ERP Implementation Failures
Enterprise Resource Planning (ERP) is a system integrated with applications to automate specific functions within an organization for efficient productivity. Using an ERP a company can ensure growth, lower operational costs, increase productivity, lower organizational risks, and increased efficiency.
ERP began its legacy by being utilized within the manufacturing industry. This escalated quickly when companies started noticing the efficiency of such a system within an organization.
ERP systems soon started becoming more diverse and currently possess the ability to function to particular industries’ requirements.
It is often found that Companies assume failed implementation of an ERP is because of the software. This is where they are wrong. It is the implementation process that has been performed incorrectly. When implementing an ERP, it is important to consider that this process is not a simple one and requires thorough research and understanding before introducing it to an industry.
Many companies have had their downfalls when introducing ERP systems to their business. However, the software itself is not the problem. There could be multiple reasons for ERP implementation failures. These include:
- The basis for implementation
Some companies find themselves merely following the trend and never stopped to think why to implement an ERP in the first place. This is often the first downfall of having an ERP fail within the organization. Companies assume an automated process is the solution for everything to avoid human failure but certain organizations perform better through their own tactics.
- Software customization
This is often something companies that are doing well, throw their money at. However, they fail to realize that this is a factor which increases the risk, requires a higher amount of time, and costs more to perform.
Utilizing ERP software doesn’t require too much customization while it could be beneficial and significantly reduce risk. Documentation should be managed and monitored to the necessary level.
- Inadequate user training
User training is a critical factor when it comes to using just about any software within the organization. Insufficient user training could put the company at risk and lead to lower productivity, more errors, incorrect output, etc.
A business should never fail to see the importance of having proper user training.
- Poor software testing
Software testing is something that needs to be done in stages. When performing software testing it is essential to identify if the right software has been purchased, the system complies with the relevant requirements, and how efficient it is. Without proper user testing, there would be an increased risk in the organization.
These are only a few of the many implementation failures organizations may face when using an ERP system. Therefore, when considering an ERP, it is important to do thorough research on how the particular software would be introduced into the company. Through correct implementation, organizations benefit significantly
Harrington Group International (HGI) is a company based in Orlando, FL, that is globally recognized by providing software solution improvements for industries worldwide. At HGI, we ensure increased productivity through compelling solutions. With over 45,000 satisfied customers who purchased HGI products, our organization only seeks to offer the best services.