Top 10 reasons ERP implementation failure in Market like India.
Top 10 reasons ERP implementation failure in Market like India.
Poor Understanding
Every business is comprised of a
Not finding Right System
ERP systems are a penny and often take hundreds of hours to tweak. Vendors typically have different expectations about provided services, timelines, and costs than the businesses who use their software do. After we have taken some issue into consideration, we will need to pick a vendor that satisfies the needs. Ask vendors about the issues we could potentially see and what plans are in place to address the problems.
Poor Adoptions
If the employees are not comfortable using the system, you will not see the benefits that you’d hope for. Moreover, your employees should also feel a desire to use the new software. If they’re happy with the current system, then there’s a slim chance that they’ll take kindly to the new technology. Proper training can be critical in bypassing this issue. Working with a trainer can help employees to get a better handle on how to overcome a lot of the problems your vendor might not have a solution to.
Destination
Once an organization makes the decision to implement an
Under-estimating resources required
Solid understanding of the internal and external resources needed to complete the project is critical. For internal resources, understanding the time commitment needed from business users, typically in the Finance, Accounting, or HR department, is one of the most commonly underestimated areas. During critical phases of the project. For external resources, having an agreement up-front with your consultants and contractors about the specific skills needed is critical.
Over-dependence on the consultants
Too much reliability on consultant can make the team more redundant. Most ERP implementation projects involve consultants, for
Insufficient testing
When schedules get tight and lack of time, reducing the number and depth of test cycles it is one of the areas that often get cut. The purpose of testing in an ERP project is not to see if the software works. The purpose is to see if the system meets your business needs and produces the output you need.
Lack of proper training
Today’s ERP systems are being used by more and more personnel within a company. Beyond the Finance and Accounting departments, modern systems also cover procurement, supply chain functions, compliance, customer relationships, sales, and so on. If the system includes HR or expense reporting, then essentially all employees use the system. Leaving training to a small phase at the end of the project makes it very difficult for users to get the training because they need to understand the system.
Poor Implementation
Implementation should be done in a proper manner to be successful. The implementation method should be in line with the goals of the organization. Sometimes,
Lack of Adequate Resources
For internal resources, the organization should have a solid timeline on the commitment required from critical employees that will be using the ERP, usually those in the Accounting or HR. And for external resources, the organization should find out from the consultants and contractors the duration, skills, and resources required for the successful ERP system implementation and execution of the system.