An ERP is a worthwhile investment for many organizations. However, ERP systems come with their own sets of implementation challenges, including selections, technical issues, compatibility, etc.

5 Biggest ERP Implementation Challenges

ERP implementation challenges can vary, depending on different factors. However, major ERP issues are uniform across different businesses and regions. Here are some of the most common challenges that all businesses face with ERP Implementation.

1. Selecting an ERP

There is no one-size-fits-all solution when it comes to selecting ERPs. Organizations have to research the scale, size, and type of system that they require. Choosing the best one from hundreds of choices is hard. Price and functionality are the top concerns when looking through the market.
Some companies automatically choose an ERP based on what’s most popular. That’s not a smart approach. They may get something overpriced that they won’t fully use or something underpriced, which is rarely useful. Some ERPs may have everything they need, but cost a fortune. Others may have the basic features, but have extras as add-ons, which can be purchased. Ultimately, an organization has to make this call based on their budget and needs. Without proper research, they can end up disappointed.

2. Technical Issues

Technical issues that may arise after you’ve selected your ERP can include compatibility and setup. This basically entails getting all the hardware you own and the software you have selected to harmonize. Unless you’re going for a cloud-based ERP, you’ll have to set up servers and other hardware. New equipment may need to be ordered and installed. This will require quite a bit of financial resources.
You will also have to analyze the internal network you have. It may have to be modernized and the speed and bandwidth may very well have to be trebled or quadruped.
Some companies may underestimate these needs and will suffer later. Deadlines will be affected and the results of the project undertaken severely impacted. However, a shift in how ERPs are handed out to companies in the last few years has mitigated some of these problems.
Cloud-based ERPs are now the norm and the infrastructure is now hosted at the providers’ end. The applications, updating, network issues, etc., are all handled by the providers.

3. Business Philosophy

Significant changes can result from implementing new ERP systems. Conventional business models can be overhauled or reevaluated, as a result. This can be hard for companies that have been doing things the same way for many years or even decades. However, now with cloud based ERPs like ERP Business Notes, this trend is shifting.

4. Data Quality Problems

This issue is relevant to companies that are transferring their legacy data to a new ERP. Old data has been in use and has been stored for years. It can appear approximate or even incorrect in the new ERP. One of the biggest reveals in ERP research is that poor data integration is an extremely common occurrence. It adds up to 20% of the problems that experts cite with ERP implementation challenges.

5. Mindshift

What is easy to forget is that beyond the practical issues with its implementation, lies its success with its users. Unless a company’s staff is able to adapt to that software, ERP implementation remains an issue. The system may be working perfectly, but the users may find that there is a steep learning curve involved. Stark differences between what had worked before and what is working now can leave a lot to be desired.
Switching between two different applications can sometimes be incredibly hard. Imagine how much of an issue it can be to use different ERP systems.
While these issues do persist, there are ways to get around them. A company must acknowledge when an issue arises so that it can be fixed properly.
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