Here are my two cents on ERP Implementation Challenges
ERP has become a popular option for many businesses since it maximizes profit, productivity and improves efficiency while minimizing costs over a long run. It is important to keep in mind that ROI on ERP Implementation is usually 4 (+-1) years.
When ERP implementation fails to succeed, it is not normally because of the software opted but because of poor planning. Involvement of senior management is always necessary for the success of ERP Implementation or as a matter of fact for any new initiative in the company.
The following are some common ERP challenges that should be addressed for a successful ERP Implementation.
Challenge#1: Planning for ERP
ERP system should be implemented step by step. A detailed plan will provide a business with a powerful boost on meeting deadline, priorities, phases, implementation methodology and scope of the work. Proper planning will not only help during Implementation but will also help the business for future support.
The process should be effectively organized starting with the appointment of a strong project leader. The appointed project leader will not only cater to requirements of the team but must also understand the overall value that implementation will bring to the organization. Moreover, a dedicated team within an organization should be made up of champions, who are very important for the success of ERP Implementation.
Challenge#3: Priorities, SMART Goals and Objectives
Setting priorities right from the beginning will enable the team to focus on goals and objectives. Goals and Objectives will set high-value targets to achieve, which in turn will not only minimize delays and accelerate time to complete tasks but also keep the team motivated to achieve the realistic goals and objectives.
Challenge#4: Coordination and Communication
One of the biggest challenges is communication, close coordination between departments (Inter/Intradepartmental) is not only necessary for ERP Implementation but serves as the backbone for success. In this case, stakeholders from across the organization should provide the required information, keeping in mind the overall benefit of the company, rather than their own personal ego.
Challenge#5: Benchmarking, Gap Analysis, and BPR
The phase possesses big challenge to an organization as this is the time to decide to achieve the excellence by benchmarking them against the outside world rather than depending on internal strengths. The process needs to be guided carefully as this provides a basis for an overhaul/change of the internal standards and processes.
Despite these and many other challenges, ERP is a resource that can improve decision making of any business.