ERP is comprehensive software that runs your company efficiently. The biggest challenge is getting it properly implemented. But a great correlation has been found between the problems that result in frustration in the selection process and the issues that can foil the implementation. Some of the widely witnessed implementation factors that have often derailed the overall ERP project, leaving the business in lurch, have been discussed in this post.
Let’s have an insight what those aspects are that can derail ERP implementation.
- Unclear Objective
- Lack of Accountability
- Improper Resourcing
- Scope Creep
- Inadequate Change Management
Unclear Objective
Clarity in the ERP goal is of the essence. It may lead to even more conflicts on the goals. Failure to streamline the objective prior to starting the project will ensure that you will fall victim to scope creep.
In case your vendor is professional they may lock down the scope early, ensuring that they know how to success, thus protecting you. You also need to terminate all the assumption that you may have made in the sales process about what could be included. Better get the objectives documented and well evaluated before you finally sign contracts otherwise there is always a possibility of scope creep as your expected scope will be wider than the vendor’s.
Lack of Accountability
Ownership of any project has to occur at every level of the organizational framework, but it must be taken forward in word and action both by the leaders who are at the top of the pyramid.
Understanding the executive ownership is very vital to every company for effective implementation of the project.
Improper Resourcing
After having your goals clear before you and once you have nailed down your project scope – what comes next?
Involving the right people in the project after relieving them from their regular work to devote time to the implementation is difficult but essential. The ground reality is that the resources you need to work on the project are the people who are running your business now and they are already damn packed with a full week’s work.
A methodology design workshop conducted in the absence of right people involved is an absolute disaster and just a waste of effort, time, and money.
Better do not start the project in the lack of right people to work on this project. Finally if your business is seasonal in nature or depends on repetitive boom/bust cycles you must draw a down cycle to keep your executive busy on a business morph projects. Earning enough revenue when times are good is very important, so that in the next down cycle you can keep your executive busy in ERP project.
Scope Creep
The scope creep can be your biggest enemy. You might have an undocumented variation to your project plan that can add a week and $15,000 to the cost impacting other stakeholders or the expanse. It is very much possible. It may happen anytime, if it is not aggressively managed initially.
Inadequate Change Management
People are usually averse to change, which is threatening at multiple levels. An accurate and effective change management should be in place to streamline the work processes before attempting to implement and automate them in the new system. Implementation of a brand new ERP solution is an excellent opportunity to terminate current business processes. Are your people and executives ready to digest this wider change in the day-to-day functioning?
To make your ERP implementation successful, you must ensure:
- Be focused on results to understand what your goals are and what success looks like
- Ensure each one of your team has clear vision of project goal
- Make sure scope is efficiently and aggressively handled
- Ensure that impact of change on the people and processes is planned and organized
Nonetheless, all these are not that hard actually when you think about it clearly. Aligning all the aspects and factors with the project goal is the core behind a successful ERP implementation. Having a great plan and right implementation process can create almost anything on it as your business evolves.
