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ERP Failure – 7 major ERP problems during implementation

An ERP implementation is always considered as one of the most important software for any organization. wE have personally seen that businesses don’t take a single shot of risk during ERP implementations just to avoid failure and problems. Although there are many organizations who make common mistakes which can be avoided easily prior to ERP software implementation. ERP implementation is vast which can create success to business if implemented correctly else improper ERP development can cause drastic failures. There are many companies who already burn their fingers with ERP failure.

Why ERP implementation fails/ Problems with ERP? 

  • Expectations from an ERP Implementation :

One of the first questions we asked to our clients is What is your management expecting after implementing this ERP software.” – If we feel that client expectations is incorrect than we set the proper expectation after ERP implementation. Unnecessary expectation is one of the most important reason for ERP implementation failures. It should be properly defined by the top management on what returns they would gain after ERP implementation.

  • Time & Resource Estimations

This is another common mistake done by both vendor as well as the clients. My personal experience is that there while preparing the estimations for ERP implementation there is a big clash –

“Since Clients feels that a new feature can be implemented in few days time, although they are close to the estimations but a single new feature customization can sometime ruin the whole timeline of the project as every part and fields are interconnected to other application or module.”

Apart from that many companies create unrealistic timelines based on their management decision. Therefore it should be remember that an Experience vendor is quite aware of the timelines rather the client who is implementing for the first time. To resolve this problem a proper scope document should be created with a project plan and resource allocation before going to the actual implementation part.

  • Creating a Legacy system out of An ERP :

The globe of industry is changing every day with best practices and Excellency in working. While implementing ERP solutions Businesses stick to their own processes rather implementing the new best practices available and therefore ERP software is so much customized that they end up implementing the old legacy system.

  • No Proper IT infrastructure

There are many businesses that put so much of concentration on the software or ERP implementation part that they forgot the IT infrastructure, support, performance and most importantly the Hardware cost. Therefore IT infrastructure is one of the most important point to be consider before implementing ERP software.

  • Proper Vendor Selection

Not selecting Proper vendor is another important mistake organizations do. Checking beautiful vendor website, with list of the names of their clients, their top rankings in Google will not help you selecting right vendor.

The first thing you should check is to know say for eg: Out of 30 clients how many are actually using the software.

My personal Opinion is – “If the client is not using the software, the vendor failed to implement it.”

Proper questions related to ERP implementation and their experience should be asked, and most importantly the reference check – many forget this just by getting the confidence from the website.

  • Implementation of Unwanted Functions

“Human wants are unlimited” you show them the features in ERP software and they will ask for addition and estimation in the task or pricing which vendors also agrees due to increase in their project profitability. This is one of the biggest and silly mistakes done by organization. To avoid this situation organization should start with important module first dividing the projects into phases as per the importance.

We at GlobalTeck offer you with one of the Leading open source ERP implementation – Odoo. We have extensive experience in working with many businesses and implementing ERP solutions successfully. Visit our website www.globalteckz.com for more information

About Globalteckz as an ERP Vendor 

Our Team at GlobalTeckz offers you with best services for every project we undertake. We not only ensure successful implementation of your project but also ensure to work with clients as a technology partner rather than a Vendor offering end to end services.

Our Business Software and Enterprise Solutions ensure smooth working of your Business Processes. We consider every client is important for us and henceforth offer 100% quality with experienced team on every single project.

We offer various services such as Enterprise Resource Planning Software – ERP, eCommerce Website Development, Search Engine Optimizations – SEO, Joomla website Implementation, Designing and so on.. Our Development Team is based in India, and have provided many successful solutions to our clients across the globe. We work in multiple time zones as per the client’s requirement to ensure smooth communication and implementation.

For any Inquiries – email us on sales@globalteckz.com

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