Successful through the ERP project: 9 problems and how to prevent them

Problematic: although there is so much Selection of ERP for SMEs no solution can guarantee success. However, with the right corporate strategy, analysis and controllingproblems in the ERP project can entail can be circumvented.
A medium-sized company can sometimes spend a five- or six-figure sum on a new ERP solution. The result is usually a functioning system. However, the course of the project is not insignificant for the success of the system. Often the ERP project suddenly devours much more money than originally calculated, it takes much longer or deviates from the actual objectives.

Here is a list of these problems, their origin and how to prevent them:

Problems in the ERP project: Missing corporate strategy

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There is a widespread misconception among SMEs that they can overcome the difficulties they face with the help of new technologies. They forget that these technologies are only a tool and only gain a foothold with a good corporate strategy.
The successful introduction of a ERP system is therefore inevitably linked to the project having a well thought-out corporate strategy. If this is missing, no software in the world can guarantee success.

Before starting the project, it is important to develop an effective corporate strategy. It can help to set out some objectives, such as :

Will new business areas be opened and what are they?
Which markets is the company targeting?
When does the company want to be where?
Which direction does she want Management generally aim?
What competitive advantage does the company have and how should the organization define or enhance it?

Problems in the ERP project: Missing ERP strategy

The ERP strategy can now be defined based on these objectives. The need for a corporate strategy becomes clear at this point at the latest, because only on the basis of this can you determine, for example, which work processes you want to realise with the ERP system. Optimize ERP wants. With this strategy, the company can determine where it wants to increase its efficiency with the help of the ERP. If the ERP is introduced without such a coordinated strategy, the long-term success of the system in the company will suffer.

Problems in the ERP project: Different ERP and corporate strategies

Another problem is the lack of adaptation of the ERP strategy to the changing corporate strategy over time. It is normal for objectives to evolve over the years in response to new products, changing markets or changing competitors, for example. However, the ERP strategy must then keep pace and adapt to the new target conditions. Otherwise, the ERP system can no longer guarantee the company optimum efficiency.

Problems in the ERP project: The importance of the analysis phase is not recognized

The next problem is often the analysis of the ERP project. In order to carry out an analysis, the company must be aware of its business and ERP strategy. However, it is often not entirely clear what goals the ERP solution is to be used in the exact sense and which steps are necessary for this. In addition, the time required for this is often underestimated. Depending on the size of the company, 3 to 100 person days are required for the analysis required. In this phase, the customer can work with the ERP provider to analyse and structure their own work processes and objectives so that these are not lost during the project. However, to guarantee the success of the ERP, companies need to work on these points. Here are a few examples:

Which core processes and core business areas must the new software map?
How much time is required for data migration or legacy data cleansing?
What happens to orders that were placed before the changeover but are only fulfilled and/or invoiced afterwards?
How are open invoices treated?
What must be taken into account for residual benefits?

Problems in the ERP project: the schedule is calculated incorrectly

Another possible problem is the general time requirement or time pressure in the ERP project. Those involved often underestimate this. In order to be able to start using the ERP system on the planned date, test phases, urgent adjustments or necessary training courses no longer realised. It is therefore important to define the schedule precisely in advance, to include the budget plan and to keep an eye on the schedule at all times during the project.

Problems in the ERP project: neglect of project controlling

Services account for between 10 and 20 per cent of the project volume of an ERP project. Many SMEs do not realise how much time and financial resources controllingmonitoring and management of such a project. The service provider also needs the support of an internal project manager.
The tasks of this project controlling are:

Keeping an eye on costs, deadlines and benefits and intervening if necessary, e.g. in target planning or budget
If the need for change arises, recognise it and implement it. If goals or conditions change, the successful implementation of the project can often be better achieved in a different way.
In order to optimise the project, internal changes may also have to be made. Project controlling is also responsible for recognising and implementing this.

Problems in the ERP project: Lack of support from management

In order to complete a project successfully within the company, it often requires additional work from individual employees. This requires the project manager to be released from their normal duties. This leads to resentment towards the project and can cause it to fail. To prevent this, the Management Carry out project marketing within your own company and convince the employees concerned that the additional work they are currently doing is paying off.
In addition, the management must be service provider work together and clearly define the tasks and responsibilities. In addition, those responsible should always have an open ear for the (interpersonal) tone and promote understanding between those involved in the project.

Problem 8: Data migration is underestimated

In the data migration not only old data is transferred from the previous system to the new one. Old files need to be cleared out, inactive data records and ten-year-old invoices deleted. Product information for products that are no longer sold should be removed anyway. Other data, on the other hand, must be restructured or edited. The effort required for this task is therefore often underestimated. However, if you don't take on the burden of the old data in the new system.

Problems in the ERP project: Is not approached methodically and with foresight

The service provider can also be the cause of problems during the introduction of an ERP system. For example, if they do not have a project methodology, as this serves as the basis for the endeavour. A methodical approach should be taken from the analysis to the offer, contract and the project itself. The individual stages of progress should be defined and documented.

What's more, projects that start small and only grow later are often more successful. This is because only 80 per cent of the requirements placed on the system actually make sense and the other ten per cent bring little added value, but have cost a lot of effort and money. In other words, smaller projects that do not cover all requirements from the outset are often more effective and better for the company than large projects.

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