Overcoming the challenges that appear during an ERP software implementation project requires identifying and highlighting where these roadblocks are most likely to appear, and developing a plan to solve each as you can. This blog will walk you through 13 common scenarios that can appear during Enterprise Resource Planning application deployment, and some of the solutions SWK Technologies recommends from over 30 years of firsthand experience with thousands of successful go-lives:
The 13 Most Common ERP Software Implementation Challenges
ERP implementations are always complex processes, even with SaaS (Software as a Service) and other cloud deployment models increasingly you to consolidate the amount of physical legwork required. At least part of this complexity is inherent to the purpose of these systems as “centerpiece” applications in many tech stacks, storing mountains of critical data. The other major culprit, however, is typically the potential for human error, whether from true negligence, gaps in knowledge or visibility, or simple burnout from the time and effort required for the process.
Many of the examples illustrate why some form of expert guidance and procedural validation is necessary to ensure a successful implementation, from in-house developers, a consultant partner, or often both. Being able to rely on this additional direction and advice will give your team a better opportunity to shore up points of failure that could set your project back.
With that in mind, here are 13 of the top common challenges to watch for when implementing ERP software:
1. Change Management
Change is often a difficult process; the whole point of adopting new technology should be to help this dilemma, but there is no enterprise-level system that will magically make your end users switch from what they already know overnight. A change management plan must be included with your pre-implementation dialogue, starting with creating an open line of communication with the rest of your business that will enable you to map out the best ways to maximize adoption rates.
2. Goal Misalignment
There will be plenty of ideas for your ERP should achieved during the conceptualization stage, with the challenge being consolidating these between the “must haves” and “nice to haves,” and ensuring that your entire business is aligned on what the end game looks like. Internal misalignment on primary implementation goals – as well as externally with your consultants – will be a roadblock to success. Involve all stakeholders in your project from the start, accumulate feedback and identify gaps promptly, and finalize your business objectives before proceeding.
3. Misunderstanding the Technology
There is a lot that can be lost in translation when describing what an enterprise-level software application actually does, even when full transparency is a given. These misunderstandings could lead to underestimating the level and scope of functionality needed, or investing in many more systems than you need or would even be able to use. No ERP implementation should begin without fully qualifying and validating what it does and why your business needs it.
4. Not Devoting an Implementation Team
The whole field of IT is evolving for the simple fact that the silos around technology systems have broken down and it has become increasingly clear that no one person could handle all of the complex maintenance and support requirements alone. Software implementation is no exception, and you must have a dedicated, cross-functional team in place to oversee the process from start to finish.
5. Lack of Pre-Implementation Planning
If you have read any more than one other point on this list, then you have likely already gathered just how important pre-implementation planning is when installing an ERP system. Besides the many other items outlined in this blog, this can also include failing to define project scope, timelines, resource allocation, and any other important aspects you need to figure out deployment deliverables. Make sure you have a clear, documented strategy in place that includes assessing potential risks and how they will be mitigated, as well as accounting for stakeholder engagement and handling feedback.
6. Scope Changes
Scope “creep” is one of the most common and impactful challenges SWK Technologies comes across in failed software implementation projects, where other unexpected hurdles or changes to your market or business derail the original intent of your ERP deployment. To help prevent this, you must establish a clear change management process, prioritize requirements, and communicate the impact of potential changes to all stakeholders. Be prepared to make tough decisions about what features are absolutely essential for your business at go-live, and those which are not.
7. Data Migration Challenges
The process of migrating data during an ERP implementation is a challenge too often overlooked and not properly prepared for in either scope or scale, leaving many businesses with time and money lost to having to pick up the slack. The latter typically has its own cascade effect on the rest of the project, driving up the costs and the number of hours spent reconciling and repopulating whole files and individual fields. Start your data migration efforts early as possible, prioritize steps accordingly, map out paths and document in detail, and verify everything.
8. Inadequate Budget
Failing to properly budget for a full software implementation project, or not keeping track of cost overruns from scope creep or other changing factors, will leave you with even more headaches beyond even the financial ones. To maintain visibility into your ROI and ultimately ensure your ERP deployment is successful, you should be accounting for all aspects going into the process beforehand from hardware expenses to training and post-live support.
9. Broken Integrations or Customizations
There often will be unique requirements that a solution does not immediately offer out-of-the-box, meaning you may need integrate your ERP system with other business applications or build customizations to meet these specific needs. Poorly executed integrations or overly complex customizations can lead to system instability and performance issues. Carefully evaluate the necessity of each integration and customization, and thoroughly test all connectors, added code or new workflows before go-live.
10. Communication Silos
Communication is absolutely, positively, and unequivocally a vital component of ERP implementations, without which you will quickly run into additional and escalating series of challenges. Establish clear channels of dialogue, hold regular meetings, and ensure all stakeholders are kept informed throughout the project from the beginning to go-live and post-live. Encourage open lines of conversation between all parties and create a feedback loop to address concerns promptly.
11. No Response Plan
Even with careful pre-implementation planning, unexpected issues can arise at all most any point of your software implementation and failing to have a response in place can lead to prolonged downtime and significant disruptions. Develop contingency plans for various scenarios, including data loss, system outages, or integration failures, that will address these eventualities and make sure that your team is prepared to navigate around them to continue the process.
12. Lack of Training
Inadequate training is a surprisingly common point of failure in ERP installation projects, with too many businesses unable to comprehensively plan for the amount of education and instruction their end users will need to get the most out of the new system. This is where having a consulting partner can be invaluable, being able to leverage their firsthand knowledge and experience to help develop a comprehensive training program that covers all user roles and system functionalities. Additionally, they can also provide continued refreshers and ongoing support to your team after your software has already been deployed.
13. No Post-Implementation Support
Your project will not end at go-live, and post-implementation support is a vital yet too often overlooked part of ensuring your ERP is integrated with your businesses processes and tech stack successfully. Working with a certified and experienced value-added reseller (VAR) for your selected ERP will give you access to their knowledge, resources and continuing support services for items like training and system updates. Taking advantage of this will help you keep your solution performing at optimal capacity and avoid anything falling through the cracks that was missed during planning.
Fix Your ERP Implementation Challenges with SWK Technologies
SWK Technologies has helped thousands of businesses from small to large successfully deploy and maintain their enterprise-level software. The ERP consultants at SWK are experts in their field of service, with firsthand knowledge of solution architecture, industry-specific regulations, implementation methodologies and more that will ensure you get the most out of your technology investment.
Here are just a few ways SWK will help optimization your pre-implementation planning, perform a recovery project for a failed software implementation or provide post-implementation support:
Pre-Implementation Checklist
Before diving into an ERP implementation, the software consultants at SWK Technologies follows a rigorous pre-implementation checklist to ensure every aspect of your project is documented, mapped out and aligned with your business goals:
- Define Project Scope: Clearly outline the project’s goals, timelines, and resources required
- Assemble a Dedicated Team: Identify key stakeholders and help assign roles for both internal teams and external advisors
- Data Preparation: Conduct a comprehensive audit of existing data, focusing on cleaning and organizing data for migration
- Risk Assessment: Identify potential risks and help develop mitigation strategies
- Communication Plan: Help establish clear communication practices and expectations to ensure continuous and open dialogue
4-Step ERP Project Recovery
If your previous implementation has failed for any number of reasons, SWK has a proven 4-Step Methodology to get your project back on-track and ensure a successful ERP deployment:
- Analysis: Review the initial project and related documents, meet with key stakeholders to identify obstacles
- Evaluation: Conduct an independent evaluation and audit of the project’s current status
- Alignment: Determine processes, align expectations, and prepare internal teams for full engagement
- Execution: Deliver a new Project Plan with a phased approach agreed upon by all stakeholders
Post-Implementation Optimization
SWK’s commitment does not cease once your ERP is live, and will continue to provide ongoing support and recommend optimizations to help you guarantee your ERP system continues to deliver value as your business evolves:
- Continuous Monitoring: Regularly review system performance and user adoption to identify areas for improvement.
- User Training and Support: Offer ongoing training sessions to ensure all users are fully comfortable and efficient with the system.
- System Enhancements: Recommend and implement system upgrades or customizations to align with changing business needs.
- ROI Analysis: Periodically assess the return on investment to ensure the ERP system is delivering expected benefits.
Contact SWK for Software Implementation Consulting
When you choose SWK Technologies for your software implementation, you work closely with a collaborative consulting partner that will actively listen to your requirements, put together the right-sized team, and help you meet your immediate and evolving needs. Get in touch with the SWK team today and get started on your ERP implementation project right away.
Contact SWK here to learn more about our expert implementation services and see for yourself how we can help you achieve a smooth and successful ERP deployment.