Article
Major challenges faced in implementing an ERP
01
The business mindset challenge
Above all the physical requirements to implement such a system, the most crucial challenge is the shift in the mindset of the users. An ERP implementation will require overhauling the business processes to take advantage of the efficiencies and productivity improvement offered by the ERP. This requires a shift in the mindset of people and this brings in change management challenges. Resistance to change could become a major roadblock for rolling out the system. A considerable amount of training is needed to help employees embrace and adopt these business processes and technological changes.
02
The selection challenge
The struggle to implement an ERP starts with how to choose the most suitable ERP solution segregated by the type, size, and scope of their requirements. With hundreds of options available, a thorough research needs to be done before selecting a new system since it will be the most important decision you will make for your organization. The key goal should be to select an ERP system that is a good fit for the organization and meets the business requirements. You should be wary of solution providers recommending one size fits all approach.
03
The Technical challenge
The capacity and capability of your existing IT infrastructure may need an extensive overhaul in order to accommodate the ERP system you are considering implementing. If underestimated, this IT infrastructure may end up being the bottleneck to fully utilize the capabilities of the new system.
04
The data quality challenge
Accurate source of Data is the core to the success of any ERP. A key step in ERP implementation is migrating existing data from older systems/formats and these may be much more challenging than you expect. Most often ERP will demand much more data than you may have in existing systems/formats. Well-planned data migration will ensure that the ERP implementation is done within the scheduled time and budget. Poor data quality and integration are one of the most common causes of delayed implementation and cost over runs.
