Biggest Challenges in ERP Implementation: Eye-openers!
ERP implementation unquestionably is a challenging process. Plus, getting it wrong is no less than a nightmare for any business. Thus, it is advisable to keep ERP implementation under proper control for a smooth and successful embracement of the same all across the organisation.
Here is a checklist of some of the biggest challenges faced by businesses of all sizes when implementing ERP solutions.
- Selection challenges: When deciding to have an ERP solution on-board, the foremost question to pop-up in the heads of managers and CXOs is to decide the type, scope, scalability and size of the ERP software as well as ensure that it suits the company’s budget, preferences and industry needs. Then follows a streak of consulting and research work to find the best ERP software. This hurdle is faced by all businesses and it needs to be addressed with a sound and insightful approach. ERP is not an instant thing, and as it has a great impact on a business for years to come thus, being cautious from the start can save businesses from remorse.
- Technical challenges: Post selection comes the technical roadblock, which might summon for revamping servers, workstations and other traditional management systems in an organisation. In fact, the entire internal network needs monitoring and inspection to check for compatibility with the soon to be implemented ERP software. Overlooking these technical aspects might result in a huge disaster hindering smooth use of the system. Sage Software Solutions Pvt. Ltd., a leading provider of business management solutions to SMEs and start-ups in India suggests going with a SaaS (Software-as-a-Service) ERP software for SME, since it is budget-friendly and hassle-free.
- Data quality challenge: It is one of the common challenges for companies that are plunging in for the first time, i.e. first time ERP implementation. Here, businesses reinstate a legacy enterprise resource planning system with a modern and advanced ERP solution. Here comes the big hurdle, data generated through legacy system might not be compatible with the new system. This calls for ample of project planning well before the actual implementation to avoid the legacy vs. new system tussle. Meticulous project planning before rolling out the software gives a clear picture of all the potential modifications that the system would require to work seamlessly. Sage Software advises to always a conduct a pilot test of the software before actually getting it on-board.
- Managerial challenges: ERP implementation triggers substantial changes in an organisation’s traditional business conducts, model and practices. With a new ERP system in place, information keyed-in by one user is instantaneously available to other users, and that too in real-time. This greatly lifts the responsibility bar for every user. Thus, there is a strong need to introduce new managerial practices and principles. Also, steps should be taken to revamp or revise existing practices and make them compatible with the new system. Though it is one of the serious challenges, it renders a fantastic opportunity for companies to get rid of conventional business practices to pave way for a quick and intelligent enterprise resource planning solution.
- Psychological challenges: This is the most difficult challenge to overcome. Since humans are resistant to change, there would be questions, issues and many hesitant or disinterested faces in your company to embrace the newly implemented ERP system. In fact, it becomes difficult to predict every potential concern or difficulties in this regard. Thus, it is advisable to rope in every employee right from the start i.e., from planning to selection of the ERP solution. The best a project manager can do is to keep employees excited about the system in advance explaining the benefits of how it can make things easier for them. Further, having one-to-one communications can help in curbing the ‘resistance to change’ epidemic within an organisation to a significant extent.
So now you know about all the biggest challenges that play spoilsport when it comes to a smooth and company-wide ERP implementation, it is time to mull-over these roadblocks well beforehand and equip yourself with all that is needed to steer clear these barriers.
To learn more about smooth and seamless ERP implementation for start-ups and small or mid-sized businesses, SMS SAGE to 56767 or click here.