ERP implementation requires a lot of time, effort, money and proper planning. The organization has to plan and do a lot of research before starting implementation.
ERP implementation requires a lot of time, effort, money and planning. The organization has to plan and do a lot of research before even going in for the implementation. If proper planning is not done before and during the process, it can result in errors in ERP implementation and lead to failure of the system. Implementation failure is a major concern for the organizations since a lot of investment is involved.
The ERP package chosen should be right for your organization and the implementation process should be done in the right manner so that there is no scope for errors in implementation. Coordination between the team members is essential to ensure a smooth process. The risks and errors in ERP implementation should be reduced to the minimum.
Some of the factors that lead to errors in ERP implementation are as follows:
Insufficient resources: Lack of resources or insufficient resources required by the ERP software can lead to failure. The system needs a proper infrastructure and other resources for its successful implementation. To avoid errors in ERP implementation and ensure a smooth process, there should be sufficient resources available.
Improper project management: The project has to be managed perfectly and there should be no scope for errors in ERP implementation. The project manager chosen should be experienced to be able to plan out the requirements. He should be able to handle and plan out everything in a proper manner. If there is improper management, it will result in no coordination and poor execution of the project. The manager has an important role to play in the implementation process as he has to look after many things. He also acts like a mediator between the customer and the vendor. He has to coordinate well and ensure the work is done properly by the consultants employed.
Excess customization: The ERP system is often customized and altered to suit the requirements of the business. It is customized to fit but too much of alterations can change the ERP software totally and result in a failure. A little customization is helpful but too much can lead to errors in ERP implementation.
Poor involvement: It is necessary for the top management to be involved actively during the implementation procedure. They have the responsibility to coordinate and tend to the needs during the process. If there is poor involvement or no involvement, it can lead to delays and eventually into a failure of the ERP implementation. To prevent these errors in implementation, it is essential that the top management interact with the vendor in order to be aware of what is going on and to be able to take right decisions on time.
These are some of the errors in ERP implementation which occur if care is not taken. Since Enterprise Resource Planning implementation requires so much of investment, it poses some risks too if not implemented in the right way. Therefore it is important to consider the above points to ensure a successful implementation and avoid the errors in implementation.
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