Implementation of Enterprise Resource Planning (ERP) software is a complicated process. It impacts numerous aspects of an organization. With so many moving parts, so many things can happen to derail a project driving up the delivery time and the project cost or worse – a total project failure. Over the last 2 decades alone the recorded revenue loss due to ERP implementation failure is over a Billion Dollars. Big brands names like Nike, HP and Hershey have all been a victim of ERP implementation failure. Analysts allocate the high failure statistics for ERP implementation to lack of proper process and methodology. At eOne Infotech, through our work with hundreds of companies as a successful ERP Implementation partner, we have compiled the top reasons why ERP implementation fails and have documented some proven ideas and tactics for successful ERP implementation. (Download our eBook on Best Practices for ERP Implementation). The top reasons that may cause an ERP implementation to fail are:
UNDEFINED OR LOOSELY DEFINED OBJECTIVES:
The biggest reason for any project failure is usually the gap between the expected outcome and the final deliverable. Starting an ERP implementation project without first establishing a clear goal is one of the biggest mistakes an organization can make and is usually one of the most common reasons for ERP failure. Identifying the potential gaps and defining the expected outcome of the ERP project should be the first step even before engaging an implementation partner or finalizing the ERP software. Understanding what is needed will help you establish a strong strategy and develop an optimized path towards it. Establishing the expected goals and then mapping the most efficient way of achieving the set goals not only prevents a runaway train wreck but also helps you prioritize what is important and thus stay within the budget and on time. Documenting step-by-step workflow also helps identify gaps in the process that might have been overlooked as no single individual or a group has a holistic 360-degree view of the entire operation.
UNDER-COMMITTED BUDGET AND/OR RESOURCES
Inadequate budget or resources is often the second most common reason for ERP implementation failure. While budget restraints can be addressed by defining the objectives and prioritizing them based on available budget, the resource inadequacy might be trickier to address. Every business is unique and ERP implementation is a complex and costly process that impacts the very backbone on which a business operates. For a company-wide project to be successful, commitment and buy-in from all the key stakeholders (decision makers and users alike) is not only required but is also crucial if the project must be completed successfully. A top-down directive is usually the best approach. With the buy-in and support from the management, getting an overall commitment to resources and creating a single manageable view of the project is easier to achieve. viagra sales in australia After all, your doctor knows best when it comes to urinary tract infections. During cialis fast delivery that time, liver bile is redirected to the gallbladder. This medicine, used http://cute-n-tiny.com/tag/horse/page/2/ sans prescription viagra to treat erectile dysfunction (ED), tends to relax smooth muscles that contribute to blood pressure control. Most of the time, these free viagra samples ailments alter or develop over time. Selecting the right resources with representation from every team that may be affected by the ERP implementation is recommended as part of initial planning for a successful and smooth ERP implementation project. All project participants must be on the same page and understand their roles and their department/team’s accountability properly. Communication is also key. The significance of clear and open communication cannot be overlooked at any point. A communication plan addressing the project progress, individual team responsibility and expected deliverable, requirements, change management process and timelines, communicated regularly both vertically and horizontally removes ambiguity and holds each participant accountable without the need of finger-pointing.
SLOW ADOPTION BY END-USERS
The success of an ERP implementation project is directly related to user adoption. The faster the system changes are embraced by the end-users the sooner the organization can start reaping the benefits of their new ERP system and the better and quicker the ROI would be for the project. An important outcome of early user adoption is the identification of gaps earlier in the entire business process. It is highly likely that while the individual transactions work perfectly well – the end to end business process may still have glitches that are only identified when all key users start working on the new system. If gaps are identified while the last project testing is still underway, then they can be addressed in a timely manner and within the initial project scope. Though analysts like Gartner predict a very high failure rate for an ERP implementation, it can be minimized by strategically mapping key factors that may contribute to the failure of the project and deliberately avoiding them. Download our eBook on Best Practices for ERP Implementation to prevent your ERP implementation process from becoming complicated or getting out of control by weaving fa ew of our recommendations in the eBook within your overall strategy.
