Why ERP Implementations Fail

ERP implementations can have a bad reputation. Surveys suggest that around half of all ERP implementations fail, costs are significantly exceeded, schedules are not met, and improvements do not live up to expectations. The reality is ERP software can fail because of an insufficient implementation process. Partnering with an agency is a great way to prepare your team for the introduction of an ERP, and to ensure that implementation goes smoothly and your new system is successful.

Benefits of an ERP System

Enterprise Resource Planning (ERP) is software that combines all departments and functions across a business into a singular system, while assisting each departments' specific demands. Modern ERP systems use prescriptive data analytics and AI tools to help create action plans based on objective statistics. ERP’s are designed to help businesses make smarter decisions, serve their customers better, and work more efficiently overall by automating processes and workflows. The ERP software market is estimated to reach $78.40 billion by 2026. An agency can ensure your business is ready for and properly leverages technology to adapt to the growing market. 

ERP Capabilities

• Enhanced Real-time Visibility
• Complete Customization
• Improved Efficiency
• Customer Service
• Data Security and Quality
• Improved Collaboration and Workflows

An Agency’s Role

Partnering with a skilled ERP implementation agency is the key to your success. Agencies can allocate resources and time to train their teams effectively and efficiently in various ERP tools. Strong agencies can do the following:

Set Defined Goals

ERP software is often marketed as a magic solution to all of a company's problems. While instrumental in the back-end management of a company, ERPs are not a solution to every business challenge. Often different departments expect different results and want different operational areas to be improved. While a useful tool, your ERP implementation can fail if you do not define organizational success. An agency helps your company set clear goals and figure out which requirements have priority. 

Help Management Commit

There have been countless times the implementation of ERP goes without a hitch, yet the system still fails because management wasn’t on board. If management is not on board or actively engaged throughout the process, then the implementation is destined for failure. Management should be directly involved with the implementation team and strategic processes. 

ERP implementations will affect a majority of the business processes. If leadership is not on board, other departments will follow with a similar attitude. An agency can guide managers through best practices and train them on ERP software. ERP implementations are twice as likely to succeed if proper training is provided. Agencies work with vendors directly to provide in-depth training models and support. As a result, the confidence managers have with the software increases. Additionally, agencies can provide supplemental tools, such as a CRM or PRM to ensure all business goals are met.

Training

ERP implementation should be approached methodically. An agency is able to leverage their experience and training to ensure your goals are met. By partnering with an agency, you gain their knowledge and cumulative experience. One of the most important things an agency can do during the ERP implementation process is to provide in-depth training to channel partners. 

A well-executed training plan will mitigate the transition process for teams, making them more likely to embrace the new processes. An agency that specializes in ERP is able to offer process-based training catered to different roles within your organization. Additionally, working closely with an agency allows for ongoing training. This in turn opens your company up to further development, ERP use, and growth through various channels. 

Data Migration

Transferring old data into a new system is often neglected and undervalued for a successful ERP implementation. It is a common misconception that ERP systems automatically increase the quality of poorly maintained data. Data quality will not differ from system to system. Instead, data becomes a tool for leveraging growth. An agency will partner with your business to ensure data integrity and quality in addition to providing training and tools to help you better leverage your existing data. 

Data migration is not confined to a simple Excel export and import, but all data must be targeted and carefully prepared. Prior to migration, it is important to correct duplicates, spelling errors, and card details. Prior to release, an agency will perform quality tests and ensure data is properly migrated. 

Customization

One of the reasons companies shift to an ERP system is due to the customization that is available. Panorama discovered that approximately 88% of companies will end up customizing their ERP, which requires additional time to implement and test. One of the biggest reasons ERP’s fail is because companies are too ambitious with customization. Often companies will customize beyond their capacity and do not have the resources or funds to implement additional functions. Customizations within your ERP system also require additional resources, like CRM integration, to ensure compliance with emerging industry trends. 

The complexity and challenges of an ERP implementation should not be undervalued. ERP systems often fail during the implementation process, but partnering with an agency can help to support your business and allow you to be victorious over the challenges with a proper integration process. ManoByte is equipped and ready to handle all of your ERP needs and help you effectively streamline your back-office processes.