Why ERP Implementations Fail ?
Lack of commitment/interest from the Client’s TOP Management
The TOP Management has to ask all the different departments to work on their respective modules and provide them reports and data in computerized format from the ERP. If the management is not keen of taking updates / reports from ERP then the staff tends to neglect the ERP.
Lack of proper trained staff
If the staff of the organization is not properly trained by the ERP Implementation Team or if the staff does not take the ERP Training seriously then even the best of ERPs will fail. Also, the people who take the training needs to have clear orders from the TOP Management to work in the ERP, else they will not work even after training.
Lack of resources in the organization
ERPs need proper server, network architecture, security from viruses, Internet facility and a dedicated ERP Manager of the organization.
Internal resistance by employees to work on a new system
The management has to motivate the staff to work into a new and hi-tech environment as that is the demand of future. Once the staff comes live on the ERP then they too will appreciate the fast working with the ERP as it will make their work very easy and error free.
When a Bottom Up approach is used
The ERPs are to be viewed as a TOP Management Priority to keep all the departments in check and manage them in a centralized view.
When clients do not plan the future expenses
As the organizations grow the requirements of the ERP grows with time. Clients have to understand the charges of AMC, Customizations, additional onsite support after implementation etc. while purchasing the ERP to avoid confusions and confrontations later.
Inability to provide timely customizations and enhancements in the ERP by Vendor
All organizations are working under the rules and guidelines of the Government/AICTE/UGC or some parent body/University, these bodies changes the rules and guidelines for the organizations/businesses and so these have to be incorporated into the ERP too to make the organization ready for that change. The ERP Vendor should have the caliber and workforce to manage these changes in advance or with immediate effect for the client.
Lack of proper usage of some department
ERP Implementation is a race where everyone’s legs are tied up with each other. If one fails that creates problems for all. ERP brings centralization of all departments so that information can flow between departments easily. If some of the department(s) does not work properly it becomes problem for the others. It’s the responsibility of the ERP Manager to make sure all departments are working in tandem with each other on the ERP.
Wrong selection of ERP
If the organization is a University they should not buy a solution made for a College or School. The client and vendor both have to understand the fisiablity of the EPR in the organization before the deal.
Rome was not built in a Day
The companies developing and implementing ERP solutions have proper idea how ERP works. Many organizations feel that they themselves can make ERP Solutions by deploying a team of developers. It’s not impossible but such organizations make solutions which are very unique to their own style & comfort of working which hampers the standardization of processes. In such cases most of the ERP fails or what actually happens is that only few modules are made live, most of the modules are not made because of their complications and the organization gets in a mode where neither they are on a complete ERP nor they are without automation. ERP developing vendors like us make sure that all processes are on standard format as per the industry and are updated time to time as required.