6 Common Challenges of ERP Implementation | YourShortlist (2024)

Implementing a new ERP system doesn’t have to be complicated, especially if you know what to avoid in the process.

ERP implementation can be one of the most intensive processes undertaken by a business. Careful planning and effective management are therefore essential when trying to remain on-time and on-budget.

Installing an ERP system will affect your entire business, so it’s only natural that a number of challenges arise. However, these difficulties shouldn’t stop you from enjoying the benefits and positive outcomes of a new ERP system.

In this guide, we have listed 6 common challenges of ERP implementation to help you select, test, and deploy the right ERP solution for your organisation.Let’s dive in!

1. Working out which processes need to be integrated

The first challenge of ERP implementation is trying to work out which of your already existing processes and systems would benefit from an ERP integration and which of these would end up impeding the workflow of your business. This is especially difficult for organisations with different competing divisions.

Without an ERP system, companies waste valuable time pulling together fragmented data from different spreadsheets and sources. By integrating your current systems and work processes with an ERP solution, you can ensure that there will always be one source of all data within your organisation.

2. Inadequate flexibility

If an ERP system isn’t adequately flexible, your company may have to adapt its processes to suit the ERP for it to work. This may seem a little backwards, and the time and resources it would take to reorganise your business and retrain your understandably reluctant team would not seem worth it.

However, by choosing the right software for your specific requirements, you will ensure that your integration is seamless and thereby eliminate the lack of flexibility, as well as other challenges of ERP implementation.

3. Resistance to change

Despite the clear benefits of ERP solutions, people just really don’t like change, and replacing such an integral system will inevitably lead to resistance and delays from your team. This is worse if your team don’t fully understand the importance of implementing the new ERP system.

Always take your time to properly train your staff before implementing your new software. Focus on why the new ERP will make their daily tasks easier, rather than more complicated.

4. Not properly vetting vendors

It happens all the time; an IT buyer is swayed by a silver-tongued marketing team, but it’s only once the system is implemented that you realise how restricted the functionality is and how it will affect your existing best practices.

Never implement a new software without properly vetting the vendors. We recommend meeting at least 5 different providers before making a final decision. If you think this sounds too complicated or time-consuming, you can get in touch with one of our ERP experts here at YourShortlist and we’ll do all the hard work for you – completely free of charge and with no obligation to purchase.

5. Maintenance costs

All ERP systems need regular maintenance, which comes with associated maintenance costs. An ERP system might seem cheap to start with, but if you don’t factor in the maintenance costs attached to it before implementation, you can end up with overwhelmingly large sums to pay. You should also keep in mind whether the software will be supported in the longer term and ensure that your chosen vendor or software partner is able to provide adequate support for several years to come in order to make implementation worthwhile.

Read: Understanding Microsoft Dynamics NAV End-of-life Support

6 Common Challenges of ERP Implementation | YourShortlist (2)

6. Not understanding or using key features

Though businesses can invest millions into their ERP system, users frequently aren’t aware of what they are using or the features that are available to them. This means that businesses frequently miss chances to automate their business processes, speed up functionality, leverage industry-specific features, and meet more targets.

Your ERP Needs.YourShortlist.

As a key decision-maker, you’ll have to do your research before choosing the most suitable ERP provider for your business. Rather than struggling alone with the challenges of ERP implementation, why not speak to someone who can find the ideal software partner to help you meet your implementation targets.

AtYourShortlist,our goal is to make technology procurement simple, transparent, and cost-effective by matching businesses with the right software providers.

We’re all about helping our members understand, choose, and implement the solutions that will pay dividends and facilitate successful growth. We manage a wide database of over 680 software partners providing solutions inERP, CRM, cyber security, cloud migration, finance, IT, HR, and more.

Our non-chargeable service includes:

  • Independent buying advice on the best ERP system for your business
  • A bespoke shortlist of specially selected partners experienced in implementing ERP solutions for your industry
  • Partner background information
  • Free call-backs from partners with no obligation to purchase

Speak to a member of our team today to discuss your requirements and begin the journey toward a free, no-obligation shortlist tailored to your business;YourShortlist

6 Common Challenges of ERP Implementation | YourShortlist (2024)

FAQs

6 Common Challenges of ERP Implementation | YourShortlist? ›

The six-part ERP implementation phase lifecycle includes discovery and planning, design, development, testing, deployment and support.

What are the challenges of implementing ERP? ›

ERP Implementation: 17 Common Challenges (And How To Overcome Them)
  • Fear Of The Cost And Effort. ...
  • Establishing A Compelling Business Case. ...
  • Historical Objections. ...
  • Gathering Input From All Stakeholders. ...
  • Calculating The ROI And Lifespan. ...
  • Managing The Costs Of Implementation. ...
  • Unclear Business Processes. ...
  • Resistance To Change.
May 3, 2024

What are the 6 stages of ERP implementation? ›

The six-part ERP implementation phase lifecycle includes discovery and planning, design, development, testing, deployment and support.

Which of the following is a common challenge during ERP implementation? ›

Challenge: Effective project management is essential for successful ERP implementation, but challenges such as scope creep, resource allocation, communication breakdowns, and stakeholder management can hinder project progress and outcomes.

What are the 7 stages of implementation of ERP? ›

7 Important Steps for a Successful ERP Implementation
  • Step 1: Discovering Internal Matters. ...
  • Step 2: Selecting a System. ...
  • Step 3: Designing Your System. ...
  • Step 4: Installation. ...
  • Step 5: Testing. ...
  • Step 6: Deployment. ...
  • Step 7: Continuous Enhancements and Feedback.
Apr 9, 2024

What is the biggest challenge with ERP systems? ›

6 Common Challenges of ERP Implementation
  • Working out which processes need to be integrated. ...
  • Inadequate flexibility. ...
  • Resistance to change. ...
  • Not properly vetting vendors. ...
  • Maintenance costs. ...
  • Not understanding or using key features.
Dec 18, 2023

Why are ERP systems so difficult to implement? ›

ERP implementation is challenging due to its complexity, involving significant changes in business processes, technology integration, and data migration. It often requires substantial financial investment, comprehensive employee training, and organizational restructuring, leading to resistance and disruptions.

What does the 6 ERP stand for? ›

ERP stands for enterprise resource planning, but what does ERP mean? The simplest way to define ERP is to think about all the core business processes needed to run a company: finance, HR, manufacturing, supply chain, services, procurement, and others.

What is step 6 in the implementation cycle? ›

The implementation plan details the who, what, when and how much of your communication strategy. The plan covers partner roles and responsibilities, activities, timeline, budget and management considerations.

What are the 5 major steps in the ERP implementation? ›

The goal of ERP implementation is to improve the efficiency and effectiveness of an organization's business processes and to provide real-time data and reporting capabilities. It typically includes a series of phases, such as analysis, design, implementation, testing, deployment and maintenance.

What makes ERP implementation fail? ›

The failure factors in implementing an enterprise resource planning (ERP) solution include poorly defined system requirements, a lack of data hygiene, unrealistic project timelines, fluctuating budgets, a lack of executive buy-in, poor employee training and incomplete ERP testing before the system is officially ...

What are the risks of ERP implementation? ›

Risks of implementing an ERP system
  • Lack of Management Support.
  • Insufficient Project Management.
  • Overly Optimistic Scheduling.
  • Difficulty Finding Experienced ERP Talent.
  • Neglecting To Prepare and Train Employees.
  • A Poorly Managed Integration.
  • Poor Data Quality.
  • The Inability to Rework Processes.

What is the biggest challenge with ERP systems quizlet? ›

What is the biggest challenge with ERP systems? Customizing it to the needs of the organization. What is the largest benefit of a successfully implemented ERP system? Efficiency.

What are the four common ERP implementation strategies? ›

The most common ERP implementation approaches are the big bang, phased rollouts, parallel adoption, pilot implementation, and hybrid approaches. Your organization's approach should depend on its unique needs, resources, timeline, and goals.

What are the six steps in implementing software? ›

Steps to implement your software for a new customer
  • Pre-implementation preparation. ...
  • Communication and collaboration. ...
  • Customization and configuration. ...
  • Data migration and testing. ...
  • Training and support. ...
  • Post-implementation evaluation and optimization.
Feb 26, 2024

What are the golden rules for ERP implementation? ›

Golden Rules For ERP Implementation

Ensure top management visibly supports the project at Kickoff, status meetings etc. Hold firm on project scope and management expectations. Assign ownership of deliverables to business leaders. Effective change management and user training is imperative.

What are the three major categories of challenges for ERP? ›

In this article, we explore the biggest challenges that come with ERP implementation and how to overcome them.
  • Cost and complexity. ...
  • Integration with existing systems. ...
  • Change management.
Jan 12, 2023

What are the risks of implementing an ERP system? ›

Risks of implementing an ERP system
  • Lack of Management Support.
  • Insufficient Project Management.
  • Overly Optimistic Scheduling.
  • Difficulty Finding Experienced ERP Talent.
  • Neglecting To Prepare and Train Employees.
  • A Poorly Managed Integration.
  • Poor Data Quality.
  • The Inability to Rework Processes.

What are some major causes of ERP implementation failure? ›

The causes of ERP failure include
  • Poor software fit /inaccurate requirements.
  • Business leadership is not committed to the implementation.
  • Insufficient team resources.
  • Lack of accountability to make timely, high quality decisions.
  • Lack of investment in change management.
  • Insufficient training/support.
  • Insufficient funding.
May 28, 2024

What are the three disadvantages the organization might face while implementing ERP? ›

Key disadvantages include the high costs of ERP software, its complexity, slow implementation, and data migration. If you want your procurement process to be as efficient as possible, it's best to invest in a P2P solution that provides integration with an ERP system.

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