There are many implementation failure stories where the vendor or the buyers are not sure of the reasons for failure. There can be a number of errors which can cause a failure. Some of the common errors are selection of improper solution, wrong time of implementation, lack of resources, inadequate support form the management, too much of work, loopholes in planning etc.
Common errors of ERP implementation are -
Selection of wrong time: Certain months during the year are business months for the company, when it is involved in promoting itself and its manpower is busy in completing the targets of the year. However, Implementation during high season enables the company to test the software immediately and get highest amount of customization as per the requirements. Hence the company should analyze whether it can attribute the exclusive human resources for the implementation and accordingly choose the timing.
Non identification of the uniqueness of the business: If a company is not aware of the uniqueness of its business, which cannot be fulfilled by any ERP software, then it may not get the needed software plan. There are many horizontal solutions which are designed for all industries and it does not incorporate the unique features. The organization should not select the software which cannot handle the growth and capabilities of the organization.
Not having a dedicated team: The support from management and a dedicated team is required for successful implementation because if a team is not fully dedicated to the purpose it may cause delays and overload of work. The employees have their deadlines to complete their business projects and if they spend time on implementation they may not be able to spend time on regular everyday work. It is very important for the organization to dedicate time for it.
Not realizing the actual cost: The Company going for implementation requires to allocate funds and resources for it. The resources include the expense on machines, human resources and time. The unproductive time the employees spend on learning to use the software, the cost of license and maintenance, the cost of process, replacements of machines etc should be considered while defining the cost.
Not making a realistic schedule plan: Estimating unrealistic schedule plan and try to using quick fix methods for completing the project on time can be damaging in long run. Adequate time should be devoted to each step of process and the man day increments should not be more than fifteen days.
Reluctance to change business processes as per the new requirements: Many organizations are not ready to leave the manual method of work only because the employees find it easy to use the known way of doing things. Many companies and employees are not ready to adopt changes. Software tends to shorten the methodologies and patterns and reduce human effort which reduces the chance of manipulations and therefore the employees using regular manipulation methods may not like to adopt the new changes.
Not giving appropriate training: The employees who will use the software should e given time to learn the use of new software. The change in technology and procedure of using the software can be tough to handle if the employees are also burdened with the job of finishing tasks on time and realizing the business goals.