When you invest a hefty amount for implementing an ERP solution in any organization for business benefits, a failure would be immensely painstaking. Statistics tells that companies have that tasted the bitter fruit of failed implementation. Almost half of the attempts follow the same path. However, it doesn’t reduce the agony and frustration because your hard-earned money is at stake. Experts say that there can be myriad reasons given for a failed implementation of ERP, but a few are common everywhere. When you are an entrepreneur who wants to make ERP a grand success, it is critically important to inspect these critical aspects beforehand.
1. Human element is the biggest contributor
There is unanimity in the opinion of all experts who know ERP implementation in depth that the human element is the most important. There are always certain organizational dynamics that encourage or discourage the implementation process. It determines whether you are going to enjoy a grand success or a total fiasco.
When there is encouragement (and involvement) from the top management, the enthusiasm percolates down. Otherwise, everybody feels that it is “somebody’s job.”As a result, “nobody” does it. Therefore, leaders in the organization should lead the show.
2. Classic waterfall model is destined to fail
There is a great fascination (rather an obsession) for the so-called “waterfall” model that goes in the long sequence of identification of the problem, analyzing the solution, arriving at the consensus of everyone and then picking the most appropriate ERP solution. Implementation, adaptation and refinement follow thereafter. No wonder, people get frustrated with it and lose interest very soon.
Since it takes so much time in implementing the same, many changes happen in the dynamic business scenario. Thus, there is again a gap between the expectation and the fulfillment. Since implementation team has a separate agenda and project plan, it doesn’t have time to look into the operational change. It leads to a disaster ultimately.
3. Scarcity of resources
A large number of experts blame scarcity of resources for a sure shot failure of ERP implementation. It sounds strange but true. In the majority of organizations, ERP implementation team works on a part-time basis. Since the team members are valuable operational resources, it is not possible to spare them full-time for this “noble” cause. They are forced to work on ERP, over and above the normal responsibilities. Moreover, there is no relaxation in targets or KRA. This approach is going to be unsuccessful; there is no doubt about it. When people are allowed to work wholeheartedly for ERP, they come off with flying colors.
4. Implementation without experts
Do you think ERP is something that can be implemented reading a DIY kind book? Certainly not! It is full-fledged software which needs a systematic way of implementation. However, in a majority of the organizations, the work is left at the mercy of a handful of operational and managerial people. They undergo a few weeks of training and organizations expect them to be ERP experts. A successful implementation is possible when a seasoned consultant is hired. He makes sure that it happens in a systematic and step-by-step manner.
5. Inertia for change
It is a common factor that organizations show a great resistance for ERP. It is because they feel that there will be a massive change in the organizational structure and workflow. As a result, the majority of people resist to it.
6. Picking up an inappropriate Solution
Last, but not the least; choosing an incorrect ERP solution is a major reason organizations fail to implement it. Therefore, a thorough analysis should be done before you choose the ERP in the organization.
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