Learn how to plan, test, train, manage, support, and evaluate your ERP system to prevent failure and optimize performance.

Resistance towards change management process, no/little commitment from higher management, absence of user responsibility to take process ownership, lack of training, adhoc approach to resolve the chronic issues. Parallel running systems.

What are the most common ERP system failures and how can you mitigate them?

Enterprise resource planning (ERP) systems are software applications that integrate various business functions and processes, such as accounting, inventory, sales, human resources, and customer service. They are designed to improve efficiency, accuracy, and collaboration across the organization. However, ERP systems are not without risks and challenges. In this article, we will discuss some of the most common ERP system failures and how you can mitigate them.

1 Poor planning and scoping

One of the main reasons why ERP projects fail is because they are poorly planned and scoped. This can lead to unrealistic expectations, budget overruns, scope creep, and misalignment between the business needs and the system capabilities. To avoid this, you should conduct a thorough business analysis, define clear goals and objectives, identify the key stakeholders and users, and establish a realistic timeline and budget. You should also choose an ERP system that fits your industry, size, and complexity, and that can be customized and scaled to your specific requirements.

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Muhammad Imran

Transforming Global Ecommerce into the Future of V-Commerce
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Resistance towards change management process, no/little commitment from higher management, absence of user responsibility to take process ownership, lack of training, adhoc approach to resolve the chronic issues. Parallel running systems.

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2 Inadequate testing and training

Another common cause of ERP system failures is inadequate testing and training. Testing is essential to ensure that the system functions as intended, that it is compatible with your existing systems and data, and that it meets the quality and security standards. Training is equally important to ensure that your staff can use the system effectively and efficiently, and that they are aware of the benefits and changes that the system brings. To avoid this, you should allocate enough time and resources for testing and training, involve the end-users in the testing process, and provide ongoing support and feedback.

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Scott Boedigheimer

Partner | Integrator | Disruptor
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Cloud-based ERP solutions constantly evolve and require frequent updates to keep up with the latest features and security patches. However, updating your ERP system is not as simple as clicking a button. You need to ensure that the updates do not break any of your existing processes or integrations. This is why testing is essential for any cloud-based ERP implementation. Therefore, if you are planning to implement a cloud-based ERP solution, make sure you consider testing as a key component of your project. And if possible, automate your testing as much as you can. This will help you achieve a successful and smooth ERP implementation that meets your business needs and goals.

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3 Resistance to change

A third common cause of ERP system failures is resistance to change. ERP systems often involve significant changes in the business processes, workflows, roles, and responsibilities of the organization. This can create fear, anxiety, confusion, and resentment among the staff, especially if they are not consulted or informed about the reasons and benefits of the change. To avoid this, you should communicate clearly and frequently with your staff, explain the vision and value of the ERP system, solicit their input and feedback, and address their concerns and issues. You should also create a change management plan that includes strategies for managing the cultural, behavioral, and technical aspects of the change.

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4 Lack of support and maintenance

A fourth common cause of ERP system failures is lack of support and maintenance. ERP systems are complex and dynamic, and they require regular updates, upgrades, patches, backups, and troubleshooting. Without proper support and maintenance, the system can become outdated, unstable, insecure, and inefficient. To avoid this, you should have a dedicated team or vendor that can provide timely and reliable support and maintenance for your ERP system. You should also monitor the system performance, usage, and feedback, and make adjustments and improvements as needed.

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Ajith Prasath Kumar

Oracle SCM IT Analyst at Logitech | Ex-TCSer
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Application support is key for every business, without support team and proper maintenance even the well build ERP also will fail to move the business to next stage. we need a dedicated team to analyze, monitor, perform assessment , perform weekly maintenance and provide support month end activities . also if any new process that yet to be implemented in the ERP as a analyst you need to coordinate with build team and build it.

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5 Unrealistic expectations

A fifth common cause of ERP system failures is unrealistic expectations. ERP systems are not magic bullets that can solve all your business problems and deliver instant results. They are tools that can help you optimize your business processes and performance, but they also require time, effort, and investment to implement and use. To avoid this, you should set realistic and measurable goals and objectives for your ERP system, track and evaluate the outcomes and benefits, and celebrate the successes and learn from the failures. You should also be prepared for the challenges and risks that may arise during and after the implementation, and have contingency plans in place.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Peter Gumisiriza

LECTURER, UGANDA TECHNOLOGY AND MANAGEMENT UNIVERSITY, KAMPALA, UGANDA
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Never give up.try and try again and again I. First attempt is just beginning. Learn as you move along. Don't fear making mistakes. Love and trust your vive and intuition. Move on and ride along.

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What are the most common ERP system failures and how can you mitigate them?

1

2

3

4

5

6

1 Poor planning and scoping

2 Inadequate testing and training

3 Resistance to change

4 Lack of support and maintenance

5 Unrealistic expectations

6 Here’s what else to consider

Information Systems

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What are the most common ERP system failures and how can you mitigate them?

1

2

3

4

5

6

1 Poor planning and scoping

2 Inadequate testing and training

3 Resistance to change

4 Lack of support and maintenance

5 Unrealistic expectations

6 Here’s what else to consider

Information Systems

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