6 Reasons why ERP Implementation Fail And How To Avoid Them

The practical and proper deployment of an ERP is not just a change; it’s a transformation that can revolutionize the entire structure of your business. Proper ERP Implementation services can bring about a drastic and positive change in the business flow – from Finance to shipping and logistics.

Given ERP’s transformative nature, even a small glitch can disrupt the business flow. Therefore, it’s crucial for any company to proactively plan and assess the risks associated with implementation. By analysing your business needs and choosing the right partners, you can take control of the implementation process and ensure a smooth transition.

An ERP implementation can fail for multiple reasons, from data migration issues to employee training. Challenges can also arise during or after the implementation, such as data discrepancies, unrealistic timeframes, and insufficient testing.

In this blog, we’ll examine the main reasons ERP implementation fail.

1. Incomplete Data

Problem

How to Avoid

Different stakeholders and shareholders hold data stored in multiple legacy systems across the business. Transferring such varied and huge data into a single ERP requires meticulous planning – cleaning up any unwanted data and duplicates, filling any gaps, and, most importantly, ensuring that every data is accurate and up-to-date. If there are any disparities in these areas, they will be challenging during ERP implementation. So, a company must check and validate important data before migrating to an ERP system. This process is time-consuming but can save your entire workflow from collapsing.

Perform a thorough data audit test to assess all existing data in the legacy system. Check its quality, consistency, and relevancy to make sure that only the essential data is transferred to the new ERP system

2. Unrealistic Time

Problem

How to Avoid

A new ERP is a very powerful tool that involves the entire company. Every department in the company, from accounting to warehouse, needs time to review, verify important data, and eliminate unwanted data before being transferred. They need adequate time to test out the functionalities of the new ERP system. If you rush the process of implementation, there might be incomplete migration, inadequate data.

Hold a meeting with all the stakeholders and develop a detailed project breakdown with an estimated time period for training, testing, and migration.

3. Not Training the Employees

Problem

How to Avoid

Employee training is essential to the success of an ERP implementation. The employee’s ability to grasp the new interface and work with the ERP will determine the success of an ERP system. Lack of adequate training will cause errors and frustration in the workflow. To prevent this, the company can create role-specific training sessions for employees. Once the ERP is installed, provide ongoing support through FAQ and user manuals.

Develop a tailored training program for all staff and establish a support system with user manuals and online resources. Providing easy-to-access help to the employees will improve efficiency and proficiency with ERP.

4. Insufficient Testing

Problem

How to Avoid

When companies do not prioritize conducting testing before implementing a new ERP, it might negatively impact the existing system or cause a collapse in the process itself. Testing can eliminate potential risks arising during or after an ERP implementation. So, make sure you create a detailed plan to test the system. You can test by including end users, or if the data is very vast, automated robotics will significantly help.

Ensure that you prepare various types of testing, such as integration testing, unit testing, and UAT (user acceptance test). Involve end users in testing, as they will help you identify key areas that might need improvement.

5. No Change Management Procedures

Problem	How to Avoid
Changing to a new ERP system is a transition process that involves the entire company not just the company but the people associated with it, like stock marketers and shareholders. Consistent communication and preparation will help everyone better adapt to change.	Keep your communication channels open—update your stakeholders through meetings, newsletters, or email. You can also create a team solely to handle communications with stakeholders and employers.

6. Overload of Customization

Problem	How to Avoid
Organizations should consider the long-term effects of customization, such as future updates and scalability. Some customizations are necessary to fit your business needs and scalability, but more than doing them will cost your business process heavily. Every ERP system gets an upgrade after two years; complicating your customization will extend the upgrade period.	Before opting for customization, you should evaluate the ERP system’s standard features to determine whether they meet your business requirements.

In conclusion, a successful implementation of an ERP system is critical to propel your business operations and drive growth. Hence, choosing a partner that understand your business needs is essential. We at Greytrix, believe that a well-planned and executed ERP implementation strategy is the key to unlocking the full potential of your business. Our expertise in ERP solutions and commitment to success means we are here every step of the way. Let Greytrix be your trusted partner in this journey of a successful ERP implementation that empowers your organization.