Erp Implementation Challenges

ERP INTEGRATIONS:
• Knowing what processes or systems should be integrated, and which ones shouldn’t.
• It is difficult to know where integrating systems in an organization can gain a competitive
advantage
• Where it will hinder the organization’s workflow.
• Decision makers often don’t know fully what the ERP system is capable of when they’re
planning the system.
• Make sure you understand the value of each integration (and the cost).
SETTING ERP SOFTWARE
IMPLEMENTATION GOALS
• Without goals, your implementation is sure to be directionless.
• This can lead to even more challenges and frustration.
• These goals need to be defined at the outset of the project.
• You also need to put a process in place for adding to or changing these goals.
• Designate who your implementation team is at the beginning.
• Understand each team member’s goals and departmental needs by the end of the ERP
implementation.
CUSTOMIZATION
• One of the most often misunderstood issues with most ERP systems is the belief that they
typically require extensive customization.
• Often what a company is buying is not a packaged solution, but a framework with which
to build a solution.
• Understanding your ERP’s framework, and how it applies to your business will help you
uncover the best way to build your ERP solution.
• Avoid delays because of capability confusion and going over budget.
FLEXIBILITY CHALLENGES OF
ERP SOFTWARE
• Another challenge of an ERP implementation is dealing with the flexibility of your chosen
ERP software.
• An ERP system that is not flexible may force an adopter to change their business processes
to fit the ERP system model.
• This requires a re-engineering of steps needed to complete business tasks and retraining of
employees and business partners, sometimes even customers.
• As we all know, people inherently do not like change, and this will create resistance and
delays for any organization (at least in the short term).
• Be aware of how exactly your ERP will affect your business processes. Know what types
of changes you’re going to have to make, and prepare for them.
COMMON CHALLENGES
• Appropriate training is very essential
• During and after the implementation.
• The staff should be comfortable in using the application or else, it will backfire, with redundant
work and functional inefficiencies.
• Lack of proper analysis of requirements

• Will lead to non-availability of certain essential functionalities.
• This might affect the operations in the long run and reduce the productivity and profitability.
COMMON CHALLENGES
• Lack of Support from Senior Management
• Will lead to unnecessary frustrations in work place.
• Also, it will cause delay in operations and ineffective decisions.
• So, it is essential to ensure that the Senior Management supports the transformation.
• Compatibility Issues with ERP Modules
• Lead to issues in integration of modules.
• Companies associate different vendors to implement different ERP modules, based on their
competency.
• It is very essential that there is a way to handle compatibility issues.
COMMON CHALLENGES
• Cost Overheads
• Cost Overheads will result, if requirements are not properly discussed and decided during the
planning phase.
• So, before execution, a detailed plan with a complete breakdown of requirements should be
worked out.
• Investment in Infrastructure
• Investment in Infrastructure is very essential.
• ERP applications modules will require good processing speed and adequate storage.
• Not allocating suitable budget for infrastructure will result in reduced application speed and
other software issues.
• Hardware and Software Security is also equally important.
COMMON CHALLENGES
• ERP Vendors
• In this competitive environment, selection of the perfect product is necessary to achieve
productivity gains.
• There are over 500 ERP applications in market.
• While selecting the perfect ERP application for a business, one should know the vendor’s
previous projects, industry vertical and experience.
• Implementation Time
• Many companies don’t realize the time consumption of an ERP implementation process.
• An ERP system is implemented step by step and because it is very standard.
• It needs to be designed to a particular business, to handle the processes just the way the
company needs them.
COMMON CHALLENGES
• Proper Project Management
• Companies who want to implement the ERP system, need to assign their best employees for
successful implementation.
• Generally companies appoint external help as well but internal employees are preferred.
• Employee Retention
• It’s been observed that despite of training, many employees leave the organization after the
implementation of ERP system.
• This can immensely affect the growth rate of a company.
COMMON CHALLENGES
• Sufficient Testing
• Testing of ERP system doesn’t mean whether it’s working smoothly or not, but to be delighted
by it’s performance and to see whether it’s up to your needs.
• Insufficient testing of the system can attract costly unplanned updating.
• Investment In Internal Hardware

• Working on a slow system can be very unproductive and frustrating.
• ERP applications require sufficient storage and high work performance.
• Low investment in internal hardware may result in various software issues.
ERP RECOGNITION
ERP has gained recognition because of competitive factors,
• such as an ever-increasing number of mergers and globally aggressive rivals.
• A successfully planned and managed ERP system can increase customer satisfaction and
enhance employee productivity.
• It can adequately increase the company profits with minimum resources.
• It is very essential to bring onboard, an expert team of consultants. This will ensure the
implementation process is smooth without any glitches.
• Despite these challenges, an ERP is a resource that is here to stay. It can significantly
improve an organization’s workflows, business, and decision making.
• Doing it right is definitely worth the extra effort (and will most likely save you resources).

Erp Implementation Challenges

Uploaded by

Copyright:

Available Formats

Erp Implementation Challenges

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Erp Implementation Challenges

Uploaded by

Copyright:

Available Formats

ERP INTEGRATIONS:

• Lack of proper analysis of requirements

• Investment In Internal Hardware

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.