Organizations are spending lots of money and time to get a successful ERP implementation to improve their performance and ROIs. After large investment on software sometimes organization is failed to get successful ERP implementation. In this case, much of time vendors are the targets for blame. But, it is not true all the times. Following are the reasons for implementation failure: ERP system logic is not correct, poor performance of the functions, user failed to operate properly, wrong software selection, wrong vendor selection etc.
Success factors for implementation are selecting the right implementation partner, perfectly matched software (previously implemented in same vertical), proper training to the users, and most importantly involvement of top management.
* Implementation strategy is failed to drive business process design and deployment - it should be module wise with proper training to users.
* Due to much long implementation than expected - timeframe should be decided carefully with limited customization; scope of work should be defined in planning stage itself.
* Lack of pre-implementation preparation - pre-implementation activities are required to implement successfully.
* People are not well prepared to accept and operate with the new software system - involvement of people is possible with the help of top management involvement. If top management is involved then all employees will be involved.
* The cost to implementation is much greater than anticipated.
Do not create wish list to implement at first stage.
The purpose of ERP implementation is to support the business processes. One should keep in his mind that there in no magic in these software. Expecting a fast and quick solution can create dangerous results. Any advanced ERP software can not offset the problem of a flawed business strategy and poorly performing business processes.
Define a proper business strategy that will give you a competitive advantage then analyze your present business processes and develop your objectives. ERP software can support your strategic planning and process objectives better. Implementation should be led by top management or senior employee who has the authority to make changes.