Most common reasons why ERP is not successfully implemented are improper planning, lack of communication, internal problems in the organization and poor data visibility. Sometimes ERP implementations cross the budget and delay the process instead of speeding up the process.
Enterprise Resource Planning has many advantages and helps in streamlining the business process of the company. But in some cases ERP does not deliver the desired results when it is not successfully implemented. Some of the most common reasons why ERP is not successfully implemented are lack of communication, improper planning, internal problems in the organization and poor data visibility.
The ERP implementation is considered failed when it does not provide the features it promises or there are delays in the implementation process. Sometimes the implementations cross the budget and delay the process instead of speeding up the process. This can lead to delaying of order deliveries and delaying the production process which can cause a big loss to the organization. Therefore it is essential that ERP should be implemented in the right and proper manner so as to eliminate the some common reasons for ERP failure.
ERP implementation takes a lot of effort, time and money and if these are not handled properly they can become the reasons why ERP is not successfully implemented. Most of the ERP projects take more time than scheduled to be completed due to which the cost also increases. There are many reasons why the delays happen and one may not be able to pinpoint any one reason. The most common reasons why ERP is not successfully implemented are as follows:
- Changes: If there is a change in the management or in the management procedures, it can cause delays. A number of changes have to be made in the automated system and take time. These changes are not easily accepted and cause problems.
- Communication/Coordination issues: A lack of communication or a lack of coordination is one of the most common reasons for ERP failure. The ERP implementation process involves a lot of people and it is essential that proper coordination and communication exists between these people. A proper understanding with the customer is essential for the proper functioning and lack of it can cause failure.
- Budget issues: Before implementing ERP, the budget needs to be defined for the various resources required for the new ERP system. If the budget is less or ERP implementation process exceeds the defined budget, it can cause lot of delays and become a failure.
- Customization issues: ERP can be customized to fit the requirements of the client. However, too much customization can become a problem and eliminate all the features of the application. The application may not be able to support the real time environment and turn into a failure.
- Lack of experience: Many people are involved in the implementation of the ERP. The consultants and the project manager have an important task and their roles and responsibilities are well defined. They need to be experienced in their fields for proper execution of the project. If there is lack of experience and dedication, it may lead to ERP not being successfully implemented.
These are some of the most common reasons why ERP is not successfully implemented in a company. Steps should be taken to keep a check on these points. These points should be taken into consideration while initiating the ERP implementation process.
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