Avoiding ERP failures – Key considerations and Globalteckz reviews on SoftwareAdvice book Previously on this blog we covered the topic Enterprise Resource Planning Software BuyerView | 2015 which was crafted to ensure the key considerations to undertake before buying any ERP software.
How to Avoid ERP Failure: Success Stories and Key Considerations new book from softwareAdvice which detailed every key considerations to avoid the ERP failures. As we discussed in our previous blogs also that ERP implementation is difficult until you don’t have proper team and vendor experience.On the other hand Successful ERP implementation offers fruitful result to an organization. There are various challenges that come in path while adopting new ERP software in a business and it is a team effort of employees, project managers, Vendor, key people that make ERP software implementation successful.
This book by software advice analyzed 22 failed implementation projects from different companies which tends to provide the most common reasons for ERP implementation failure – Being in discussion with Software advice team we felt to showcase those points to our readers just to ensure this piece of article will act to avoid basic mistakes during the planning of ERP software implementation
Read our Article – How Consultants help successful ERP implementation
Why ERP implementation fails in an organization
SoftwareAdvice book broadly classified these 6 key goals which is as follows
• On-time implementation
• On- or under-budget implementation costs
• Minimal disruption to business operations
• Improved organizational efficiency
• Reduced operating costs
• Increased sales or revenue
We agree on almost every points but would like to shed more light on On-time implementation – As per our experience we have always said that “ERP implementation is not successful if you put the project completely on the vendor”– It is your team who work together with the technical and functional experts to make the implementation successful – further timeline stretch for an ERP implementation can increase your project cost as well as the expectations. On time delivery of the project can only be happen if the organization freeze its requirements properly without new changes in the mid of development.
One critical thing to understand is that “ERP Failure or implementation rarely fails because of the software itself.”
From the above point it is clear that it is just the vendor experience, resource allocation, requirements documentation, methodology and so on . . .
Most Common Reasons for ERP Implementation Failure
Few common reasons for ERP implementation failure based on the research by SoftwareAdvice was
- Poor change management
- insufficient efficiency
- consultant issue
- poor governance
- vendor issues
- behind schedule
- over budget
- buggy software
- shareholder revolt
- economic issue
From the above the most common reason for ERP failure is poor change management – At Globalteckz we always discuss with our clients – “ERP implementation are not successful when the vendor complete the development, It is when Organization start using it” and one of the major areas of concern is the poor change management including poor training and understanding the capability of tool, software crafted based on High level management advice and not keeping up lower level of employees who are the actual users in discussion during ERP planning and requirement gathering.
Read our Article – How to select Best ERP Software for your business
Best Practices for Avoiding ERP Implementation Failure
- There are many important points covered in the book which offers best practices for ERP failures – we would like to shed light on few of the practices that can be important
- Make sure that the lower level of employees are properly trained with the new ERP system
- ERP is not one day or one month job based on the requirements ERP implementations may take 1 year also, create a realistic project plan and timelines to ensure things are moving properly
- Involving your IT team will make sure things are moving quite fast as we always said that the successes of any ERP implementation come from the effort of vendor as well as the client.
- Before selecting any ERP solution get clear on your goals on what you need – don’t add extra requirements which is of no use in the initial phases of the development as it will just increase the price and timelines of the project.
Read our Article – Why Web based ERP software is preferred mostly
At Globalteckz we believe in Quality and timely delivery of every ERP projects we undertake, be it manufacturing or trading or customized ERP software development. We always proven with our successful ERP developments. Our team consist of Experience ERP developer and Project lead, Functional experts and so on . . If you are a small business owner you can take advantage of one of the leading Open source business software that comes with variety of modules that can be implemented for your small business – Odoo – formerly known as OpenERP is a web based business application that helps you to manage sales, CRM, warehouse, Accounting and if you fall into specific vertical or industry you can implement specific modules that can be chosen online from the community
Odoo implementation for small and mid sized business is cost effective and requires very less time – you can contact our sales team for more information on Odoo development – firstname.lastname@example.org
Our Articles for Enterprise Resource Planning System
- How ERP software helps in Supply Chain Management
- Odoo ERP Software Development Methodologies
- How to Implement ERP Software Successfully?
- How to evaluate Manufacturing ERP Software and Vendors
- Manufacturing ERP with Odoo Software
- How ERP software helps in Quick Decision making
- When to replace your existing ERP software ?
- The Impact of an ERP software on Purchase Department
- Boost your Company Profits with Enterprise Resource Planning Software (ERP)
- Benefits of Using eCommerce ERP software
- Timeframe for New ERP system