The introduction of ERP changed the way big companies conduct their businesses. Many of them are investing a lot of money in a system to tailor fit their company’s needs. However, not all ERP’s are success. While many succeeded in implementing their ERP, some companies did not succeed that resulted to massive loses instead of the expected return of investment.
The goal of each company is to maximize the use of their ERP at the same time to increase productivity, efficiency and most importantly profit. In order to do this, instead of doing damage control when the problem arises, it is then more sensible to identify the causes why ERP’s fail before it happens. It’s like nipping it in the bud so to speak.
One problem that may be encountered is failure to implement the ERP software application. Most ERP’s are heavily customized in order to meet a company’s needs. If these customizations do not match with the IT infrastructure of the company, then problems will occur.
Another problem that may be encountered is the lack of flexibility of the system. As businesses expand or evolve, they also make changes in their systems. Some ERP’s are not flexible enough for the evolution that needed to take place in the business.
Failure of user acceptance can also become a problem. ERP’s are made in order to increase the productivity and efficiency of the employees. Some employees may prefer the system that they are used to. It is therefore important to give them proper training before the full implementation of the new system
Lastly, as long the users follow the set of guidelines and procedures the chosen ERP will succeed.