6 Reasons Why ERP Projects Fail and How to Prevent Them
January 15, 2020
It would be remiss of us to say that investing in an ERP software system doesn’t come with its challenges. While implementing ERP can be complicated and come with hiccups, there are tens of thousands of companies successfully using ERP in this country. Here are 6 reasons why ERP projects fail and how you can prevent similar failures from happening.
One of the key points we mention first with our clients is that business process optimization requires time, attention, and patience.“It’s so important to make sure companies understand that it’s a journey, not an event,” says President of The Attivo Group, Len Reo.Your first milestone should be one that can’t be put off and needs your immediate attention. Save the other minor tasks for later on in the process. Setting an unrealistic or overly ambitious scope of the process will simply leave you frustrated when challenges arise.
Undefined Project Tasks
During the process of establishing your milestones, clearly define project tasks, who will be held responsible for them, and how you will hold your team, your ERP partner, and yourself accountable. It is paramount that these tasks are clearly laid out in regards to the “who” and the “when.” A project like this will always require some use of company resources.
Lack of Internal Resources
A sure-fire way to lead an ERP project to failure is not allocating enough time for internal resources to fuel the project. This stems from a lack of executive support. Make sure that whoever is in the decision making seat is supportive of the project and is willing to work with the team to ensure the system can function at its best.
Initiative Is Not a Priority
If no one is leading the project, implementation management and accountability will be nonexistent, which leads to a failing ERP project. Define who will be the project manager, who will be in charge of monitoring project milestones, who will hold everyone accountable. Putting this in place during the initial planning of the project will prevent the typical ERP hiccups later.
Seeing ERP as an IT Project
ERP implementation is not an IT job, it is a “line of business project”, which is primarily made up of operations and finance. It is a common mistake for companies to push it off on the IT team without understanding the true purpose of the software. This is why is it vital to partner with an ERP specialist who understands that it is a business investment for total process improvement.
Choosing an Ineffective ERP Partner
This may be the most important of all, outside of what’s needed from a company internally. Choosing an ERP implementation partner can make or break the outcome of your project. Your partner has to have an in-depth grasp of how business process optimization works and how to implement the system in a way that will sustain your business. When choosing an ERP partner keep these questions in mind:
Are they focused on process improvement over the long haul or a quick fix?
Do they have domain knowledge of the industry?
If you have questions about ERP and how the Attivo Group can help effectively implement the system into your business, give us a call today and schedule a complimentary needs analysis at 877-428-8486 or contact us online.