Five Signs that Your ERP Implementation is in Trouble

Implementations are almost always stressful. Disagreements about modifications, budgets and scope are common. It is sometimes difficult to know what is normal and what is an indication that your implementation is headed in the wrong direction. Whether you are in the beginning stages of your implementation, or close to go-live, here are five signs to watch for that might signal your ERP implementation is headed for trouble.

You Are Over Budget — By a Large Amount

Being slightly over budget towards the end of an implementation is not unusual, but being over budget by a large amount might be a sign that your implementation is headed in the wrong direction.

ERP vendors sometimes underestimate implementation costs to make a sale. Other times, ERP vendors are unfamiliar with the functionality you need, the modifications necessary for the software to work, your industry, or your business processes. Instead of providing a reasonable estimate, they simply guess. An implementation that is grossly over budget may be a sign of bigger problems with the implementation itself.

Inadequate Project Management

ERP vendor resource constraints can lead to inadequate project management. Due to a number of reasons, including cost overruns, and other more important projects, ERP vendors sometimes assign part time project managers to an implementation or project managers that work remotely an a number of different implementations.

Lack of effective project management can have severe effects on your ERP implementation, including:

· Missed deadlines resulting in a delayed go-live;

· Longer implementation periods that cost you in both time and money;

· Duplicative work product;

· Missing functionality;

· Deliverables that do not work as represented; and

· Inadequate project status updates.

Inadequate User Training

Training is crucial to your ERP’s overall success. ERP vendors sometimes fail to use customer data in training sessions. They sometimes use training environments that are not tailored to the customer’s industry. These failures can result in employees that are not trained properly on the system. Without adequate training, employees are unlikely to fully utilize the software, costing your business revenue and time.

Inadequate Consulting Resources

ERP vendors sometimes assign consultants with little experience in implementing the software or with little experience in the customer’s industry. It is not uncommon for ERP vendors to use a customer implementation project as a training ground for new or inexperienced consultants. The lack of experience and on the job training can increase implementation timelines, result in duplicative work product or non-conforming deliverables, all of which increase the likelihood of a failed implementation.

Proper Software Integration Failure

Integration must happen for your non-ERP systems to interact with your new ERP software. Budget constraints and lack of experience can lead to inadequate system integration. ERP vendors sometimes fail to conduct proper integration testing to conceal defects, meet budgetary requirements or meet deadlines. An ERP system that does not interface with existing systems can have serious implications on your business.

If you are in the middle of a failed ERP implementation and want to discuss your options, feel free to call our office at (312) 263–0570.