ERP Health Check: 3 Signs Your ERP Project Might Be Failing

When was the last you time you ran a health check on your ERP system? Is your ERP system the right fit for your business? Or maybe have you outgrown your ERP software? Just as the human body needs a regular check-up, so does your ERP system. In fact, doing a regular check-up on your ERP system can save your projects from failing in the long run.

According to analyst firm Gartner, over 75% of all ERP projects fail. Here are a few signs that your ERP project might be failing.

Project management is sleeping

We all know that sleeping is good for the body, but when your project management team is sleeping on the implementation of your ERP project, it’s a big warning sign. Successful ERP projects are led by managers who actively participate in both software selection and implementation efforts. For the implementation of a successful ERP system, management should be able to identify and respond to risks, manage communications, and define the readiness of the organization.

According to ResearchGate, the role of a project manager in ERP implementation is to “Work efficiently in the following areas: deciding on project scope, managing risks, discovering gaps, the right staff, preventing brain drain, project scheduling, interface with other systems, monitoring progress, and managing chaos.” Therefore, your project manager is a driving force behind the success or failure of your ERP project. An inactive project manager is not an option.

Users lack in experience

In any business or company, you need the right talent to carry out certain roles and functions; and for your ERP project, you need people who know how to perform the functions of your ERP system. Moreover, your team members should not only understand their own department’s processes but also how other departments operate.

According to Pemeco Consulting,  “It’s vital to develop and execute a customized ERP training plan that gives your core team the skills they need to succeed…the training should provide your core team members the foundation they need to reengineer your business processes. In the long-run, these are the people who will become subject matter experts that others in your organization will turn to for guidance.”

Clearly, without the proper knowledge or training, how can users feel confident when performing their jobs? Or how can they be effective?

Testing phase is not implemented

All software should be tested; however, this isn’t always the case with companies implementing ERP software. Many companies end up skipping the testing phase when they are pressed to meet schedule deadlines or cost objectives. But, we all know too well that failures in your software implementation can result in unusable software later. According to Bistasolutions.com, “The purpose of testing in an ERP project is not to see if the software works. The purpose is to see if the system meets your business needs and produces the output you need.” Ultimately, how your system works with your company’s practices and processes will be a determining factor for long term success.

 

If you are still unsure about which ERP system is right for your organization, contact the experts at Commercient today.  We can walk you through the entire process and make it as easy as possible.