Common Challenges of ERP Implementation

ERP implementation can be a complex mission as it can adversely impact existing business processes. And to realize the capabilities and capabilities of the new system, businesses often have to modify functionalities and operations accordingly. Companies also typically need to replace long-standing manual processes with more efficient automated processes.

Businesses may face many ERP challenges depending on how they integrate ERP, but there are some major challenges that automatically come with the implementation of ERP. Business leaders should know about them to prepare in advance or find other solutions to overcome those challenges.

Also Read : Why an ERP Implementation is Challenging

Here are the top major challenges that organizations implementing ERP systems may face when getting started with enterprise system implementation:

1. Data Integration Issues: When data is ready to be migrated, it requires alignment with the ERP system and its processes, and this can vary for different businesses, as the ERP implementation is tailored to the needs of business goals. This is a major ERP implementation challenge that many companies face.

2. Data Quality: Good data quality is essential as old data often does not match up with new technology. So when legacy data is used in modern ERP systems, the result is poor data integration, which is a common complaint against ERP in CIO circles.

3. Inadequate ERP Project Planning: Organizations often underestimate the budget and requirements required for successful implementation. One of the major ERP project implementation challenges arises due to inadequate project planning, which mainly involves budgeting.

4. Improvements & Maintenance: ERP implementation is not a 'once and for all' effort that ends when the new system is fully functional. Plans must evolve and advance to support new business demands and technology. This is one of the biggest ERP challenges for ERP solutions and processes.

5. Technical Challenges: Another major ERP challenge and risk is the technicalities of ERP implementation. Unless companies adopt a cloud-based ERP system, the servers and hardware need to be reviewed regularly and manually. This is a major challenge that business leaders must pay attention to.

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