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Not defining the requirements correctly
No or not a well thought up Project Plan
lack of directive or committment for stckholders on transition to ERP or change
Not defining the scope correctly
Not identifying resource needs correclty
Fall in to the trap of customiztion
Ultimatly out of the box is the best rout as most ERPs have industry standard workflows
I can Name a few:
· Business Philosophy: The “Philosophy of Change” has a pyramidal effect with Business Philosophy at the broad base, business processes in the Middle and productivity tools at the narrow apex. All three are needed to implement Change. Change normally involves introducing or upgrading systems and business processes in the quest for continuous improvement and achieving operational excellence. The Business must be 100% committed to following the dynamics of the market in respect of Systems and Business Processes and this message must cascade across and down the business hierarchy. Poor commitment from top management normally leads to low impact on the people involved in the implementation. Where Organizational changes are essential top management must be fully engaged to resolve conflicts that may bring the project to stalemate.
· People:The most important asset of an organization is People. People will carry the implementation through to Success or Failure. Therefore a successful implementation must ensure that people have accepted the way forward and own it. A successful implementation means involving, supervising, recognizing, rewarding and retaining those who have worked or will work closely with the system. Companies must involve all employees, and unconditionally and completely sell them on the concept of ERP for it to be a success. Without a team attitude and total backing by everyone involved, an ERP implementation will end in less than an ideal situation. People must know ahead and anticipate the transformation the implementation will bring about and believe in it.
· The Drawing Board:If the business is going to reap the benefits of the implementation, it must develop a plan for success. Just like any project implementation it must start from the design board, create a plan for the implementation, set measurable targets and goals proceed with implementation, measure progress etc. This must be undertaken by an internal project team who will work in close liaison with the chosen consultancy firm. The task will be to assess, looking at the whole, the business processes introduced by the specific ERP for potential, strength, capacity, capability, assess the extent to which current practice is different to the targeted, set well defined targets for employees to achieve in their own work environment and plan the implementation in well designed, practicable stages. Training and transformation of People should start at this stage where employees are sold on the concept and the expected transformation the implementation is intended to bring about. People need to know where they are asked to go and how to get there in clear well defined stages. Designing and implementing “as you go” may risk failure of the ERP all together. This must be done prior to the implementation, and must make an Initial impact on the employees leaving no one behind. The extent of the impact will pay more or less dividends during the ERP implementation. Resistance to change strangleholds, organizational culture, incompatibility of business processes and related issues must be dealt with at this stage.
· The Project team: The composition of team members plays a crucial role in ERP implementation. If a project team does not clearly understand the changes in its organizational structure, strategies, and processes from ERP implementation, it will not be in a position to benefit from ERP’s competitive advantage. In order to best implement ERP, project team members should be selected with a balance between members with business experience within the organization and external experts with specialties in ERP.
· Master data quality: I place a lot of weight on the master data quality. The applications and tools the ERP provides so that employees can do their jobs effectively all depend on availability of well structured master data. Because master data is often used by multiple applications and processes, inconsistent poorly structured master data can have a huge effect on the business processes. In the absence of master data governance processes, chaos in master data can prevail, particularly in Multi-ERP environments. Prior to ERP Implementation a rigorous assessment of master data quality should be performed; these are the master data that will be migrated into the ERPs item master and other supporting tables, and preferably undertake and implement a master data cleansing exercise and the relevant master data governance process that would aim at maintaining high quality of master data thereof.
· Geographic location of facilities-Availability/Reliability of data links: Communication between disparate structures, including hardware and software, is made possible in an ERP environment. Systems that were once incompatible can now be connected in order to share data and “tap into hidden information.” That hidden information, which is vital to strategic planning and maintaining a competitive edge, should be provided with less effort and in real-time. In technical terms, if a fully integrated Supply Chain is targeted, end to end, through ERP Implementation, unrestricted flow of information is necessary. Unreliable or non-available data communication links may necessitate centralizing certain functions or resorting to bespoke solutions to bridge the problem.
· Business Environment complexity/diversity: Depending on the size of the business and environmental complexity/diversity, an ERP implementation can be one of Herculean proportions. ERP integrates diverse business functions across an organization into one single system, necessitating a complex and integrated software package.
ERP implementation could be difficult: 1.if some business process are not described on hard and soft copy 2. if there is a conflict between IT softs which are applied inside the IT System
incomplete knowledge of the production and resource planning process by the ERP implementation team
- immature resource and budget planning processes implemented in the company
- untrained (IT) staff
- integration with legacy systems
- budget restraints
- time restraints
ERP implementation could be difficult:
1.if some business process are not described on hard and soft copy
2. if there is a conflict between IT softs which are applied inside the IT System
3. when during ERP integration data exchange with other systems could be complicated (misunderstanding)
4. when data (accounting data) in the old and new systems at the moment of transfer does not match
I don't copy a Wikipedia page, these are my own experiences in several ERP implementations.
There are several key factors that can have a strong negative impact on ERP implementation. These are the first that come into mind:
- incomplete knowledge of the production and resource planning process by the ERP implementation team
- immature resource and budget planning processes implemented in the company
- untrained (IT) staff
- integration with legacy systems
- budget restraints
- time restraints
- lack of involvement by key staff members, responsible for production planning and execution
ERP implementation in organizations is a "Change" process.
Each change will face a resistance from different stockholders.
We should apply change management theories and procedure during implementations.
We should not focus only on the technology side of ERP software package, nor the business side only.
We should maintain the balanced thinking and focus between the technology and business side of the ERP being implemented.
The process of selecting an ERP software package is not the decision of IT or Information Systems departments, it is the decision of the whole organization.
RP is core system and includes all departmental modules and interconnected for accumulative analysis and reporting purpose. Therefore it is measured with risk from all modules. It is obvious challenging one for every firm in ERP implementation.
1.Selection of Correct ERP for Required as Infrastructure
if not match then ERP Implementation a difficult task
I personally think it all depends upon Implementor and with a strategic approach you can always over-come some common issues that comes your way during implementation phase . A good home work and successfull testing with end users before every single implementation or integration does pays off.
I think there few most important factor which are key to the success of erp implementation.
1 Stakeholder Management: End-user accepting or resistance to change can lead to success and failure of any ERP implementation whether is custom erp solution or SAP or oracle. Positivity and acceptance to change and improve can lead to success of solution
2. P2S(Process to the system) rather than S2P (system to process) approach: Some agency or solution partner makes a grave mistake by forcefully trying to change the manual process to suit to system developed process. I think solution partner to try maximum to implement and map the existing manual process to the system, it will lead to easy acceptance. The process where system process is more wise than manual process, then it should be communicated well to all stakeholders
3. Effective and timely communication: Communication and discussion at right time with right stakeholder surely increase the chance of successful erp implementation. Understand requirement clearly, communicate & handle change request appropriately
4. Realistic Project Plan & Monitoring Deviation: Effective and realistic project plan help to identify the resource and time required to get a project completed. unrealistic project implementation plan lead to frustration and anxiety among all stakeholder
if a project manager handle this 4 point appropriately, I think the chance of getting successful erp implementation increases greatly
1. Continuos Operating Model Changes
2. Non Stability of Company Processes and procedures
3. Continous changes in the Organization structure.
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