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Top 5 Reasons ERP Projects Fail

Is your business in the market for a new ERP system? Do you have a plan to guarantee a successful project? Unfortunately, many ERP implementations ultimately fail to deliver the benefits the business hoped for. Why does this happen and how can you be sure to get the best ROI from your new solution?

Here are five of the most common reasons why ERP projects fail:

1. Lack of quantifiable goals

There’s nothing wrong with having lots of ideas for what you want from your ERP. Where businesses go wrong is when they fail to turn these ideas into actionable goals.

Long before you actually implement any new software, particularly at the scale of ERP, you should take as much time as needed to plan, create a strategy, and fully define your goals. By the time you’re done implementing, you should be able to check the boxes to know for sure you’ve achieved what your business needs.

2. Data migration challenges

Many businesses fail to fully anticipate the time and effort required to migrate their data into the new ERP system. It’s not just a matter of moving data over – you need to make sure it’s clean, quality data before you enter it into the new system. Redundancies, errors, and inconsistencies need to be found and fixed during the migration process.  

Make sure you work with a technology partner who’s committed to helping your business evaluate your data and get it migrated efficiently and effectively.

3. Too much focus on processes rather than results

It is critical to map out and document your current processes – but many businesses make a mistake when they focus on maintaining those processes rather than figuring out why they have those processes, what the desired results are, and if there are more effective ways to accomplish tasks.

When businesses get hung up on “we’ve always done it this way” it’s easy to lose sight of what new technology can truly offer them. That’s why it’s important to keep an open mind and to get a third-party, objective perspective from your partner. Your partner has likely worked with other companies in your industry and can offer valuable insight into solutions that might work for you as well.

4. Fear of change and low user adoption

Countless ERP projects fail because of low user adoption and a reluctance to change within the business’s culture. It’s not enough to simply install a new ERP system; you need your users to be on board and enthusiastic about the new system. Make sure they understand how this can help them and the organization in the long run, even if it requires extra work initially.

5. Lack of ongoing training and support

Business needs and technology solutions both change over time, which means your users need long-term support and a plan for ongoing trainings. Whether it’s due to new employees or new functionality within your ERP, be sure you work closely with a partner to ensure you are getting the most out of your technology beyond implementation.

Looking for new solutions to help your business grow?

Arbela understands the big picture of your ERP project. That’s why we offer so much more than just software implementations. Whether you’re looking for help with integration, change management, user training, support services, or just long-term strategic planning, we’re here to help. Contact us today to chat with an expert about your business vision.