Reasons behind ERP Implementation Failure in Middle East

Reasons behind ERP Implementation Failure in Middle East

August 12, 2021

As businesses grow more and more nowadays, the business processes and operations multiply leading to a management pressure. That pressure called for a system or software that can store a great deal of information and make doing business easier and more efficient. Thus new software- Enterprise Resource Planning software (ERP) -was developed and introduced into the market.

Reasons behind ERP Implementation Failure in Middle East

 

As businesses grow more and more nowadays, the business processes and operations multiply leading to a management pressure. That pressure called for a system or software that can store a great deal of information and make doing business easier and more efficient. Thus new software- Enterprise Resource Planning software (ERP) -was developed and introduced into the market. 

 

The Enterprise Resource Planning (ERP) started in the 1960s, and it was first developed to help businesses plan and schedule their operations. However, soon the software has become the most complex and largest enterprise framework that significantly enhances management, develops business, reduces expenses and helps in supervising business procedures and integrating the various business departments together leading to great outcomes; expanding the business and making more profits.


Therefore, many business organizations in the developed countries took the lead, and executed ERP software at their workplace to improve their systems, resources, and different business activities. However, nowadays ERP is no longer applied only there. It has wildly spread across the developing countries as well.

ERP implementation in Middle East Countries 


Business corporations in the developing countries across the Middle East are implementing ERP systems to keep pace with the big economic movement in the world, prove themselves in the market, and compete with the rival Western Enterprises. However, the positive results of enterprise resource planning in the countries of the Middle East like Bahrain, Lebanon, Kuwait, Saudi Arabia, Oman, Qatar, Syria, UAE weren't similar or as expected for many reasons.

 

The most significant factor affecting the implementation was the users' resistance to adopt the new framework. In fact, in contrary to the developed countries, users in the countries mentioned above weren't fully willing to adapt to the new technologies in the same degree which prevented them from having the expected benefits.

   

A lot of businesses among the Middle East countries like Oman, Saudi Arabia, and UAE like the program especially tailored to fit their aspiration rather than making themselves flexible to the software workflow. Thus the users demand over customization in the ERP framework, which seriously affects the success of ERP implementation by disrupting the standard workflow, and hindering its good operation.

 

Accordingly, we find out that no matter how good the ERP chosen and big the investment made, ERP frameworks success or failure depend to a large extent on the end user and how they work on the software. Moreover, pay in mind that to achieve a successful ERP implementation in your workplace, keep customization as little as possible. This not only saves your time and reduces your expenses but also remarkably minimizes the risk of ERP implementation failure.

 

 In addition, countries in the Middle East face many other challenges with respect to their ERP implementation such as cultural differences, the inadequacy of information technology, lack of experience, and further the government approaches.

Likewise, poor resource allocation, unfeasible desires, and modification requests during the implementation process can hold up the ERP execution procedures. That calls for a comprehensive study of all prerequisites, and how to employ the resources properly to ensure the implementation go flawlessly until the Go-live phase.

 

Moreover, the lack of knowledge about ERP packages and good service providers also ends in making wrong choices which cause regret later on. Many businesses select freelancers for their ERP implementation rather than certified ERP consultants to cut down their expenses and other assets. Consequently, the ERP implementation fails to serve the very goal of it, or achieve the expected outcome in the long run. Thus, the cheaper option turns out to be highly expensive for the business in the future.

 

Therefore, seeking help from a good ERP consultant makes you forget about all worries concerning achieving successful strategic management, proper resource allocation and efficient project management. A good ERP consultant can pinpoint the current business challenges and offer solutions, and then provides proper planning and developing of the software application, also finds out if customized solutions required or not. Simply saying, a good ERP consultant can assure you with flawless ERP Implementations, integrations, migrations, and fast long lasting support.

 

Selecting an Odoo Partner for implementing your ERP software relieves you from all problems discussed above. Odoo Partners are well-trained in Odoo ERP and have wide experience and knowledge in all the service you need.

Boraq Group is an official Odoo Partner and has been in Odoo sector for years. The company enjoys a great deal of experience in all industry fragments such as CRM, Sales, Purchase, customization, etc. It has a team of talented, professional Odoo experts with wide industry and techno-functional knowledge. The presence of those certified and skilled developers and consultants guarantees attaining great outcomes, and putting an end to all your business problems.


Finally we present below a quick review of the Middle East’s ERP implementation failure factors:

1. Resistance from Users

2. Over-customization

3. Absence of strategic management planning

4.  Lack of training and key resources. 

5. Absence of framework/innovation 

6. Absence of adequate abilities/experience 

 

Key words: ERP implementation, ERP consultants, customization, Odoo Partner, Boraq Group, Middle East.