7 reasons in ERP implementation failure (Part 3)
Reason 6: Availability of accurate data and structures
The accuracy of the data generated from the ERP system is as good as the data entered into it. Many companies spend more on the software than on the right person and right amount of time on this part of the process.
How to overcome this potential failure? If you want the ERP system to be successfully implemented, it is always good to make sure that the data provided is accurate and structured from the start. A good ERP implementation plan and team, both in-house or out-sourced can provide the needed formula on getting the work done. Proper planning also ensures that the project starts on time and completes on time. Make sure that the right person is placed in charge of this aspect of the project.
Reason 7: Poor planning
An ERP software can enhanced whatever good process and workflow that is currently operating in the company or expose the flaws and faulty concepts of the company.
How to overcome this potential failure? Before thinking about implementing an ERP software, it is always good to do a reality check. This means looking through your organization to see what areas need improvement and make changes to it first. For example, you might notice that there is no proper process for procurement and procurement planning. Putting in an ERP software does not mean that the procurement problem will immediately be solved. Since the ERP requires a proper workflow from PO generation to goods receipt, the user needs to be familiar with these processes. If these processes are not in place, one of the first thing to do is to put in place a standard operating procedure for the procurement department and streamline the procurement process. Once this internal audit is done, and the process flow in place then you can start choosing your ERP solution. The same applies to all other departments in the organization.