123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL » Health >> View Article

Common Mistakes That Cause Failure Of Erp Implementation

By Expert Author: Nix Polkinghorne

ERP (Enterprise Resource Planning) softwares integrate internal as well as external management information across an organization, including customer relationship management, manufacturing, accounting/finance, sales and service, etc. ERP connects all the departments of the organization into a single computer system. It is not very easy job to cover the whole organization in a centralized computer system, but Enterprise Resource Planning softwares can combine different departments together into a single integrated computer system, so that all departments can communicate and share information with each other very easily.

Deciding to implement an ERP software system is a big decision for an organization. It is tough to believe that an unbelievable 92% of ERP system implementations fail. The most common causes of ERP implementation failure include not fulfillment of critical projects on time, implementation may go over budget, do not work as expected from ERP system, etc. Companies invest a large amount of money in their ERP implementation. It can wind up being a drain on financial resources as well as human resources to get it installed, train users, as well as maintain and upgrade it. Knowing the common mistakes that cause failure of ERP implementation is the first step in planning for Enterprise Resource Planning.

The following are common mistakes that cause failure of ERP implementations in a company.

1. Business Process Reengineering: Often companies are not willing to alter their business processes to fit with the new software and applications, or do not understand its importance that causes failure of ERP implementations.

2. Poor Planning: Planning can extent from not preparing the users to make decision on configuration, to the investing in a plan that detain all the issues related with implementing ERP software.

3. Change Management and Training: Changing the business processes and management, corporate culture, and employee training are vital components to an ERP implementation. Employee training and educating all employees should start before implementation process to make their jobs easier and the organization more efficient as a whole.

4. Assuming ERP system as a simple IT project: Assuming an ERP system as a simple IT project can also be one of the most common mistakes that cause failure of ERP implementations. After all the resources and time allocated to this project, you will end up isolating the ERP system in a vacuum. Without proper input, the ERP system will not be engineered and allied to work with the business processes and needs of employees.

5. Underestimating IT skills: As most software are upgrading, the IT skills of the staff also require to be upgraded. But, usually this effort is underestimated that lead to failure of ERP implementations.

6. Insufficient Software Evaluation: ERP is so integrated and substantial that can be much more complicated than expected. This also may be one of the common mistakes that cause failure of ERP implementations

7. Technology Trials: The effort to build interfaces, customize the software, change reports and convert the data is usually underestimated, which actually may require an effort that is beyond what is usually expected.

8. Underestimating Resources: Many organizations underestimate the cost of change management and training, report customization, process rework, integration testing, and consulting fees. This also leads to failure of ERP implementations.

All of these are the common mistakes that cause failure of ERP implementations, so you should avoid these mistakes for a successful ERP implementation.

Read about ERP Selection for SME. Also know Low Cost ERP Software. Read about ERP Implementation Planning and Strategy.

Total Views : 52Word Count Appx. : 578See All articles From Author

Health Articles

1. How To Start Up With The 200 Hour Yoga Teacher Training In Nepal?
Author: Buddha Lama

2. Natural & Simple Way To Get Good Health Reveled
Author: Iriena Brown

3. How To Find The Best Medical Transcription Service
Author: William Tyler

4. How Long Do Porcelain Veneers Last?
Author: James Franklin

5. Some Of The Different Kinds Of Cannula
Author: Puneet Dhawan

6. How To Increase Sperm Count Naturally With Herbal Semen Enhancer Pills?
Author: Michael Jayden

7. Natural Energy Booster Remedies To Improve Male Vitality In A Safe Manner
Author: Michael Jayden

8. Member Rash Or Bumps: Is It A Socially Shared Infection?
Author: John Dugan

9. New Pet Scan May Be Better For Prostate Cancer Follow-ups
Author: petcttexas

10. Your Healing Assured With The Acupuncture Brunaby Service
Author: Braylen Thomas

11. Here Are The Things That You Have To Do Before You Buy A Dental Practice
Author: Ricky thomson

12. Treatment For Sleep Apnea And Snoring
Author: Alex Bowmann

13. Tips For Getting A Good Night’s Sleep
Author: Alex Bowmann

14. Bookkeeping Software That Helps You Manage Your Small Business
Author: William Tyler

15. Understanding Ayurveda How Ayurvedic Products Offer Healing Effects
Author: NaturalTherapyIndia

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: