Why ERP Implementations Fail.
When a company searches for a new ERP for the first time, their top criteria may include price, functionality, fit to their industry, ease of use, hardware compatibility, and support from their implementation partner.
Once they have some implementation experience under their belt, their priorities change dramatically. Their number one priority becomes support from their implementation partner. The difference between success and failure comes down to having the right guidance to avoid the pitfalls that may come with implementing a new business system.
Avoid These Common Mistakes :
Lack of Executive Sponsorship - Management should convey to all employees that getting the new system up and running is an important priority. If it is not communicated from the top down, employees will not devote the attention that the project requires, and the risk of failure increases.
Not Selecting an Internal Project Manager with the Right Skills - Ensure whoever you choose to lead the ERP implementation internally has the knowledge and authority to change internal business processes. They will be making decisions about whether customizations are required or not, so they need to part of the entire process, from selection to go-live.
Your Employees May Block Progress - Long-time employees may feel threatened by the new technology. They know how they do things now and have a vested interest in replicating their processes in the new system, even if those processes don’t make sense anymore. Modern ERP Software systems support best practices in accounting and operations; any modifications should provide a cost/benefit that is valuable to your organization.
Continuously Focus on The Big Picture - You’ll have complainers who resist change and don’t want to embrace new processes. If you give them the reasons for the change, you are more likely to get their cooperation. For example, “I realize that this is adding a process to your normal workflow, but this will accelerate your month-end closing time to hours instead of days.”
Improper Training - Proper training makes a big difference in user adaption of the new ERP Software. Frustration sets in when they can’t find what they are looking for. Give your employees the gift of confidence by providing training that empowers them.
Underfunded Implementation Budget - The old ratio of 1:1 or 1:2 of software to services costs no longer applies. When companies move to the cloud, where the software costs consist of a smaller monthly subscription, the ratios become unrealistic. Regardless of what you pay for the ERP software, the same tasks to implement and tailor your system to work for your company still must be done. Successful implementations include a services budget that will allow your employees to thrive with the new system.
Are you in the process of evaluating an ERP solution?
What are your biggest concerns about the implementation?
Please comment below to continue the conversation.
Business Management International (BMI) is all about bringing business technology to distributors to help them compete. We’re not afraid to offer radically great customer service and proudly offer Microsoft Dynamics 365 Business Central, Dynamics NAV, and Acumatica to solve real-world business problems. www.bmiusa.com.