Why does ERP implementation fail? There can be several instances where one educational institution has made the most out of an ERP software; whereas, the same software have not yielded desired results in another institution. So, what can be the possible reasons?
Let’s find out the important reasons for ERP implementation failure:
1. No clear objectives
A very common mistake most of the institutions looking out for ERP implementation is the lack of a clear goal. Without a clear and sure definition of the expected success, the problems to be targeted, financial benefits expected, the end result will be vague. This includes the very first important stage of taking the decision to go for ERP implementation as well. The dilemma of whether you need an ERP for your institution should be solved in the first place.
2. Lack of proper user-training
The process of ERP implementation shouldn’t be done in a hurry, more specifically the training part. Since the ERP system offers complete automation of most of the departments functioning in your institution, the training has to be apt, to the depth, for the right amount of time and should include all possible users in the institution. Without proper knowledge of the implementation by the end users, optimal usage of the system falls short off.
3. ERP implementation is not a cost
It’s an investment: Most educational institutions fail to realize that ERP implementation is an investment that’ll yield profit in the long run. In turn, they look out for vendors who offer the lowest quote, thus overlooking the expected benefits or results.
4. Change management
A very common reason for ERP implementation failure is the inability to manage the change that’s coming up with the new implementation. Adapting to the change the system brings about is a smart move rather than pointing out the difference between the old system and the new one. The point that the decision of upgradation of the system is opted by you, itself speaks how important it is to you to adapt to the change for optimal result.
5. Poor overall management of the project
Managing an ERP implementation project in your institution is not an easy task. A good management team or a leader is needed, who can look over the entire implementation process- scheduling things, proper communication between all the right people, etc.
6. An absence of data accuracy
If proper and accurate data is not transferred to the new ERP system implemented in your institution, the system would lose its credibility with the end-users.
7. Overlooking technical difficulties
Hardware difficulties, interface problems with the management process in the institution, ‘bugs’ in the software can lead to a bad experience with ERP implementation.
- ERP implementation is a long-term process; hence, the steps you adopt towards implementation should be executed correctly. These problems, if timely dealt with, can never get you the undesired experience of an ERP implementation failure.