Intellika Blog

Intellika experts discuss the key initiatives of business transformation and accelerating innovation.


Top 3 Reasons Why ERP Fails

Hello to each and every one of you. We, at Intellika Technologies, hope you are doing well. Please take good care of yourself as the flu virus is in the air. If you are thinking that we do really care for you, well, that’s what we do. So, there is no reason why we shouldn’t talk to you about reasons why an ERP project fails at times. Today, we will talk specifically about the top 3 reasons why ERP fails. Fasten your seat belts and come with us on this short journey.

Man, in order to decrease human effort, builds machines/software/tools. But they cannot work all by themselves. They reduce man’s labor, but do not completely minus it. Someone should be around to supervise how it works, and pass on various commands when needed. And if this bit is not done correctly, then the machine produces a failed result.

That said, let us focus on the top 3 reasons why ERP fails. An ERP (Enterprise Resource Planning) system is important for the healthy functioning of a company. It helps a management understand how happy its suppliers, workforce, customers, etc. are. It is one of the most rewarding investments you can make. However, the problem is that it needs to be instructed with the right set of commands. In order for a smooth functioning, an organization needs to be fully aware of what is expected of an ERP, and that if you expect a lot of work done, you might have to even migrate to a much more advanced ERP system. And here is where most companies go wrong. Let’s take a closer look at 3 reasons:

1.     Insufficient testing of the software based on your organization’s requirements

It is most important to identify the need of your company. A detailed plan of what is required of your ERP needs to be worked upon. Be sure not let your plan revolve around assumptions. It has to be based on statistics and real time analyses. Once the strategy is ready, it is time to test your ERP project. The purpose of this test is not to see if the software works. It is rather to make sure your ERP can meet the demands of your business.

2.     Not customizing your ERP software to do what you require of it

Once the test is complete, it is time to customize your ERP to do what you require of it, based on the results it provides. Customization is usually the break or make factor for most companies, because they consider this pit-stop unnecessary, time consuming, and expensive. But spending a little effort, money, and time here will save your organization a great deal in the future. Shocking as it sounds, a recent survey shows that under 20% respondents customize their ERP. Sad!

3.     Lack of training and experience

Training is a critical step. An experienced ERP user is to your company what an experienced surgeon is to your body, or what an experienced mechanic is to your favorite car. So either conduct an intensive on the job training for your team, or outsource it to an experienced consultant or vendor.

By the way, did you know that we also are ERP specialists? Yeah, that’s true. You can count on us to learn more about the working of an ERP or a brand new software. Simply write to us, or leave a comment with your queries below. Goodbye!

Team Intellika

Add comment