9 Top ERP Implementation Challenges You Need to Know

Implementing a new ERP system is not for the faint of heart. Of course, the goal is to achieve greater efficiency and productivity, but experiencing hiccups along the way can test your resolve and leave you second-guessing the decision.

Understanding the potential pitfalls of ERP implementation will keep the project on track, keeping your stakeholders happy and your sanity intact. A little time spent considering possible roadblocks in the process will go a long way toward ensuring a smoother transition. To help you out, we’ve gathered nine of the most common ERP implementation challenges and how to avoid them.

What Can Make ERP Implementation Difficult?

Clearly, there is complexity in ERP software systems. The situation can be even more complicated for larger companies with sophisticated business processes. As ERP software offers universal solutions, it will integrate with many different departments. Therefore, it is essential that the lines of communication throughout your organization are efficient and effective.

Before commencing your ERP implementation, consider these challenges and how they may apply within your company.

1. Securing Commitment from Top Management — If your executive team is fully behind the project, many challenges will be resolved before they can take hold — for instance, sourcing appropriate levels of staff for the workload and procuring adequate funding. When the messaging from top management is clear that this is a priority, it empowers the workforce to rally behind the project and lend support as appropriate to their roles. Accountability also becomes easier.
2. Getting Buy-in Across the Organization — It may seem obvious to you, but the importance of a successful implementation may not be so apparent to stakeholders. Therefore, take the time to educate them on some of the challenges that may come up during the ERP implementation rollout. When they have a better understanding of getting this right, the time spent will be well worth it.
3. Selecting the Right ERP Vendor — Do not underestimate the value of exploring what ERP options are available to you and specifically how they can meet your organization’s needs. Many claim to cover it all, but seek out some peers in your industry and see what they think of their ERP system. What is working for them? What hasn’t lived up to its promises?
4. Building an ERP Project Team — Interdepartmental collaboration is crucial in making up your project team. Each department will have a different skill set and knowledge base that will round out the team. However, a note of caution: take into account the mix of personalities you choose. You want a group that will mesh well together and enhance the overall effectiveness of the team. Additionally, you’ll need the support of the various department managers as they will need to allocate and cover staff time for the implementation project.
5. Managing Your Budget — During the ERP implementation process, you may discover needs that were not initially addressed. While it’s true that an ERP system is an investment that, if done right, can pay for itself in cost savings in a short period of time, prudence must rule the day. Changes can quickly eat through a budget! Thorough planning ahead of time is fundamental to the process, as well as being resolved to make tough decisions when issues arise during the process.
6. Setting Clear Expectations — Transparency and communication cannot be overemphasized in such a universal undertaking as ERP implementation. No doubt, everyone throughout the organization will have their own views of what a new ERP system will accomplish. Good, thorough communication will help all to understand what it will do and what it won’t do. Also, don’t forget to include anticipated timelines and the level of commitment you expect to ensure a successful transition. These steps will encourage everyone to see the change as a positive move for the organization’s future.
7. Managing Change — Even at the best of times, change can be difficult. With all the best preparation in the world, you will probably still encounter resistance in some corners. Under these circumstances, a responsive project team can work wonders in allaying the concerns of their fellow colleagues that these challenges will be overcome.
8. Planning Necessary Hardware Upgrades — Implementing an ERP system on-site will require careful consideration of your existing infrastructure and hardware. Is it up to snuff to handle the upgrade? Nothing will erode end-user confidence more than a slow-performing system! Do not underestimate the need for hardware upgrades to bring your new ERP system to life.
9. Expecting the Unexpected — No matter how thoroughly you have planned in advance, you should still anticipate encountering some hiccups during your ERP implementation. Unforeseen events occur: new requirements may emerge in the midst of implementation, staff changes may impact the project team, and budgetary pressures may shift. While planning your project, remember to include a strategy for unexpected changes.

More ERP Implementation Issues

By considering the above challenges, you will avoid most of the common problems with ERP implementation. However, here are some specific issues you should be on the lookout for:

1. Unclear Requirements — It’s tricky to envision every last detail of every business process, and it can be thorny to address a previously unidentified requirement midstream implementation. Start by defining your business goals very clearly. Be sure to include feedback from a broad range of collaborators to aid you in the planning process.
2. Scope Creep — Once implementation is underway, you will likely receive well-intentioned suggestions for new capabilities. However, this leads to more work and a bigger budget requirement. Stick to the clearly defined business goals you’ve already set and deal with new requests after the completion of the ERP implementation.
3. Insufficient Staff Commitment — When choosing your ERP project team, consider each member’s accountability for carrying out their role in the process. You need a dedicated team willing to do what is needed to see the project through despite inevitable challenges.
4. Data Quality Issues — No ERP implementation process could be considered successful without the migration of your data from the old system. It is crucial to know which data will be transferred and whether the quality of the data is sufficient for the migration.

How to Overcome ERP Implementation Challenges

Avoiding issues in implementing a new ERP system is achievable. Or, at the very least, these issues can be diminished. Here’s how:

• Clarify Priorities: Write down your priorities and use them to define your business goals clearly. Successful ERP implementation comes from the executive team and ERP project team working toward a shared vision of what is most important.
• Communicate Progress: Proactively updating your organization — what steps have been accomplished, what is next on the horizon, and what they can expect in the end — will help all to feel more invested in the project’s success. In addition, it helps to alleviate any apprehensions or concerns.
• Use Your Executive Sponsors: When unexpected implementation issues arise, consult your executive team. Ask them to rally the mid-management team, reallocate staff as needed, and bolster support for any decisions you need to make as the process progresses.
• Select the Right ERP Implementation Partner: Perhaps the most important step you can take is to pick the right ERP partner. Choosing an expert to guide the process is as invaluable as a coach is to a sports team. There is no reason for you to fumble through the process on your own. Look for an organization that has a good record of successful ERP implementations and knows your industry well.

Getting Started

If you would like help selecting the best type of ERP implementation for your organization, the experts at WM Synergy would love to speak with you. For every client we work with, WM Synergy will take the time to get to know your business, identify the right Manufacturing ERP solution or Distribution ERP solution to fit your needs, and help you select the ERP implementation methodology that best suits your company.

By WM Synergy

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