ERP implementation is a complex project, as it involves all areas of the company and inevitably impacts the business. In the long term, the impacts are positive, as ERP integrates data and processes, bringing opportunities for innovation and increasing efficiency. However, during the implementation of the ERP, problems may occur that affect not only the operation, but also increase the time and cost of the project.
“There is an idea in the market that ERP implementation is always expensive, takes a long time and brings little effectiveness. This happens because it is common, in certain suppliers, to have problems at the turn of the system, which, in fact, is a critical moment. When this happens, the company is left without production, without invoicing, it is a real problem. But it is possible to anticipate and mitigate the risks”, says Thiago Queirós, manager of the Projects, Consulting and Experience areas at Vockan Consulting, QAD‘s exclusive representative in Brazil.
Common problems in ERP implementation
Next, learn about the main problems in ERP implementation and learn how to avoid them.
1. Lack of alignment with the business
The choice of Enterprise Resource Planning must be aligned with the strategy. According to a 2022 Gartner study, 70% of ERP strategies are not aligned with business strategies. Thus, if the objective is to improve quality processes, for example, it makes no sense to invest in a system whose strong point is sales.
Likewise, if the chosen system needs to be overly customized to meet the needs of the company, it is probably not the best choice. Or else, the company is very attached to its previous processes and has difficulty opening itself up to the innovations that an advanced Enterprise Resource Planning can bring.
- Choose solutions approved in the best industry practices.
- Choose specialist partners in your industry.
- Drive team engagement during the project and post-implementation.
2. Unavailable resources
It is common for companies to leave the ERP implementation project in charge of the IT team, however, all business areas must participate, as everyone will use the system on a daily basis. Therefore, a representative from each area of the company is needed, but not only that: this person must have extensive experience in the operation and, in addition, time available to dedicate to the project and autonomy to make decisions.
“In general, companies don’t want to allocate professionals they consider indispensable in the operation, but it’s necessary, because the people who are dedicated to the ERP implementation project are deciding the future of the company. It has to be the best”, says Queirós.
- Dedicated teams.
- Protect the project team’s time.
- People with industrial experience.
- People with autonomy and a sense of ownership.
- Keep resources available where and when needed.
Project governance is the use of management tools to ensure that the project is implemented according to the objective. Some common governance issues are: lack of visibility and communication, scope deviation and precarious control of time and costs, schedules that do not reflect reality, inadequate tracking and support for points of high criticality, such as data review and loading, testing and validation.
It is the lack of governance that extends the deadline of ERP implementation projects and increases the cost 3 to 4 times more than originally budgeted, according to a 2022 Gartner study.
- Project with active and structured governance.
- Invest time in planning.
- Develop a responsibility matrix.
- Make the mapping and a risk mitigation plan.
- Track critical success factors.
- Have an organizational change management plan, as they may occur, such as employees that leave the project or merging with another company.
Differentials of Vockan and QAD ERP
Governance is Vockan‘s differential in QAD ERP implementation projects. The structured work method avoids surprises with costs and deadlines and aligns communication and project expectations. This is due to deep experience in industry implementation and rigorous, ongoing training and certification processes.
With Vockan, you can reduce your team’s working time, as we have work instructions, training materials, test scripts and metrics. Talk to a Vockan consultant to find out how we can help your company achieve peak performance.