Potential ERP Implementation Challenges and Their Possible Solutions

The introduction of ERP systems has transformed the world of business that too positively. By binding all scattered processes in one place, inventory or finances, management or HR, running a business was never this smooth. But, every smooth thing has its complexity and when it comes to ERP, its implementation poses challenges. If not done correctly, even big organizations can face failure or delays, to say the least. This alone makes it important that one understand the importance of ERP implementation and the potential ERP implementation challenges.

Considering that there are challenges involved in ERP implementation, let’s see the most common ones and the possible solutions to fix them.

ERP Implementation Challenges and Solutions

No Clear Objective and Vague Planning

Several businesses are quick to adapt to every trend that hits the market and claim to ease the way business operates. Though most of these trends don’t have much damage to do, ERP implementation is a lot different because it merges with your business and becomes the backbone of its operations. There is no way you get this wrong and the absence of a clear objective, the vision of business, and the planning will end up creating chaos in your operations.

The Solution:

To overcome this problem, the only possible and effective solution is to define the goals of your business and what are you expecting from the ERP implementation. You should analyse to identify the needs of your business and the areas of improvement. During the analysis, you must focus on creating the milestones and the timelines for achieving them.

Unwillingness To Accept Change

The main motive of ERP installation is to streamline the operations and put it all in one place to avoid disparity and switching between software. However, not all employees working in the organization are willing to adapt to the new setup and the changes. There can be reasons like difficulty managing the new system or fear of losing the job to new technology.

The Solution:

The best way to deal with this particular challenge is to talk it out with the employees and ensure them that implementation will only help them. To eliminate the fear of operating the system, train them to work with it and it will only add confidence in them. When the new ERP is being installed, involve the employees during the process and give them the brief. Hiring an expert developer will ease the entire process.

Picking A Wrong ERP Vendor or Systems

Though the ERP system is created to ease the operations of the business, you getting a good and reliable deal vendor and a system that aligns with your business model is crucial. Picking the wrong vendor or system will only fail your business further.

The Solution:

The solution to this is a little time-consuming but worth the hassle. You will have to dig and research the market and shortlist some of the reliable vendors. Along with this, you must research the ERP systems that work best with your business and its diverse needs. Ask the vendors for demos and trials and check their portfolios and reviews. Get certain about their customer support and what are their post-implementation services.

Lack of Proper Training and User Adoption

All products are developed with the sole intention of serving the customers and easing out their way and the ERP system is no different. But, what will be its use if the employees fail to get a grasp of it and navigate it? This can only happen if the employees are not given proper training to use the final result and will further lead to the delays, and the failure of system.

The Solution:

Dealing with this challenge is not that difficult if you are investing in training programs for the employees regularly with the help of video tutorials and manuals. As there are different roles in the ERP, you can conduct individual training for the different roles. Always keep a technical team ready to address upcoming issues before they create an impact on other operations.

Bad Calculation for Time Taken for Implementation

Rush and getting impatient with the implementation can end up badly. You can’t expect the ERP implementation to take no time and get done instantly. The reality is that it does take time which varies from system to system. Sometimes, the time taken can range from months to years for a complete implementation, and that can also be due to the complexity of the business.

The Solution:

You must be aware of the time frame the ERP implementation might take and create a buffer period in case of unexpected delays. Do not get the implementation done in one long stretch, but break it into phases for ease of the business. You can also keep a regular check on the progress and can make necessary changes wherever you think it is required.

Scattered Data Migration and Integration

Migrating and integrating the existing data into the new system is a crucial step for utilizing the new ERP system to the maximum. Scattered, incomplete, and poor data migration can hamper the operations of your business; disrupt the process, and constant inconsistency.

The Solution:

Auditing the existing data and ensuring that it is complete before you migrate and integrate will boost the working of the new system. While auditing, you must delete the repeated data and the ones you need no more. Put the data on the test before the final migration and ensure that the new system is integrating with the existing data and tools.

No Proper Executive Support and Participation

When the leaders of the company fail to participate during the ERP implementation, it leads to the employees behaving the same way and not taking the new changes seriously. Low adoption will lead to failures.

The Solution:

Before making the decision of new ERP implementation, involve the leaders of the company through various meetings and explain the benefits of the system in the long run. Dedicate a person or a manager to work with the implementation and make him discuss the constant progress through regular meetings to keep the leaders involved.

Security and Compliance

Security and compliance are two main attributes of any software, but with ERP implementation, their importance increases. The ERP system you are choosing must adhere to the industry regulations for working with sensitive information.

The Solution:

You must check and do some research about the ERP system to ensure that it offers robust security and essentials like data encryption and access control. It must adhere to the industry standards like SOX and HIPPA.

Budget Exhaustion and Hidden Costs

Budget is indeed one of the most important factors and it might exceed what you initially set. There are some additional or hidden costs that get uncovered during the implementation process like customization, IT infrastructure, or training.

The Solution:

To not pay hidden costs or stick to your budget, make a realistic budget that covers almost everything like training and customization. You can work with someone experienced who has worked with ERP systems as it will help you decide on the budget. To avoid paying more than you can bear, you must pay for the essential features and ignore the ones that you won’t require in a long time.

ERP implementation is done to ease the process of your business, but it has its complexity and challenges. However, these ERP implementation challenges don’t pose a constant threat if you also implement the solutions. You can utilize the maximum potential of ERP systems only when you eliminate the challenges. If you don’t want something way too complex, Odoo ERP implementation done with the help of the right ERP vendor can change the way your business is working.