5 Challenges of ERP Implementation

ERP systems are by their very nature, challenging to implement. Typically, an ERP is a suite of integrated applications which collect and store data from a variety of operations within the business, with the ultimate goal of increasing efficiency. ERP systems provide consolidated financial and operational data to management teams, enabling them to get better visibility of performance throughout the organisation. It is precisely this cobination together of data from so many areas and individual systems that make implementing an ERP so complex.

Understanding these risks and prior planning in advance of an ERP system implementation are key factors as to whether your ERP project will be a success or failure.

Five challenges of implementing ERP systems

1. Data quality

It is imperative to get a single version of the truth with your data to ensure decision making is based on reliable information. The problem with data is that it can be inaccurate and contain duplicates, due to being stored in multiple systems and often, in slightly different formats. How do you know which data is the most up-to-date? To make sense of this, it is wise to do a thorough data audit before commencing an ERP implementation project.

2. Poor planning

The right people given the appropriate time and resource are key to successful ERP implementations. Think about who will lead the project and be responsible for overseeing the implementation, then the project team, the budget and staff resource requirements, the timeline for implementation, and what you want to achieve. When researching ERP software, think about the capability gaps of your current software and what your ERP options might give you in the short, medium and long term. It might be that you will not need all of the functionality your chosen ERP has in-built now, but do consider futureproofing your operations. The best ERP systems can revolutionise your business when implemented well for the next 10 years or more.

3. Not enough thought given to business processes

Don’t shoehorn your old processes into whichever ERP software you have decided to buy. Instead, take advantage of this change in technology to rethink your processes. Think of your ultimate goal and reinvent your processes with your new technology capability in mind. Don’t be held back by not thinking outside the box. Your new ERP system is a great opportunity to revolutionise your business operations and give senior management quality data to make better, more informed decisions.

4. Lack of buy-in within the organisation

Projects can fail, or at the very least, miss the prime objectives and deliverables, when there isn’t sufficient buy-in from leadership. At the start of your ERP project, it is a good idea to engage the leadership team in the scope of the project and the benefits. Make sure you communicate the wider business benefits that the finished project will bring. Also, how much resource will go into the project and any likely impact in the short term. Leaders play a crucial role in galvanising employees and communicating how everyone’s role will be key to the success of the project.

5. Too much change in one go.

To avoid overwhelm and any reduction in productivity, it might make sense to have a phased ERP implementation approach for your organisation. Ideally, you’ll want to include a period of testing, so consider implementing one phase at a time, such as your finance operations, testing thoroughly and then moving onto further phases.

Reducing risks of ERP implementation failure

To reduce any risks associated with an ERP system implementation, such as reduced productivity during implementation and ever-scaling costs, consider outsourcing to an ERP systems implementation partner to ensure your project meets its intended scope and deadlines.

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To explore how we can assist you, book a call with one of our ERP system implementation consultants.

We can help both implement your chosen ERP system, and also act as a bridge between you and your implementation partner to make sure the project is managed successfully and hits all its objectives, including project managing other software integrations alongside it.

if you've previously implemented NetSuite we can optimise your NetSuite system, to improve performance and make it work better throughout your organisation. Or if you are at the start of your ERP journey, we can help you find the best ERP system for you, for optimal financial management.

Whichever service you are interested in, book a no-obligation consultation.