The Common Signs to Watch ERP implementation failure

An ERP implementation can quickly get into a disaster if you don’t give a heed to warning signs. It’s true that ERP failure doesn’t happen overnight. They are a culmination of series of seemingly small wrong steps and decisions. Small and medium sized business rely on SAP Business One ERP to keep their business operations running smoothly. Without a smart and robust ERP software in place, it becomes a real hassle to keep a tight hold on inventory, monitor purchasing process and take a significant leap forward in efficiency.

In this blog, we will explore some early warning signs that your ERP project may be on the verge of facing some major bottleneck.

Let’s take a close eye to detect early warning signs that an ERP implementation might suffer.

  1. Unrealistic Implementation Project Timeline, Budget, and Resources

You must be in a dire need of an ERP. Well, understood. But, for any project to be successful a realistic implementation, project timeline, budget and a right ERP vendor is what you should aim for. Often, expectations were set unreal so it’s important to add a dose of reality.

  1. Lack of Involvement from your executive team

Involve your users from the beginning. Your resources are your most precious gift so it’s advisable to show some empathy towards them and involve them in your ERP vision. One of the best way to engage your team members is to explain how ERP can directly impact their life. If users are not taken into account into process change, they are likely to resist since human nature tends to resist change.

  1.    High reliance on excel and spreadsheets  

Microsoft Excel may be the largest and informal ERP system in the world. However, if users are routinely using Excel to carry out analysis, your ERP project has problems.Excel as universal workaround may suggest that your reports and data aren’t set up in a user-friendly manner. Users may also have a need to review data from multiple services to achieve their goals. To address this concern, ask users which Excel files they routinely update and refine each month or each quarter. That will help you identify improvement opportunities for the ERP.

Microsoft Excel is routinely used by every business user. However, if users are routinely using excel to carry out analysis, your ERP project may suffer. Excel is no doubt a great tool which you can help you derive reports and perform analysis.

  1.    Project manager with a lack of direction & accountability

For any project to be successful, project managers should be responsible for managing all components of an implementation. This includes project governance, team performance, communication skills and evaluating risks and more. It order to manage all these responsibilities, project managers should know they are accountable for it and need to be passionate enough to reach their project goals faster.

  1. No Business Case or Benefits Realization Plan

You can’t achieve what you don’t measure. Therefore, it becomes critical to have a business case and plan ready as how you intend to achieve the expected business benefits from the ERP investment. Your business case should be clear so as to justify the investment in new software.

While these 5 things don’t necessarily guarantee success, they can ensure that you avoid some of the common pitfalls that many organizations fall prey to.

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