6 Reasons of a failed ERP implementation

June 6th, 2018

Intech Systems

ERP

The benefits of successful ERP implementation are many. It improves flexibility, streamlines business operations, reduces costs, and gives your business an overall boost in the market. But implementing an ERP software is not an easy task. The worst-case scenario of implementing an ERP system in your organization is a failed implementation.
But why does ERP implementation fail? It might happen that an ERP that worked well for one company fails in another. There can be several reasons for the failed implementation or upgradation that you can avoid in future for a successful implementation.

1. No goal clarity

The most common mistake an organization makes while evaluating an ERP system is the lack of goal clarity. An ERP solves many business problems. So, if you are not clear about what you want from the ERP, what your budget is, and what are the problems you want to solve, the end result will be tragic. Having a clear objective of implementing an ERP in your organization helps you define other things and justify the use of resources.

2. Wrong solution

There are hundreds of ERP systems available in the market and all of them had something unique to offer. Some are cloud-based while some work on-premise. Some are industry focused while some are generic. Choosing a wrong solution will be a huge loss of time, money and efforts. Study your business processes thoroughly, have a budget in mind, and choose the solution wisely after proper evaluation.

3. Over-customization

Since every organization is unique, implementing a generic ERP solution is not always feasible. But trying to tweak the system as per your needs sometimes results into over-customization. Customizations are costly and overdoing it means an increase in the costs and deployment time. Too much of customization also leads to high maintenance and more complications during upgrades.

4. Inadequate training and testing

The implementation should not be done in a hurry and without testing and training. According to a study, 95% of companies dedicate less than 10% of total budget to education and training. Organizations that don’t provide in-depth training to its users and that don’t test the system in advance faces many problems like demotivated and disinterested users and bigger issues after implementation.

5. Poor post-implementation support

The process of implementing an ERP doesn’t end just there. Post-implementation support is an integral part of the successful ERP implementation. Some issues will arise even after implementation which sometimes needs technical assistance. Thus, choose such don’t choose a vendor that charges less but the one that is certified, experienced and ensures proper implementation and support both.

6. Lack of integration

When you implement an ERP system in your organization, the main motive is to automate and integrate the business processes and systems. If you don’t have an integration strategy in place, you will end up with huge piles of data even after ERP implementation. This will hamper the seamless flow of data and will not provide visibility into business operations.

Keep in mind

Now you know not to do for the successful ERP implementation. Before deciding upon an ERP solution, make sure your ERP vendor studies your business processes and offer you the best suitable solution. This will help you in determining the size and scale of your ERP project.
We have worked with companies from various industries and provided them the best suitable solution, implementation, and support. So, we know it is difficult to select and implement the right ERP systemDo you think you can be the next? Feel free to get in touch with our experts.