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Risks Associated with ERP Implementations – Poor Project Planning

You hear time and time again about the high number of failed ERP implementation projects. Some statistics that are put out there really have to make some people question the risk vs. reward that comes with enterprise resource planning solutions. But failure is a loosely defined word when it comes to these studies. If the project runs over budget or it takes longer than anticipated; these can be considered failures. More serious failures come when the ERP solution is wrong for your business. Maybe it is not specific enough to your industry or perhaps it causes major operational interruptions. Regardless of how serious the level of failure is, the good news is that they can all be prevented through good project planning.

The first mistake

Research from Capterra shows that one third of all companies surveyed did not demo their ERP solution before they purchased it and 22 percent of companies reported that they just purchased the first system they looked at. If you asked someone in these companies why they purchased an ERP solution in the first place odds are that they bought the software because they are “supposed” to have one.

Not having the right reasons for implementing an ERP solution is the first mistake companies make when planning their implementation project. The reality is, there are many benefits that come with ERP solutions. You just have to have a realistic understanding of how the software is going to help your business so you can set goals to measure its success.

Not admitting to your lack of experience

Many times, organizations will take the on the implementation project internally. If someone has experience with this type of project that might work out, but this is rare. Most companies that find success in their ERP implementation did so because they understand that they stand to benefit by looking outside their company for help. If you go outside of your company for project management support you want to find a partner who has experience working with ERP systems specifically, not just enterprise software.

Another area where an experienced consultant/project manager helps comes from their ability to take a more assertive approach to manage decisions that may be considered questionable; like buying the first application you see. Having an outside voice that is not beholden to the office politics helps everyone see the big picture a bit clearer. With the right research and enough transparency they will be able to see exactly what your company needs from your ERP software.

A poor project plan, and a poor project manager, can spell almost certain doom for the success of this venture. Whether failure is measured by overruns or by complete operational collapse, your company does not have to be a statistic that feeds into fear. Taking the time to put together a strong plan put together by someone with experience can not only help minimize areas that may cause problems, but also identify issues before the spiral out of control.

The post Risks Associated with ERP Implementations – Poor Project Planning appeared first on Merit Solutions.

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