4 Problems When Trying to Implement an ERP System

ERP (enterprise resource planning) solutions are highly complex centralized programs that integrate and coordinate different processes throughout a company. They help organize human resource and product management, streamline transactions, and improve customer service overall.

As advantageous as ERP programs are, however, surveys reveal that nearly half of all first-time ERP implementations fail. The cause behind this concern has less to do with the ERP solutions themselves and more with the implementation of said programs. Some of the common problems businesses experience include missing deadlines, going over the budget, and not meeting expectations.

Learning the main concerns in ERP implementation can help companies prepare accordingly. By doing so, they can make the most of their resources and ensure a smooth transition to ERP. Without further ado, take note of the following problems that enterprises encounter when installing an ERP system.

Absence of ERP Expertise and a Dedicated Team

Firstly, ERP implementation is a significantly huge undertaking. There are many things to consider and multiple steps to follow to complete the project. As such, it is critical to assign a team dedicated to finishing the project successfully. Without one, companies risk lack of communication, consequent delays, and overspending as members set aside the ERP project to attend to their day-to-day responsibilities. After all, business operations still continue even when deploying an ERP software.

The number of people in the team can vary greatly depending on the scale of the project. The foremost thing to remember is that each team must have an ERP expert and an experienced company member who knows the various processes across different departments. The ERP solutions provider usually appoints an ERP specialist to guide their clients. To implement the program correctly, however, the team also needs somebody who is familiar with the workflow of various company departments. As such, the team can pinpoint inefficient workflows that can be improved with ERP.

Poor ERP Planning and Milestone Setting

Reaching one’s destination becomes easier when one knows where they are going, and this idea also applies to ERP implementation. Several factors can influence the course of ERP deployment, so company management and the dedicated team must set concrete goals for the project. Some questions that need asking include: What does the company hope to achieve with ERP? What are the practical steps they can take to accomplish that? How will they measure the success of these achievements?

Having a concrete image of what a successful ERP implementation looks like will not only help guide the entire process, but also helps the company set its expectations. Consequently, the business can set proper milestones that serve its mission and vision and make the most of its investment in an ERP solution.

Overlooking Data Migration

Some businesses mistake ERP software for a magic button that will instantly solve all their problems. However, ERP solutions are tools, and they only work as well as one uses them. This is especially the case when it comes to data input and accuracy. If the data in the old database is repetitive or incorrect, transferring them to a brand-new ERP system will not make them right.

Hence, institutions must not underestimate data migration and, instead, take this period as an opportunity to set their databases straight. Search for repeated data entries, inaccurate numbers, or old information that needs updating. By doing so, companies can ensure that the information going into the new system is error-free and reliable for use.

Insufficient Preparation for Employees and Other New Users

Installing an ERP system introduces a significant change in how things work around the company, and unfortunately, not everyone will be on board with that. Some individuals may prefer to stick with the processes they have gotten used to, even if these methods are already inefficient. Thus, to ensure that employees use the new system to the fullest, it is important to get everybody on board and help them embrace the new change. Accomplish this by informing them firsthand of the upcoming project and holding seminars and training workshops that will get them accustomed to the new platform. At first, it may be difficult for others. With enough practice and transparency, however, employees will get used to the new system over time.

Indeed, implementing an ERP system can ushers in a period of transformation, which can be daunting and confusing to navigate without the right help. Fortunately, companies can rely on solution providers like ANSI, who are well-versed in ERP programs and experienced in their implementation. Having helped both Philippine and foreign-based businesses, ANSI has the right tools, methods, and personnel to help growing companies find their footing in ERP. For more information, contact ANSI Information Systems, Inc., today.