Top Challenges When Selecting and Implementing ERP
The rapid pace of technological evolution is perhaps why businesses today are struggling to keep up with the digital revolution.
According to Katie Slimov, the major challenges to successful ERP implementations are not technologically related issues such as compatibility, technological complexity and standardization but human related issues such as resistance to change and shifting business processes.
Some of the challenges that she presents are
- Lack of involvement of senior management in the roll out of the project. The leadership together with stakeholders should be able to encourage the organization to use the system, commit user involvement, resolve conflicts and build cooperation amongst diverse groups within the organization.
- Poor team communication. Building an effective communication improves the probability of the ERP implementation turning out to be a success.
- Ineffective project management methodology and project governance which could lead to project failure. According to Katie, an effective project management team has to ensure project scope, the project schedule, project resources, project quality, project change and the project’s risk and mitigation are all managed properly.
- Inaccurate and inadequate master data management and data migration process. A successful ERP implementation is based on the quality of the data fed into the system both during and after deployment. Implementation failures are a result of poorly managed master data.
- Not actively involving business stakeholders up until project completion which is very key for a successful implementation. I.T department basically serve as facilitators of the project requirements and system controls.
- Not having a core team for the right functions.
- Inadequate change management. Kate Slimov highlights that the need for organizational change management and business process re-engineering if not taken seriously, results in making the ERP system nothing more than data aggregation system which cannot be relied upon for decision making.
At the end of the day, an ERP implementation should be considered as an organization-wide project that benefits from the contribution of all stakeholders.
Article by Katie Slimov, an author at ERPnews.com. For more visit this link https://erpnews.com/top-challenges-when-selecting-and-implementing-erp/