This is where ERP projects fail - and how to do it differently.
6 Dec

This is why ERP projects fail - and how you can do it differently

On ERP project is always an opportunity for a company. But it is also a risk. Of course, as providers and consultants we try to make the course of our ERP projects as predictable as possible and thus avoid mistakes. But this is not possible in every case. Because as we have often discussed here, there are always two parties to a successful conclusion: us and the company.

Both sides can be responsible for a "failure" of the ERP project - often for the same reasons.

Here are the most common hurdles for ERP projects:

1.process rivalry

Depending on the size of the company, it is divided into departments. But even in smaller companies, each employee has their own understanding of their role. It is not uncommon for differences to arise from these positions. In the context of an ERP project, this is especially true for the restructuring of the processes relevant. This is necessary to achieve significant success with a new system. However, many employees often find it difficult to think beyond the boundaries of their own department or function. On the one hand, this is bad because we depend on them to identify the relevant processes in the first place, and on the other hand, those who feel misunderstood will always put obstacles in the way of the project. The only way to resolve this situation is to try to make the project as transparent as possible from the very beginning - even in the planning stage. The role of the employees should be communicated openly and clearly

2. confidant

The second hurdle for ERP projects largely results from the first. If the ERP project and the goals of the new implementation are not communicated openly enough, motivated employees often focus on the wrong points. If you push the project in the wrong places, this will not help either. That is why it is important to train the employees involved in the project in ERP software at an early stage. It is important to train all employees sooner or later, as they will ultimately be working with it and the success of the introduction is therefore directly dependent on them.

4. right to a say

This hurdle is also directly related to the others. The disadvantage of "involving everyone" is that everyone can, may or wants to have a say. If this is part of the good tone of the company anyway, it is very praiseworthy, but it can be a hindrance to an effective Project planning problems. It is therefore important to appoint project leaders who are understood and accepted as such by everyone. In addition, one can try to clearly communicate the general goals of the project or make these the goals of all involved. This is also important, as many companies in ERP chaos tend to leave the decisions to the ERP providers or consultants. However, these can never have sufficient insight into the respective company. A clear positioning of the company is therefore important.

4. target focus

The objectives just mentioned are already identified during project planning. This already means a lot of analysis work. Constructive advice from responsible staff can help here on the one hand. On the other hand, it is important to plan sufficiently precisely here. This takes time. The management should therefore make sure that employees involved have sufficient resources to be able to fulfil all their tasks. An imprecise or unclear definition of the objectives can significantly drag out ERP projects.

5. system error

For many processes, the standard application in the ERP system. However, not every company with its in-house processes can be pressed into this mould. Good software is expandable here - often already through add-ons, as with SAP Business One. Here, too, a proper process analysis is absolutely necessary. If the ERP system turns out to be wrong in retrospect, this means a lot of time and money for the company to adapt the system sufficiently. In the worst case, there is no improvement of the existing processes at all or it even leads to an isolated solution of software. This can be avoided by clearly formulating the processes and requirements, for which the responsible employees are needed.

6. time management

Planning is half the battle. This is especially true for ERP projects. Especially the factor Time plays a major role. Since employees - especially the project managers and Key user are stressed during the project phase. The testing and introduction of the new processes can also disrupt the usual workflow in the company. Therefore, good time management is necessary. For each step (capture, analysis(planning, introduction, tests, etc.), enough time should be allowed with a buffer so that time does not become a stumbling block for the ERP project.

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