STEPS TO PREVENT ERP IMPLEMENTATION PITFALLS

ACTIONS TO AVOID THE IMPLEMENTATION OF ERP PITFALLS

REASONS FOR ERP IMPLEMENTATION FAILURES

• Inadequate input from user
• Incompetent technology
• Non-availability of resources
• Improper time frames
• Difficulties with adopting new technology

• Incomplete requirement
• Unstable requirement
• Inadequate support from staffs
• Unrealistic goals
• Improper objectives

STEPS TO AVOID   ERP IMPLEMENTATION FAILURES:

• The improvements need to be achieved should be listed out in order. Changes to be done in currently installed systems must also be considered and prioritized.
• Role based needs should be assessed.
• The best ERP practice in the industry should be selected and applied.
• Goals should be assigned for each and every department.
• Word of mouth references from the staffs should also be considered.
• Budget should be properly allotted from post pre to post ERP implementation.
• Budget variances should be given importance. Hence, unplanned and unexpected changes should also be considered in budgeting.
• Most importantly, the selected team should have the capability to support ERP implementation.
• The Project Manager should have the sound knowledge of business.
• The team should include the members from each department of the business.
• Sufficient training should be started immediately after launching the project.
• Training should also be given based on the roles of the team members.
• Refresher training should be given quarterly.
• Testing should be performed frequently and necessary correction should be made accordingly. Testing should be continued till the project ends.
• Results of ERP implementation should be evaluated in terms of finance, CRM, purchase, production, sales and inventory.

MANAGING ERP IMPLEMENTATION FAILURE

• ERP implementation failures can be managed by the following steps:
• Independent validation and verification should be done and the reports should be sent to the board of directors instead of project management team as the failure factor might be from the project management team itself.
• A tool should be incorporated to bridge the gap between   vendor and the customer.
• Consulting ERP expert witness is also very important to overcome the ERP implementation failures.