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Avoiding ERP implementation failure: an insight
Cases of the failure of the implementation of ERP, which is one of the most complicated software systems that exist, are on the upward curve and there are many reasons behind the failure. The problems that arise during the ERP implementation are mostly challenges that arise with change management.
An extensive refurbishment of any system can bring about changes in different levels and a company that initiates it has to be prepared for those changes at all affected levels. The implementation of the ERP software can affect every level in an organization, from the top management to the lower rungs of the organizational hierarchy.
Although change management is a complicated process, certain methods can ensure the successful implementation of ERP in an organization.
Proper implementation of a solution is essential rather than a quick implementation. Before beginning the process, planning is important that would determine the requirements as well as the key pain points of the organization. The first step to this is putting together a knowledgeable team that would conduct an internal audit of all business processes and systems.
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It’s critical that everyone from the top-down in an organization understands the need, reason, and strategy behind a business change. Almost every department would be impacted by ERP implementation and hence, it’s important to give a clear overview of the benefits that the organization can avail from the new system and the consequences of no-change.
Excessive customization should be avoided as it contributes additional risks, time, and costs to any enterprise project. There have been instances where the ERP solution had to be modified as it did not meet customer expectations. In other words, customization is the primary technical risk area within an ERP implementation framework.
Being earnest is important when choosing a prospective ERP partner such that the partner’s lack of experience or capabilities doesn’t prove to be a barrier to successful ERP implementation. If the potential ERP vendor isn’t up to the mark, the whole process is weighed down with obstacles and additional expenses.
Before implementing a new ERP system, it is essential to train the employees on the same as it may happen that the system from the business process perspective isn’t understood by the employees. Being reliant on the external ERP consultants is important for the product expertise and advice on best practices. However, one of the reasons for ERP implementation failure is the lack of proper training.
The implementation of ERP software is an ongoing process and not a definite one and requires the maintenance of good relationships with the vendors. A long-term, sustainable partnership with a reliable vendor is worth the money and time spent.
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