1. Choosing a right ERP vendor or partner for implementation
Recent surveys say that implementation of any software not only depends on ERP software you choose but also on the implementers who are going to implement the software. Major of global solution and implementation fails due to lack of implementers inability to understand and deliver the correct solution. One of the report says that more than 29% of any ERP implementations simply fail to achieve even half of the planned business benefits.
2. Reluctance to change
Implementing an ERP system within an organization changes the way people work. End user should be educated with the importance of system in place, for example; how ERP helps in process automation, less error and more efficiency. Top management should be able to explain how the business as a whole will benefit if it is adopted wholeheartedly by the organization staff.
3. No clear destination or vision
Top management has to be practical in explaining the reasons for implementation and expectation from the system. Most of the time, the requirement of users keeps changing with time. Users should focus on core functionalities and usage rather than other less important features of ERP, most of the time implementers and end users get struck with wanted issues which delays the implementation time.
4. Poor or insufficient testing
Software testing does not mean just to see whether system is work properly but also to ensure that it meets all business requirements and needs. Poor or insufficient testing can be the major reason for ERP failure. Investing less time for testing initially may reduce delivery time but this can cause more problems in longer run.
5. Lack of training
User training is as important as any other factor for success of ERP implementation. Proper training reduces user acceptance time and future support issues. Users tends not to use ERP system to the maximum because of lack of training. Today ERP is used by all departments of organization starting from procurement, stores, finance, sales, operations and even by Human resource. So, training plays important role in any integrated system for better efficient functioning for an organization.
6. Improper resource planning
Placing proper resource at proper place is very important, example; Proper resource who is having full knowledge about the subject matter should be engaged for providing data and information without disturbing their day today job.
7. Understanding about customization
There cannot be an exact solution fitting organization’s requirement, some level of customization is required to best fit business functionality. At a same time, customization has its pros and cons, if organization does not understand depth of customization required then they can end up in disaster.
8. Always have back-up plan
Things can delay anytime, and reasons can be many. To be in safer side both the party should have back-up plan in case somethings goes wrong. Example- company decides to go live with inventory bar-code scanning but due to implementation delay bar-code scanning is not enabled. In this case they can only proceed if they have manual inventory tracking mechanism available as back up plan.
9. Adopting the best practice
There is always the best industry practice available in the market, it is top managements responsibility to do the gap analysis and adapt the best practice suitable for their work environment.
10. Learning mentality
Last but not the least, when any ERP is implemented, end user should have positive attitude and learning mentality to understand the new system and make it work.