A look at common ERP implementation problems and how to fix them

////A look at common ERP implementation problems and how to fix them

Installing enterprise resource planning software can be a problem when businesses don't prepare correctly or recognize potential problems before they arise. Because ERP connects so many different parts of a company, it's important to have all major stakeholders on board so that issues across an organization can be identified and resolved. Understanding where common problems occur during implementation can also provide a leg up to businesses, allowing them to focus on these possible trouble areas before anything negative can actually occur.

Here's a look at the three common concerns that can drag down ERP implementations and what can be done to avoid them:

  • Cost overruns: According to research from ERP specialist Panorama Consulting presented by ZDNet, 53 percent of businesses responding to a survey about this software reported dealing with higher-than-anticipated prices. Keeping the cost of implementation low can be difficult, but one strategy that businesses can use is to select a modular and easily configurable system such as Microsoft Dynamics NAV. A component-based ERP systems allows businesses to focus on necessities during initial implementation and then add on more pieces that are wanted but not necessarily needed as time goes on and money becomes available in a budget.
  • Long timelines: A majority of businesses also reported having to deal with delays in the implementation timeline as a new system was installed. This is a problem that often results from businesses not having a strong plan in place to drive communication between different teams and departments. This is one area where discussions with other businesses ahead of time, as well as the vendor, can help to figure out where similar organizations have run into implementation problems. ERP Focus suggested using a professional network to discuss potential installation issues and find ways to avoid a problem encountered at another business.
  • Use issues: {though?} Not as prevalent as cost and time overruns, a lack of training can still cause some very significant problems for businesses trying to get a good return on investment from their ERP software. Working directly with employees on the production floor and front-line managers is one way for companies to boost their training efforts and make sure that employees aren't just sitting through the educational sessions, but actively learning during them as well.

Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing: Defining the ERP Strategy" from the DMS website today.