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5 common issues with an ERP implementation (TechTarget)

ERP implementations can face several common issues that may delay go-lives or lead to lawsuits, including poor vendor selection, lack of crucial team members, unplanned project costs, lack of change management, and lack of integration. Addressing these challenges requires careful planning, collaboration, and proper training to ensure a successful implementation. A well-executed ERP implementation can result in streamlined processes and increased revenue for organizations.

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20 views2 pages

5 common issues with an ERP implementation (TechTarget)

ERP implementations can face several common issues that may delay go-lives or lead to lawsuits, including poor vendor selection, lack of crucial team members, unplanned project costs, lack of change management, and lack of integration. Addressing these challenges requires careful planning, collaboration, and proper training to ensure a successful implementation. A well-executed ERP implementation can result in streamlined processes and increased revenue for organizations.

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jkskjk
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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5 common issues with an ERP

implementation
ERP implementations are complicated processes that can easily go
awry. Learn about some of the most common issues and ways to avoid
them before they occur.
https://www.techtarget.com/searcherp/tip/Common-issues-with-an-ERP-
implementation
By Reda Chouffani, Biz Technology Solutions
Published: 28 Aug 2024
An ERP software implementation can be a challenging process for any
organization. Learning beforehand about some of the most common issues that
occur can help company leaders prevent the problems from happening at their
own organization.
Problems with ERP implementations can delay software go-lives and in some
cases even lead to lawsuits. Successfully navigating these challenges requires
careful attention to detail, a commitment to change management, proper
training and the right partners, both internal and external. A successful ERP
implementation can lead to benefits like streamlined processes and increased
company revenue.
Learn about some of the most common ERP implementation problems.
1. Poor vendor selection
The ERP software vendor's role goes beyond the technical aspects of an
implementation.
The most critical resource that an ERP vendor can provide is their experience
with software implementations, including best practices, pitfalls to avoid and the
best processes to follow. Project team members should consider the vendor's
experience and the types of companies that the vendor has worked with in the
past to ensure the vendor is the right fit.
2. Lack of crucial team members
Any project involving multiple departments requires strong collaboration, and an
ERP software implementation is no exception.
Including the right representation from each company department is critical,
and all team members must be aligned on the project goals. A common reason
for a failed ERP implementation is lack of collaboration among team members, so
the project leader must ensure their team includes employees from the needed
departments as well as employees who will work well together.
One of the most important team members to add to the group is a project
manager who has experience with ERP implementations. A project manager will
ensure the team meets deadlines and is adhering to project requirements and
the planned budget.
3. Unplanned project costs
Unexpected costs often arise during an ERP implementation. Some of these
unexpected expenses can include customization costs that were not previously
accounted for, hardware costs and integration costs.
The project leader can avoid surprise expenses by defining the scope of the
project early on and encouraging team members to consider whether
customizations are truly necessary.
4. Lack of change management
One of the most critical steps of preparing for an ERP implementation is clearly
defining the system functionality and mapping it to existing business
processes at the company.
Documenting business processes prior to the ERP implementation will help the
process run more smoothly and make it easier to carry out change management
at the organization. Doing so will also potentially improve training, as the
implementation team will already have made clear how the new ERP software
will fit with current employee tasks.
5. Lack of integration
Some companies must use other programs to augment their ERP software's
capabilities, and using an ERP system that can integrate with other software can
help eliminate duplicate data entry. Some of the systems commonly integrated
with ERP software include CRMs, HR software, transportation management
systems and e-commerce software.
Lack of integration capabilities can lead to a failed implementation and
dissatisfaction from employees, as lack of ERP integration with other company
tools will likely make workers' tasks more difficult to carry out.
Reda Chouffani runs the consulting practice he co-founded, Biz Technology
Solutions Inc. He is a healthcare informatics consultant, cloud expert and
business intelligence architect who helps enterprise clients make the best use of
technology to streamline operations and improve productivity.

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