9 Challenges that Every Organization Faces while ERP Implementation

ERP system is garnering immense popularity amongst organizations as it automates the business processes and centralizes data sources for all the organisation's departments. With ERP implementation, an organization creates a dynamic business environment and a competitive edge over others by using lesser resources.

Challenges in ERP Implementation

ERP Implementation Life Cycle is a difficult process as it changes the entire mechanism of the organization by automating all the manual processes. This shift is hard to crack, and here are 9 common challenges that most organizations face;

Team Selection

As ERP has become popular, many ERP software companies in India claim their solutions to be the best and cater to your organization's needs. However, do not blindly trust them, and do your own study about an ERP company based on its portfolio, clients, experience, industry verticals, etc.

Dedication and Passion from the Seniors

While the ERP Implementation, the senior managers are the primary deciders. Any lethargy or ignorance on their end can result in inefficient decisions and delayed operation, affecting the project's success. Having the senior team in the organization pumped up for the implementation process is one of the biggest challenges.

Training

As the implementation process is complete, the real challenge is resentment in employees for using it, leading to lower productivity. Thus, you can in no way let unskilled, or partially-skilled employees go on board. The selected team should be given adequate knowledge of the ERP software.

The time needed for Implementation

No ERP software is a 'one size fits all type, and every solution is customized as per the business needs. Thus, the first thing you need to understand is that ERP Implementation is a time-consuming process executed one step after prudent initiation, analysis, configuration, validation, deployment, and optimization.

Planning and Management

Estimating and predicting are the holy grails for a successful ERP implementation. Many entrepreneurs do not want to spend more or have extra staff for a system that is an add-on to the features and capabilities of a business alongside the original plan. However, keeping the goals clear and working on a realistic plan keeps the project on track. When the decision-makers are aware of the roadblocks and minor budget overruns before implementation, it eases the entire process.

Costs

As mentioned earlier, every ERP solution is tailored according to the organization’s needs. Thus, in ERP Implementation, the cost incurred is usually higher than the actual costs. It all boils up to the customization cost; the higher the customization charges, the more the incurred cost. So, it would help if you were ready for this cost and its effect on your overall budget beforehand. 

Retention Rate 

Regardless of the training imparted, many employees feel insecure and devalued after the implementation process is done, as the tasks they used to perform before are now done by automation. Thus, many such employees leave denting the business growth of the organization.

Testing

Testing does not mean checking whether ERP software functions seamlessly but assessing its performance and verifying whether it is up to the mark for the organisation's business needs. If not, it may need unplanned updates making it a costly affair.

Maintenance

A successful ERP implementation life cycle does not mean the process is over. ERP solutions need periodic maintenance, which incurs costs and might toll the organisation's budget. 

Final Words

These challenges should not intimidate an organization while ERP Implementation, but considering and working on them will make the process timelier and smoother.

Digigarage is one of the best ERP software companies in India that offers you exact customized ERP options for your business needs!