Reason # 1: Poorly Defined Goals for the ERP Software

Many companies see the introduction of ERP software as the magic bullet solution to all their people and productivity problems, but don’t take sufficient time to define the specifics of what they’re trying to accomplish or how they’ll measure what success should look like.

It’s important to have a clear documentation of what exactly you want to achieve with the ERP system and where the priorities lie. When you don’t have a detailed map of where you want to go, guiding you each step of the way, you’re likely to get lost amidst the dangerous distractions of office-politics, short-term thinking, and minor setbacks that turn into project derailments.

Some goals that PMTrack ERP is sure to achieve are:

• No stock mismatch between actual and reported
• Improve collaboration between departments
• Automate and standardize Process workflows
• Provide accurate and up-to-date business analysis
• Accurate OEE data
• Better Deliveries against schedule: OTD and OTIF

Reason # 2: Lack of Sufficient Management Commitment

Most companies know that an ERP project requires a considerable amount of commitment and sometimes overtime work from employees, in addition to maintaining the day-to-day operations. But what about the management team?

Leadership that’s disengaged or too busy can kill a project in its tracks. An ERP implementation isn’t about pushing a button and everything happens automatically: it takes time and careful attention to get it right.

In order to succeed in the ERP implementation, the project team needs strong (and vocal) support from management. Communicating clearly and frequently with the company about the expectations for the project, helping free up the resources needed, maintaining a positive attitude and energy, showing appreciation, and making themselves available for planning sessions are key ways the management team can help overcome this Reason.

Reason # 3: Missing Expertise on Project Team

Every ERP implementation should be approached methodically. This starts with assembling the right project team, consisting of a project manager, key users and IT staff. To avoid later knowledge gaps, the key users should cover all relevant business areas, including purchasing, marketing, sales, production, controlling and planning. The team needs to possess the right skills for the job, and needs a leader who deploys their skills well in a coordinated fashion through the ERP implementation.

Characteristics of a good project manager:

• close to the daily business issues
• deep insights into all departments and processes
• organizational skills
• assertiveness
• social competence / teamwork

The project team is well supported by a project manager from PMTrack, who drives the overall implementation process based on an implementation methodology, defines milestones together with the team and provides valuable input.

Reason #4: Lack of Open Communications

Many ERP implementations suffer from inadequate communication between management, the project team, employees, and the software provider. If key questions and concerns go unanswered, rumors and negativity can take hold, creating yet another obstacle for the implementation team.

Instead, communicate openly from the beginning. In the weeks leading up to the implementation kickoff, put the tools in place to ensure a continuous flow of information and maximum project transparency. For example, set up a regular meeting time each week between the ERP project manager and management team. Schedule regular information sessions for the employees. Make sure documentation, to-dos and current project progress will be easily accessible to all involved. It is far, far better to err on the side of over-communication rather than under-communication. When your people don’t clearly understand the day-to-day progress of the ERP implementation, and where it’s going next, you have a communication problem to fix.

We in the PMTrack implementation set-up a whatsapp group right in the beginning.

Reason # 5: Production Processes Not Clearly Defined

In order for an ERP system to map the processes in your company, the current processes must be clearly and thoroughly documented including the routing and Bill of Materials (BOM).

This is the time for minor optimization of the process not an overhaul! PMTrack can help you evaluate your processes and find areas for minor improvement before they are mapped in your ERP. It pays to reevaluate and reorganize your workflows.

The key questions are

• Which processes are really necessary and useful?
• Which processes can be made more efficient with the help of the PMTrack software?
• Which workflows have not been updated recently, even though processes have changed?

Be open and flexible too, if the new software cannot reproduce a specific process exactly as you are used to, it may make sense to tweak your process rather incurring the cost of custom programming. PMTrack supports multi-level BOM and offers full customization..

Reason # 6: Underestimating Data Migration

The transfer of old data into the new system is an often overlooked and underestimated aspect of a successful ERP implementation. The data migration is not limited to a simple Excel export and import, but all data must be targeted and meticulously prepared/checked before go-live.

In addition, many people wrongfully believe that they will be able to automatically increase the quality of poorly maintained data with an ERP project. The data quality in the new system will only be as good as the quality of the migrated data. As the old saying goes, “garbage in, garbage out.” To avoid this problem, duplicates, spelling errors or bank account details etc. should be corrected before migration.

Double-check all the master data before migrating it to PMTrack.

Reason # 7: ERP Projects Fail Due to Fear of Change

Companies should be prepared for the fact that not every employee is enthusiastic about the ERP implementation. After all, jobs and processes are changing, information is becoming more transparent, responsibilities may be redistributed – this change is sometimes met with fears and resistance. It is therefore important to communicate to each department the concrete benefits of the ERP project for daily work and to familiarize employees with the new system through workshops and training. When employees understand why the change is happening and the benefits the change will bring, they have a foundation for moving from fear of the known to increasing comfort with the change process (i.e., the ERP implementation).

Conclusion: Implementation needs expertise!

The truth is that most ERP projects do not fail because of the functionality of the ERP software. They fail because of the ERP implementation process. The solution? Prepare your company and your team for the introduction of ERP to mitigate these risks.

The complexity and challenges of an ERP implementation are not to be underestimated, because the process requires the careful coordination of your systems, processes, and people. But with good planning and solid process organization, the obstacles can be removed and complexities can be clarified.

Support from an accomplished ERP manager on the part of the software partner contributes significantly to a smooth ERP implementation, as well as a proven implementation methodology. For medium-sized companies without in-house expertise, the experience and competence of the ERP provider should be a key factor in the selection process. You want an experienced partner who’s seen it all before, and helped companies successfully navigate every challenge along the way.

Knowing these pitfalls, PMTrack has been made very user friendly and we have built the competence with ERP projects through success with over 75 ERP implementation. We believe that some of the most important strategic steps happen at the beginning stages – as the companies populate all the master data and user rights. The consequence: mistakes at the early stages set the whole project off on the wrong track.

Interested in learning more about PMTrack and our tried and tested ERP implementation Process? Call us today!