ERP implementation can be an exhausting process, especially when you don’t know what to expect.
According to a Panorama’s Report about 72% of ERP implementations fail.
They’ve considered these three points to declare an implementation a failure.
- Taking longer than expected
- Costing more than expected
- Not even providing half the expected benefits
Let’s find out why these many implementations fail and what you can do to avoid adding to this number.
Ahem, Ahem, Expectations
Most disappointments are born out of high and sometimes unrealistic expectations.
And the thing about this juicy little pleasure infusing feeling is that no matter how much you convince others of not feeling it, you almost everytime will get caught in its deception.
Yes, what’s the point of entering a project with no expectations?
Nothing. That’s why a right balance of keeping and relieving is necessary.
Here is where comes in your vendor.
Not all will resist the temptation of a yes, of that smile on the potential customer’s face, and the fleeting satisfaction of ticking all the right boxes.
But that’s why it becomes even more important to select the right vendor.
What does that mean?
Ok, so in most cases, almost in every case, you would want the project to complete in impossible timelines. No, you’re not doing that consciously, you’re a good person after all. But you do not know.
You say 3 months is a lot, your vendor’s expression takes a wrong turn, but the words go in the right one. Yes, they utter, the timeline fixed is 2 months.
And while you read these words, I can read your face, and let me tell you the future seems to be having a failed ERP implementation. But nonetheless, reversible. All you need is to chant this mantra, no ERP project gets live in 2 months, and wear one sacred pearl ring in one of your fingers.
Ok, now going above, no one is cheating here. You don’t know the timeline, and your vendor doesn’t want to disappoint his customer.
So, what’s the solution?
Before you enter the overexcited, unchained enthusiasm phase, stop, and analyze.
Analyze the gap and the right solution that may be needed to fill that gap.
See different systems, compare them, prepare a question list, clear your doubts.
Be realistic in your expectations, it can easily take 5 – 6 months to get properly live and even after that you may face some issues, which can be resolved immediately or may take some time, but to get used to this change you’ll need a complete year.
Gradually, your team will adapt to the new environment, and slowly you’ll see the returns rolling in.
What? What? I cannot Hear You…
The communication gap is one major reason for the project failure. Didn’t see much of the system, went in with little knowledge, and irrelevant questions. You’re heading to a turbulent future.
The process needs to be transparent, from the software gaps to the pricing. 71% of customers believe that their vendor can be more transparent about the total cost of the project. There remains a gap in the exchange of words, most customers are going in with little knowledge about the entire process.
How would the implementation happen?
Who’ll be implementing the system?
Do the vendor have the system ready and if not, how much customizations are required? How much time would they take?
What will be the total cost of the project? Will customizations be charged separately?
And many more questions. If you haven’t had your Q&A session with your vendor, it’s high time you do.
What Do You Mean You Don’t Do That?
Sometimes, it’s not the product but the vendor that falters.
When you enter an ERP project, you’re entering into a long-term relationship with the vendor, and for relationships to work, even when they’re purely business, there needs to be a current.
Never enter into a deal with a dull company. You need experienced people, who love their work and are in line with your thinking curve. Some companies workstyle is too rigid, and they offer no flexibility while some are flexible.
Some offer 24/7 support, some have different time slots. Peak into every peak hole, and see how seamlessly you match or how difficult it will be to have this thing worked out.
What Do You Mean You Don’t Know?
What’s the next step, and the next, and the next?
Do the vendor have any defined procedure for the implementation? How reliable is that process? Why that process?
A lot of projects just go off track, and that leads to their demise. You need to have clear steps and deadlines to fall back on. If you don’t know the picture from start to finish, you’ll probably won’t realize that picture.
Waiting, Waiting, & More Waiting
It can be frustrating to sit on-line waiting for your queries to get heard.
A bad support can take the building down. Learn the support mechanism before you enter the contract, see all mediums, the entire process, how the priority tasks are handled, is there any fee? and all the other doubts that you might have.
How To Use This Thing?
After all is done, you are left with the machine, and it doesn’t even answer your questions.
Well, it does in some way but you need to know the questions, and that’s when you look up to the left charging your memory cells trying to remember what you learned in the training.
But what if you didn’t learn anything? You’re in trouble.
Training is an essential part of any ERP implementation. It needs to be devised in a manner that effectively imparts the knowledge to its recipient.
Many ERP projects drown in deep waters because of their complex functioning and less advanced workforce.
So, do your study on the capabilities of your workforce and the complexity of the system. Try and go for a simple to use enterprise system.
Try the system yourself, have doubts clearing sessions, have sessions with your workforce, clear their doubts, and convey the benefits to the employees.
On That Note.
I’d suggest you take a look at S.I.M.P.L.E. a simple to use and end to end enterprise solution.
There are no hidden costs, and we offer unlimited user-licenses.