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Top 5 Warning Signs of An ERP System Failure

Many businesses rely on Enterprise Resource Planning (ERP) systems to keep their operations running smoothly and efficiently, but the integrated nature of ERP software makes it tricky to maintain. It’s not unusual for ERP systems to fail, in fact, some ERP implementations can unravel very quickly and cause total chaos. That’s why it’s important for you to keep an eye on any system failure warning signs.

Confusion About the ERP Project Requirements

Being clear about the project expectations is crucial if you want the implementation to succeed. Since ERP projects require a lot of thought, especially when it comes to upgrades, enhancements and transitions, the fundamental phase of an ERP implementation is one you definitely want to get right. The first step would be creating a clear endpoint for success, this can refer to outlining the important business processes, financial benefits, and deadlines you aim to meet. Having a detailed plan is absolutely necessary for a successful ERP project.

Uneducated Staff

We write about the importance of ERP user training all the time, and cannot stress the idea about a continuous training plan enough. Today’s ERP systems are being used by more than just end users. Continually training all of your employees/staff members on how to use and maintain the ERP system is very important if you want to avoid ERP failure. This means scheduling regular training sessions if the system has endured any changes or updates. You want to be sure everyone in the company feels comfortable using the ERP system on their own and to the best of their ability.

Dependence on Legacy Systems

Unfortunately, some ERP implementations are focused on maintaining old, legacy systems. Paying additional fees for extended support is a warning sign that your systems are stuck in the past. Continuing to use legacy ERP systems expose you and your company or organization to increased cybersecurity risks. Do not allow this. When starting an ERP project, be sure that you focus on the future and one that will keep up with your ever-changing business needs and strategies.

No Customization

Since every business is different, they require different features, functionalities, and support that off-the-shelf solutions don’t offer. This puts customization as a ‘make it or break it’ situation for your ERP. Today, most companies are aware that customizing their ERP system adds time, risk, and cost to the project. Despite this, it can be hard to control the project if you chose not to customize. Adopting the business processes already included in the ERP software can cause issues with your business needs and can even increase organizational change management challenges. To avoid this, customizing your ERP system is your best bet to avoid ERP system failure down the line.

Lack of Integration Ability

If you’re ERP system can’t integrate with your existing business applications or mission-critical business data, you may be in trouble. Locked up data within your ERP is 1. difficult to access and 2. hurting your business. Since you can’t rely on that data to be in real-time or up-to-date, it makes it hard for informed decision making and quality management. Lack of integration capabilities encourage silos of information that exist independently from each other. This only increases complexity and ensures data duplication and redundancy – which creates different versions of the truth that can compromise quality and accessibility of vital information. Make sure your ERP can be easily integrated!

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