ERP Implementation Failures-Common Mistakes
Implementing an ERP solution is a big leap forward for any organisation which involves the transition journey from the conventional ways of executing tasks and processing information, to a modern, state-of-the-art business processing infrastructure, is among the most expensive, time-consuming and complicated tasks , and as critical for any business as working on any strategic business deal.
But irrespective of making huge investments on an ERP system, and willing to make it work for the organisation, companies find themselves disappointed and discontented with the outcome of the ERP implementation. The euphoric confidence associated with taking the organisation to another level of productivity by new ERP gradually gets replaced by regret of blocking significant amount of money on an ERP system that doesn’t live up to expectations.
There can be numerous challenges/mistakes which can result in disastrous ERP Implementation ,In my opinion following two can be the most common mistakes that can affect any ERP implementation:
- Assuming ERP implementation project just an IT project can be the most commonly mistake. After investing all the time and resources to ERP Project, you will end up isolating your ERP system in a vacuum. Without proper input company-wide, your ERP system will not be engineered and aligned to your business processes and requirements of business. To accomplish the full potential of new ERP system, everyone from the organisation should be involved in the transition journey. The ERP implementation project a should be a companywide Program and major initiative in every department of business which will ensure alignment of ERP software to business processes, employee ownership and ultimately employee utilization.
- Replicate legacy system on new ERP software is another common mistake which can jeopardise ERP implementation. People, who are reluctant to move away from legacy system, should focus on the functionalities of the new ERP software rather than the business requirements behind those functions. The fervent desire to replicate an existing legacy on new ERP system may require numerous modifications to new ERP which results in costs without real business benefit. The goal should not be to replicate the way things are done in the legacy system on new ERP system .Indeed, most times; a new ERP implementation may bring a slightly different process flow, different screens and different reports. People assigned to a company’s implementation team need to think outside the box and realize that their business requirements are being met even if the screens and buttons are not exactly the same.
In conclusion a successful ERP implementation depends not only on selection of the correct applications, but also on the quality of the communication between organisation and ERP application implementation consultants.Since this is very broad area of discussion Please not to forget mention here the challenges which you have faced during your projects.