Success and Failure Factors of ERP Implementation
Statistics show that an estimated 75% of ERP projects fail. This statistic is a very frightening one. An ERP Failure does not mean that your plan doesn’t go live and that you are not able to operate. Failure could mean a wide range of things, these may include.
Lack of Management Participation
One of the significant failures for an ERP implementation is the lack of backing from management. An ERP implementation is a very complex and in-depth process, and you need to ensure that everyone in your organisation is involved and participating to guarantee that your ERP implementation is a priority. Or there is an increased chance of delay or failure.
Lack of Planning
Without a sophisticated high level, advanced planning phase, your organisation can have the wrong assumptions and ideas. Or even underestimate the amount of change your business will experience. Without proper planning, due to the complexity of the software, the plan for a successful ERP implementation. As a result, details need to be specific, detailed and realistic or your company is at risk of a failed ERP implementation. Without that planning, you can be lead to unrealistic expectations.
Once meeting with your vendor regularly, they will provide your management with the details. Ensuring they are aware of what processes it can enhance after an implementation. Realistic expectations are something that needs to be discussed early on in execution to make sure that management knows what benefits an ERP system will offer their organisation.
Microsoft Dynamics 365 is very customisable, with thousands of add-ons and modules you can integrate from AppSource. However, Unfortunately, some businesses try to Over-customization which means increased cost and time spent on, integrating and customising the ERP. It is essential that before beginning an ERP selection process. The business processes that need to be improved need to be discussed and a plan in place to avoid an implementation failure
Lack of Training
Even if you have planned out well, you know your expectations and are using a standardised ERP system. To Clarify without in-depth user training, or with delayed user training far into the implementation, there is a potential for failure within your business. Businesses leave user training to the end of the project because they are so focused on other aspects. By engaging your employees early within the process, regardless of what department they work in, they will be able to learn basics and have a better overview of the system. Therefore by allowing them time to train and get used to the software.
At DFSM Consulting we are renowned for successful implementations. As we ensure that our clients have a broad understanding of what entails in an ERP implementation to ensure both parties are equipped.
With the right information for a successful implementation. At DFSM, we allow your organisation to take ownership of the ERP Project rather than just receiving another product from any vendor.
If you are concerned, you have a failing ERP implementation; we can provide you with a strategic planning session to discuss options and solutions. Contact us Today for more information about ERP implementations.