Considering a new ERP for 2022 and want to guarantee success? Enapps unveils the top 7 reasons why ERP implementations fail globally and how to avoid them…
Did you know that the failure rate of software implementation sits at a staggering 60 to 80% globally? Why? Because a new major software implementation is a complex process and there are risks. Luckily the experts at Enapps have years of experience and can ensure you avoid these potential dangers.
To educate you on these must-know points, our team have put together an ERP failure checklist containing SEVEN key points to give you the power to avoid these mistakes and guarantee your ERP software is a success.
Seven key points of failure | Checklist
1) Change Management
An ERP implementation is a significant investment AND a major change programme. It affects the whole business and will require employees to change the way they work, even in a small way. The change has to be led from the top and thought through. If the executive team are not celebrating, embracing and leading the change, the employees are unlikely to adopt the system with enthusiasm and intent. For such an expensive and transformative business decision, this challenge is an important one to get right.
2) Picking the wrong partner
Reputation, case studies, affiliations, awards and comfort zone anxiety can all be reasons to consider an ERP company, but they shouldn’t be the definitive reasons to select one. Thorough research, asking questions and taking the time to understand which software platform and implementation team will deliver best for your company will guarantee you are confident when choosing the right partner. Knowing who you’re working with and what they can offer you is one of the biggest secrets to a successful ERP implementation.
3) Losing the bigger picture
With so many challenges within a business to solve and so many solution options, it can be tempting to focus on one area of immediate change and lose sight of the bigger picture – the main reason for introducing an ERP database in the first place!
For instance, desire for efficiency within the finance department can often drive a new ERP and tools within a module can quickly solve issues, but understanding the knock-on effect changes have on the company are equally impactful. Another example would be one staff member driving fantastic ideas and changes forward during the scoping of a new ERP, whilst others may be quieter or less involved. In this instance, having an overseer not embedded within a particular team and encouraging engagement from all departments is crucial.
4) People power
It is a major project for the business to take on and will require time and commitment from all key people; you have to get this right from the start. It’s understandable that staff are busy and have their job responsibilities, so it can be easy to push training and implementation work to one side. Consider how you will manage your workforce, and maybe even hire temps or give junior staff bigger responsibilities to alleviate your key subject matter experts and enable them to concentrate on the project. Above all else, invest time and prioritise the importance of change management.
5) Technical vulnerability
The reality for most businesses is that they will need the system to integrate with some existing systems. Make sure that these processes are clear and calculated in scoping and that your vendor can integrate systems properly. It would help if you also sourced an implementation partner whose priority is finding the right solution rather than a quick solution. A partner dedicated to investing their time in your goals makes all the difference for the initial software implementation and its long-term success.
Another area of risk is data migration. Data migration is a considerable part of the implementation, and, if there is no open communication at the scoping and delivery stage this can leave space for error later on.
Understand unfinished transactions and broken or old data, for instance, so there are no surprises or unsuccessful data migrations that can add on labour time and cost you more money.
6) The resistor
Implementation requires more than just manpower to succeed. Effective implementation will also need a strong sense of willingness, especially as challenges and solutions arise. Having even one person in your team that resists the implementation from the get-go can affect the success of a project. Therefore, we recommend identifying resistors early on and converting them to get on board. After all, the software is only as good as the people involved.
7) It takes work
An ERP implementation is very much a live collaborative process, and the more you put in, the more you get out. An out-of-the-box software solution may be quicker and easier to implement, but will it perform the way your business needs? The software can handle complexities and work around your business, but be aware that this is a process guided by people through which developments and changes will occur. A solution will organically develop through discussions, scoping, training, delivery, and even past go-live, and workflows adapt accordingly. The more prepared you are to nurture your system development, the better its success.
There you have it, seven simple but powerful reasons an ERP implementation can fail. Enapps chooses to highlight these risks to support clients and future clients as best as possible. Enapps are a passionate team with years of experience and can help guide and ease ERP implementation for you and your business. Please get in touch to begin understanding the process and discussing your requirements. We’re here to help and look forward to supporting you on this journey.