implementing an ERP system, and offer some guidelines to follow during the process.

 

So, here are some steps to do to ensure a successful ERP implementation:

 

1. CEOs Engagement:

The process demands a deep commitment from the mangers of the company as they should be available to solve any conflict or problem may happen implementation; therefore, their superficial supervision is not enough.

 

2. Careful Picking of ERP and Consulting:

There are too many ERP types in the market. Considering the right ERP solution that most fits your business requirement, and corresponds to the range of functionality and flexibility sought for is a must. Seek advice from an experienced independent consultant who has no interest in any ERP service provider, and can offer thorough guidance over all ERP implementation phases.

 

3. Project Management: 

Having a competent manger and the assistance of a well-experienced team of IT and functional experts, and an appropriate project management methodology, has a major role in the success of ERP implementation. Also, a comprehensive training on variant ERP modules will make your employees understand the program and its functions better resulting in more collaboration, teamwork, and productivity.

 

4. Having a clear idea concerning budget, cost and deadline:

ERP implementation is an expensive and time consuming process, so study well the time and expenses required before applying the software to avoid getting into quarrels with the ERP vendor in the future.

 

5. Legacy Data: 

Input your legacy data into the new system properly! Avoid the “garbage in, garbage out” situation. Also, check your old data and clean any irrelevant or unnecessary information before executing the ERP system.

 

6. Avoid Over Customization:

Many businesses demand customization at their workplace to have unique ERP software that is specially designed for their specific needs. However, the management needs to control them to avoid over customization.

Over customization may increase the implementation cost of the whole ERP project, make it complex, delay the Go Live date and the expected outcomes, and make upgrading difficult because customization requires changes to Source Code which takes a long time debugging and making the module functional. . It also keeps you at the mercy of the service provider, or you may have to go back to scratch, and implement the program once again in cooperation with a new program provider in case of any problem with the current software vendor.

 

Common failure factors: now after we mentioned some recommendations to do, let's list some specific concerns that lead to failures in the ERP implementation process.

1. Unrealistic expectations: 

ERP system is no different from learning a new skill, or trying to keep fit as all need a considerable amount of time and dedication to start giving fruit. Don’t expect the new system will make you a fortune or boost  your business overnight. Keep in mind while implementing the software that you may face some setbacks, but don't also worry. Once you've chosen the right system, you will get used to it, and start getting rewards in time.

 

2. Sticking to old school:

The system has new features to start working upon, and some employees especially the older ones may not be ready to change to the new situation which will prevent you from getting the desired outcomes from the program. Therefore, Work on engaging all your employees in the new system, ask them about their opinions and suggestions, and offer them all the support they need

 

3. Not enough training:

Training your employees well is a must! Make sure they all understand not only the modules they will be using, but also the modules and functions used by other departments. A sufficient training helps the users adapt to the new ERP system, improves the teamwork environment, and accelerates getting the positive results.

 

4. Don't go cheap:

Don't choose the cheapest ERP system in the market. Rather select the ERP choice that best fits your business needs even if it will cost you. Moreover don't choose freelancers over licensed partners to carry out the ERP implementation process. Even though hiring freelancers is cheaper, yet they don't have the required clearances, so they may fail to offer you the necessary support to reach your goal from the new system.

 

5. Don't Go Live too early:

Going live before learning well how to use it, will give you counter results; therefore, plan before you act, and go step by step.

 

6. Lack of documentation:

You need to document how to use the system to prepare your employees to various situations, and how to act in each case.

 

In short, ERP implementation is a risky complex process, and many factors play a role in its success or failure such as understanding the business needs, knowing the time and costs required, engaging all employees and closely supervising each phase of the process.