Why ERP Implementation Projects Fail In Much Organization?

By: Auscause Barrymore

Enterprise resource planning or ERP is a beneficial software system for businesses. ERP implementation may vary from one to another. This is because; vendors customize every software system according to the needs of business. However, there is one similarity between every software system which is, it integrates all the data into single database system. Nevertheless, flexibility of software system makes enterprise resource planning a very powerful tool that covers every aspects of business namely, accounting, sale, purchase, and storage of materials. ERP implementation can transform your business. But, there are many examples when implementation of this software system failed. Letís understand the causes of failure of ERP implementation in many organizations.

1. Choosing wrong solution can lead to failure of implementation of software system. Any business owner must have in hand accurate inventory of system requirements before purchasing a software system from the vendor. Poorly fitted software system can cause loss of time and money both. One should be relentless with the questions. Most vendors are overly optimistic about their product. Choosing bells and whistles over bolts and nuts is indeed a bad idea.

2. When business leadership is non-committal to the implementation, software system would fail. If the high-positioned personals of the business are not committed to ERP implementation, then no one else in the organization will show interest.

3. It is essential not to train the trainer. It means that proper implementation of enterprise resource planning software system would require full-court press from the company officials. Engaging only one or two key people to learn the software system can get you in trouble. Every user must have equal opportunity to work directly with the vendorís implementation team.

4. Never underestimate the need of implementation time. There are many vendors in the market, who would suggest purchasing fewer implementation days than you really need. It is only a strategy of theirs to close the deal with you. Always remember that, you have to be ready to pay whatever it takes for ERP implementation, because failure of software system would only cause loss of time and money.

5. Employees and even sometimes business owners show resistance to change which is possibly one of the biggest hurdles in an ERP implementation process. Such resistance is often rooted in some kind of fear. Employees would feel that organization is cutting costs to increase profit margins, which means that their job is in jeopardy. Many employees would fear that, they will never be able to understand the new system. Whatever may be the reason for resistance of your employees; education is the only answer. Let them understand by themselves that ERP implementation is for their benefit only.

6. Insufficient funding is another cause for failure of ERP implementation in many organizations. Purchasing and implementing a new software system is quite expensive. So, never cut cost on important issues, for example never hire fewer people than required to train the employees. And, never press vendor to complete the implementation process in fewer days, since it may lead to failure of ERP implementation.

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Read about Microsoft Dynamics ERP Review. Also know Infor ERP LN and Syteline Review. Read about Sage ERP Software Review.

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