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ERP Implementation Fails to Avoid

ERP implementation is a critical stage that includes data migration and integration process, user training, and finally testing and go-live planning. Many may find it a daunting task but ERP implementation fails can be avoided by adopting a methodical phased approach for deployment. <br>

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ERP Implementation Fails to Avoid

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  1. 5 Reasons For Moving In-House ERP To The Cloud ERP Implementation Fails to Avoid

  2. Introduction ERP implementation is a critical stage that includes data migration and integration process, user training, and finally testing and go-live planning. Many may find it a daunting task but ERP implementation fails can be avoided by adopting a methodical phased approach for deployment. According to the analyst firm Gartner, 75% ERP implementation fails due to many reasons that we will discuss in this blog. Here, failure doesn’t mean that ERP never goes live. It means – costs are exceeded remarkably, the schedule is not proper and improvements/customizations done by the team do not meet the expectations.

  3. 1.Inadequate planning You should know what you need from an ERP. Not every ERP vendor wears multiple hats, therefore, it is better to convey what you require from the software and what are the challenges that you are facing in the company. ERP solves an array of problems. It is a must to identify the objective before getting the implementation done. Sharing your thoughts about ERP requirements with the vendor is always a good idea. One of the researches by Panorama states that 61.1% of ERP implementations take more time than expected and 74.1% ERP projects usually go beyond the actual budget.

  4. 2.Massive customization No organization is alike. Sometimes, many organizations seek more industry-specific features that can fit their business needs. It is true that customization becomes unavoidable at some point of time but customizing a standardized feature can be dangerous too. For example, ERP can be customized to get integrated with CRM, Accounting or Finance module which is not available out-of-the-box in a generic ERP.

  5. 3.Lack of change management Change is constant. ERP implementation brings a huge change in the organization and there may be a possibility of someone showing resistance. End users have to learn new ropes, work on new system where the UI will be different and processes will be new. To accommodate this transformation while sustaining the performance, it is imperative to embed changes in the users to anticipate and mitigate resistance.

  6. 4.Unrealistic expectations Many ERP vendors lowball the ERP implementation cost and time. Organizations expect that they will have to pay the cost quoted by the vendor. However, this is not the case. The cost and duration of implementation most often go up compared to the numbers assured by the vendor. How to avoid: Evaluate the ERP deployment done in a similar organization and ensure that your scope is wider. Costs included in training your staff, bug fixes and customization can be a little higher.

  7. 5.Improper Ongoing Staff Training After an effective change management technique, it is a must to provide comprehensive ERP training to the end-users so that they can become comfortable with the new way of managing business processes. How to avoid: The success rate of ERP implementation rises when you provide comprehensive training to the end-users. The project heads and managers should have the understanding to carry out testing and manage the software in a planned manner.

  8. Conclusion Ensure that you choose a vendor who’s focused on an equipped plan and who endeavors to offer the best services for a successful ERP implementation. ERP implementation is a long and complicated process, but you can avoid mistakes and get back on track if you lose focus. OptiProERP empowers you to improve the efficiency of your manufacturing operations. Discover true value with predictability and transparency in your business. An affordable, reliable, complete Manufacturing ERP Software, OptiProERP, makes the complex simple.

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