The point is that ERP implementation projects involve a variety of people, not just systems. This means that you will face not only technical obstacles, but also people-related challenges, such as resistance to changes in familiar business practices. Common ERP implementation challenges include
1. Project management
An ERP implementation project consists of multiple phases: planning, design, development, data migration, testing, deployment, support, and post-implementation support. Each phase has critical tasks and all tasks require project management. Furthermore, successful ERP implementation requires the participation of all departments, both those who will operate the system and those who will use it. Project management plays a major role as each department prioritizes multiple tasks for the ERP project in addition to their normal duties.
2. project planning
The most common causes of budget overruns are adding features and capabilities to the system that were not included in the original plan and underestimating staffing needs, according to the report. Clear and realistic planning from the beginning is critical to avoiding these problems. A realistic project plan recognizes and addresses possible obstacles and minor cost overruns in advance, simplifying the decision-making process and keeping the project on track.
3. Data Migration
One of the main advantages of ERP is that all data used by an organization is stored in a single database. One of the key steps in ERP implementation is the migration of data from multiple legacy systems to the ERP database. Data migration involves selecting and processing (cleansing) data that should be migrated from the old system to the new system. The cleansing process can be a much more time-consuming task than one might imagine. The data to be migrated may include accounting systems, department-specific applications, Excel, and perhaps even paper-based information, and may be spread across the entire organization more widely than imagined.
4. Adapting to Business Process Changes
ERP implementation involves much more than simply switching to a new software system. It typically means revamping business processes to take advantage of the efficiencies and productivity gains possible with the new solution. Changing business processes creates many challenges and requires a variety of changes, including the way many employees think about their daily tasks.
Gaining buy-in from department leaders and stakeholders early in the implementation project is critical to a successful implementation. Communicate the new ERP’s features and benefits to all stakeholders throughout the implementation project, especially front-line end users. And ensure that all users receive comprehensive training and support to facilitate the path to system implementation.
5. Cost overruns
ERP projects often exceed their anticipated budgets after the implementation project has kicked off. Many organizations underestimate the amount of work required to migrate to a new system, resulting in higher-than-expected costs.
When internal resources are inadequate, companies often turn to IT vendors or outside consultants. This is especially true for project implementations that require many solutions and significant customization to meet the company’s needs. Excessive use of external vendors is one of the main reasons for cost overruns.
6. Periodic Improvements After Go-Live
ERP implementation does not end when the new system goes live. It must continue to evolve to support new business requirements and technologies. The project team must correct problems, support new requirements, and continue to manage the project after Go-Live.
Coznet’s project management methodology, based on our extensive experience in ERP project implementation and post-go-live operations and maintenance, will ensure the success of your ERP project.