28 June 2010

How to Avoid ERP Implementation Failure?

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There are many tools businesses can use to help improve their operations and revenue. One of the most robust and customizable of those tools is Enterprise Resource Planning (ERP) software. When it is implemented properly, ERP software can help streamline business processes in industries ranging from construction to manufacturing.

However, sometimes implementation can fail, as ERP and More details in its story “How not to implement and use ERP software”. When it does, that same software that should be helping can become frustrating for employees.

Determining whether or not your implementation has failed can often be one of the more challenging aspects of ERP software.  Here are some of the signs that your ERP implementation has gone wrong:

  • Employees Feeling Frustrated & Demoralized – In the case published on ERP and More, an employee using an ERP software that was poorly implemented found himself “clocking in and clocking out” for each and every single task and yet feeling as though he was reporting to no one.  Productivity of employees is key but not at the expense of their sanity.

  • Your ERP is All About the Numbers – A properly implemented ERP solution should improve your processes through technology, not  simply count numbers and make sure each and every person is meeting their quotas.  When in the design stage, understanding the difference between which processes need improving and which don’t is important.

  • Employees Failing to See the Benefit – Similar to the first sign, if your employees fail to see the benefit of ERP software, your ERP implementation is failed.  A properly implemented ERP solution shows the employees, from the very first step, how it will change their jobs for the better and benefit them.  The more onboard they are, the higher the utilization of the system and the better adoption.

  • The Wrong Person Enters the Wrong Data – A poorly implemented ERP system means that the wrong person is in charge of entering the data.  As the ERP and More article mentions, “Drive data collection to the source” means that the person who is most responsible for the source of the data needs to be the one entering it.  If this isn’t the case, once again the ERP has failed.

As much as ERP software can fail if not implemented properly, it can also be one of the strongest tools available to help a company improve its operations.  And the best part is, several companies dedicate themselves to providing the consultation necessary to either ensure a smooth implementation or correct a rough one.

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Luciano Cunha
Luciano Cunha,
Luciano Cunha,
Chief Executive Officer (CEO)

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