The ERP market is ever growing with the total market size expected to grow to $49.5 billion by 2025. Therefore, the need for a robust implementation plan is vital for companies. ERP implementation is not an overnight job as it involves redesigning a business’s processes to take advantage of the new ERP systems benefits. This can take anywhere from a few months to a year on average to complete. As well as that, within this period of time there may be some obstacles. The implementation is usually managed by a project management team overseeing the configuration of the new software, migrating the organisations data to the system and training staff how to use the system.
People tend to dislike change. When a system has been in operation for a long time it’s all the staff know when it comes to their processes and takes them out of their comfort zone. They have to learn new processes which requires a change in mindset across the whole organisation. This will take time to build. Ensuring key staff ‘buy in’ to the new system is key to ensuring the wider team will accept the change.
The process of moving all your company data from the old system to the new can be stressful. Data loss can be catastrophic to a business and ensuring the right data is migrated is key to a successful project. The data migration process can be time consuming as data may be spread across multiple locations and systems within the business.
Once the data is transferred and set up in the new ERP system, you will need to train staff how to use it. People tend to be reluctant to change and getting them to make time for training may prove to be difficult. Training is time consuming, so planning ahead is key to a ERP implementation. Investing time and money in training is important. This is because unhappy staff can lead to a higher staff turnover should colleagues not be happy with the new ERP system.
A lot happens to data during its lifecycle and this can lead to it becoming messy. Data may be saved in different formats or inconsistently which can lead to confusion. As a result, it’s important to have good quality data before implementing a new ERP system. Again, the cleansing of data is a time-consuming process, thus, this needs to be properly factored into your project plan. It’s important to get your data in order before moving it to a new ERP system. Consequently, planning ahead is key here.
In summary, it’s estimated that a shocking 75% of ERP implementations fail. That’s why it’s important to understand all the challenges before hand so that you can easily overcome them.
Want to find out more about ERP implementation?