An ERP implementation failure is a project that does not go live with the promised functionality or does not go live the way that management and stakeholders had anticipated.
Oftentimes, companies begin huge ERP projects, decide what they want, build out their systems, and start working on them. Then the vendors get involved to configure and implement. Then the company does some testing and training on the new product. Then comes more testing and configuration. And all of a sudden, the managers, owners, and stakeholders get involved and wonder what is going on. The project has gone on for far too long, and the people in charge don’t know what’s happening. This is an example of an ERP implementation failure.
There are a lot of stories about famous ERP implementation failures. There is a lot less information on how to prevent one from ever happening in the first place. Rather than focus on the tragedies, we prefer to provide the answers on how to avoid an ERP implementation disaster.
Implementation failures are due to: time, money, and scope. It’s important to note that all three of these factors are negotiable. You might not want to adjust time, money, and scope, but realistically, you are able to. Sometimes you need to adjust your original timeline, budget, and functionality in order to have a successful ERP implementation.
Another common cause of ERP implementation failure is an inexperienced team. You cannot go into an ERP project with the mindset of “if everything goes perfect, then we will be fine.” Not everything in your project is going to go perfectly.
You can’t treat your ERP project as an everyday endeavor. These projects take a lot of work and commitment. You need to establish structure for your team that is uniquely designed to fit the needs of the project. Not everyone in the company is going to have 20+ hours a week to commit to the project, especially the most important people in your organization. Assigning specific roles in the project is vital to success.
You need to be honest about the state of the project. Avoiding hard topics of discussion does not lead to a successful ERP implementation. If people don’t know that something is going wrong, how can they be expected to contribute to the solution? Honest communication is key.
With that, everyone needs to be on the same page about the project from beginning to end. A project will fail if people don’t know what their role is, when tasks must be completed, what the current project stage is, etc. Clear communication lines must be established so that different departments and individuals are aware of next steps.
In short, you must be flexible. Be flexible with the budget, timeline, and scope. Create wiggle room for your team by having extra money set aside (that no one knows about ) and prepared to be negotiable on your go-live date.
There are many mistakes that can be made in an ERP implementation. So, once a mistake does occur, how do you handle it?
Do an objective assessment of each of the functional areas of your company. Figure out where each area is falling short and make adjustments accordingly.
Data migration disasters can quickly lead to an ERP implementation failure. Prior to making your ERP selection, you must first plan the actions involved in migrating your data to your new ERP system.
There are almost always integrations, and you need to know the state of those integrations as the project progresses. Ask yourself: what integrations does this application need to function?
Do the users have the tools and machines that they need to run this? Determine the infrastructure and technology required to use the new application.
Years of experience has equipped us with the tools necessary to identify and treat ERP implementation failures. No matter where you are in your ERP project, we’re here to help. Schedule a consultation with us today.