9 reasons ERP implementations fail—and what to do about it
An Enterprise Resource Planning (ERP) system is crucial to organizational operations, tying the knot between all aspects of your business. It’s so beneficial, in fact, a 2022 Gartner study showed that 53% of IT decision-makers saw an ERP as an investment priority.
But as with any change, it’s not without challenges—starting with implementation. When it’s not done right, you’ll struggle with user adoption down the line and lose confidence in the power of your investment.
The good news? These challenges are avoidable. Here are the top reasons ERP implementations fail—and what do about them:
1. Lacking a thorough scoping phase
Expectations need to be set from day one. To ensure the best fit for your organization, complete an exhaustive inventory of current operations, roles and responsibilities, and key pain points—making sure you are aware of all business requirements for design. Less change orders down the line means quicker adoption and an easier transition.
2. Late involvement of key stakeholders
An ERP system touches every aspect of your business—from supply chain to HR and finance. Involve these stakeholders every step of the way for alignment of your system’s intended future use and process flow going forward. You’ll keep the right people in the loop, and they’ll be better able to communicate the new changes and manage disruption to their teams.
3. Lack of a strategic vision
An ERP shouldn’t be integrated into your processes after go-live. Make sure it fits into your overall business strategy to track to different benefits—like improved customer service and crafting a sustainable competitive advantage.
4. Inadequate planning and resourcing
You can only move as quickly as your team. Create a clear timeline with expectations for each involved party. This will keep everyone (and the project!) on track. Another plus? Greater accountability and status tracking leads to better visibility for leadership.
5. Insufficient program governance
We recommend initiating a framework for how all major decisions will be made, mitigating bottlenecks throughout.
6. Unclean data
If one of your goals is easier reporting through an ERP, implementation is only half the battle—you’ll also want to check your data hygiene and upkeep to make sure your numbers are reliable and ready to use.
7. Competing priorities across stakeholders
Integrating a new system doesn’t mean that your old processes stop—and your SMEs can’t abandon their day-to-day activities despite project demands. Resourcing is critical to keep your operations afloat. Backfilling will help rebalance your workload and create positive change with your investment.
8. Ineffective change management
If your teams aren’t bought into the technology or are unclear of how to use it, you’ll be fighting an uphill battle for adoption. Show quick wins along the way and get them excited for the potential.
9. Assuming upskilling stops with go-live
Even when you cross the implementation finish line, the integration isn’t over. Keep up to date on the regular system updates and releases to make the most of the tool.
We get it. It can seem like a lot. But having the right resources in place can help guarantee a successful ERP go-live. And when it comes to program governance, project management, finance and accounting SME needs, and resourcing, we’ve got just the team: qualified across various roles, processes, and functional areas, ready to integrate seamlessly as an extension of you.
Read our case study to see us in action and explore our ERP offerings.