Implementing Enterprise Resource Planning (ERP) software and projects are no easy tasks. With many moving parts and personnel involved in the mix, the process becomes all the more daunting. To help avoid common pitfalls and offer some considerations, Software Advice, a trusted resource and advisory firm for ERP software buyers, recently conducted an analysis of 22 failed implementation projects and looked into the most common reasons for failure in this e-book.
The e-book notes that ERP implementation failure can often be attributed when one or more of the following key goals are not met:
- On-time implementation
- On- or under-budget implementation costs
- Minimal disruption to business operations
- Improved organizational efficiency
- Reduced operating costs
- Increased sales or revenue
One main takeaway from these is that “ERP implementation rarely fails because of the software itself,” as only 18 percent of the failures included in the study were due to buggy software.
To avoid implementation failure, it’s best if the organization take the time to do due diligence and fully research the ERP system, have personnel, particularly consultants completely understand the client’s needs and have a trusted vendor give you a realistic view of the system’s capabilities.
Implementing an ERP solution takes time, so it’s worthwhile to test drive the software and plan ahead for your IT team to prepare for the implementation and additional customizations and decisions that may need to be made at a later date.
Forrest Burnson, Software Advice’s Market Research Associate puts it best: “Regardless of the platform you select, the principles of a proper implementation remain the same: Know what you need and know what you're buying; get buy-in from all of the relevant stakeholders in your organization; make sure to actively involve your IT team in the implementation and listen to their concerns; understand that the software alone will not fix your business's problems—often your business will have to adapt to the software, not the other way around.”
To learn more about how WebSan Solutions can help your ERP implementation process, download our free ERP Whitepaper or take our ERP Assessment.
Linz Tan, Web Marketing Assistant, WebSan Solutions Inc. a 2014 Ontario Business Achievement Award Winner for Service Excellence
The foundations of ERP are found in manufacturing resource planning, traditionally used by companies which produced tangible goods in factories. The adoption of ERP and MRP systems was initially quite slow – management were content with the status quo and saw no reason to change what seemed to be working. However, the recession experienced in the late 1980s and early 1990s forced many companies to make a choice: Either find new ways of operating more efficiently and effectively, or go under. This created a massive boom in the ERP market, which lead to massive changes in the ways in which fundamental business operations were conducted, and those organizations that made it through the recession came out stronger.
North America is no longer the goods-producing collection of nations it once was and is instead dominated by service industries. However, many of the same problems that existed in manufacturing organizations twenty years ago still exist in these businesses: Lack of integration, inability to respond and take advantage of environmental change, time and money wasted on data entry and redundancies, and so on. Much like the recession twenty years ago, the economic downturn caused by the subprime mortgage crisis has forced many modern companies to find new ways of performing more effectively and efficiently.
This is the time to get ahead of the competition, and Microsoft Dynamics GP is the perfect solution for organizations looking for more than simple accounting and reporting features without high maintenance costs and complexity.
Everyone is connected! And companies can now gain access to their ERP system through mobile devices securely. Our previous discussion focused on the benefits found by sales personnel who can remotely access ERP & CRM data. In part two of our discussion, we will focus on industry specific benefits that can be gained.
While we all know that mobile devices have allowed employees to become much more efficient. However, many companies still require employees to be sitting at a work centre to access & input data. By mobilizing your ERP system, one can differentiate themselves from competitors & reduce costs.
Mail carriers have been recording your signature upon receipt for years, but what other uses can be found by mobilizing your ERP?
Consultants or engineers can assign their time to projects or input travel expenses all while waiting to catch a flight. Busy logistics professionals can supervise deliveries & shipments without being close to the warehouse. Maintenance staff in the utilities sector can be remotely tracked & that data directly visible in system reporting. Those working with chemicals would have instant access to quality & safety processes.
WebSan has found that companies that effectively implement mobilized solutions realized significant cost savings. Contact WebSan today to arrange an evaluation of your industry specific needs.
The truth about large-scale technology projects is that the majority of them actually fail. In fact, studies show that 65% of them fail!
If IT projects were airplanes, no one would ever get on one! So why do so many companies venture down that road and why do so many fail?
Here's the answer to the first part of that question : because, to remain competitive in today's market, you have to leverage the benefits of technology. Performing every function of the company manually, or with Excel, is just too time-consuming and costly to be competitive.
The problem is that as companies grow, employees literally invent processes in order to accomplish tasks. These processes are mainly work-arounds to "get around" inefficiencies in the current ERP system or other people in the company. The fundamental issue occurs when a new ERP system is installed and merely automates inefficient, manual, processes.
So how do we ensure that projects are successful?
WebSan consultants have years of experience implementing ERP solutions all over the world and this is exactly why we've created the "Unlock your Potential™" program. We align strategic business objectives and growth drivers with the real purpose of the project: increase profits and/or revenue. Our comprehensive process starts right from the first sales meeting that we have with a client/prospect.
In my next post I'll go into more detail on our process and the benefits of it...