There is no denying that an ERP project is one of the most difficult things a company can do. You need multiple parts of the company to work towards a shared goal while also juggling the day-to-day running of the business.
This reaches a crescendo when it comes to the ERP implementation, where the chance of disruption and failure are at the highest.
There are several reasons why an ERP implementation is a challenging task, with the following being some of the most common problems:
Lack of Leadership
Too often there is a lack of clear leadership which leads to unclear responsibility within the project teams. Who is in charge of different areas becomes confusing which leads to oversights and increased risk in the project.
With many stakeholders involved in an ERP implementation, it is vital that there is a clear leader in place. This should be an experienced project manager who will be able to ensure the project is progressing at pace. They will also be responsible for making final decisions and a clear point of contact for those working on the project.
Budget Constraints
Another problem that makes an ERP implementation a challenging task is the budget constraints. ERP projects are notoriously expensive from the cost of the software, to licenses, and time invested, the numbers quickly add up. The problem is these numbers often underestimate the amount of employee time needed for the implementation to be a success.
These budget constraints can add pressure to the project and often mean decisions must be made with where to cut costs. If project teams have too much to handle then it can lead to stress and burnout for those taking part.
Poor Communication
Without proper communication it is hard to get project teams on your side. Many will feel like they have the added work of an ERP implementation on top of their day job and might be resistant to the change.
That is why it is vital to share as many details about the project as possible. You want to get teams involved in the decision-making process and show them the benefit of going through the project. After all, the result should be making their job easier.
Incorrect Requirements Gathering
While the requirements gathering process takes place before an ERP system has been chosen, the effects of incorrect requirements start to be felt at the implementation stage. You may notice that a department has been mapped out wrong, with users missing key features they need to do their job. If these missing features are critical to the business, then it might require costly modification that the implementation teams need to handle.
Not only does this delay when the project can be completed, but it can also have a large impact on the budget. In the worst cases the system might not be fit for purpose and the entire project has been a waste of time!
Conclusion
To understand why an ERP implementation is a challenging task you only need to look at the number of areas where problems can arise. Now you know what to look out for you can prepare your next ERP implementation for success.
Want to take the stress out of an ERP project? Then get in touch with us, our team of ERP experts have experience across a range of industries and have successfully delivered hundreds of projects.