6 Common Challenges of ERP Implementation

Understanding the key issues and risks of ERP implementation.

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Implementing a new ERP system doesn’t have to be complicated, especially if you know what to avoid in the process.  

ERP implementation can be one of the most intensive processes undertaken by a business. Careful planning and effective management are therefore essential when trying to remain on-time and on-budget.

Installing an ERP system will affect your entire business, so it’s only natural that a number of challenges arise. However, these difficulties shouldn’t stop you from enjoying the benefits and positive outcomes of a new ERP system.

In this guide, we have listed 6 common challenges of ERP implementation to help you select, test, and deploy the right ERP solution for your organisation. Let’s dive in! 

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1. Working out which processes need to be integrated

The first challenge of ERP implementation is trying to work out which of your already existing processes and systems would benefit from an ERP integration and which of these would end up impeding the workflow of your business. This is especially difficult for organisations with different competing divisions.

Without an ERP system, companies waste valuable time pulling together fragmented data from different spreadsheets and sources. By integrating your current systems and work processes with an ERP solution, you can ensure that there will always be one source of all data within your organisation.

2. Inadequate flexibility

If an ERP system isn’t adequately flexible, your company may have to adapt its processes to suit the ERP for it to work. This may seem a little backwards, and the time and resources it would take to reorganise your business and retrain your understandably reluctant team would not seem worth it.

However, by choosing the right software for your specific requirements, you will ensure that your integration is seamless and thereby eliminate the lack of flexibility, as well as other challenges of ERP implementation. 

3. Resistance to change

Despite the clear benefits of ERP solutions, people just really don’t like change, and replacing such an integral system will inevitably lead to resistance and delays from your team. This is worse if your team don’t fully understand the importance of implementing the new ERP system.

Always take your time to properly train your staff before implementing your new software. Focus on why the new ERP will make their daily tasks easier, rather than more complicated. 

4. Not properly vetting vendors

It happens all the time; an IT buyer is swayed by a silver-tongued marketing team, but it’s only once the system is implemented that you realise how restricted the functionality is and how it will affect your existing best practices.

Never implement a new software without properly vetting the vendors. We recommend meeting at least 5 different providers before making a final decision. If you think this sounds too complicated or time-consuming, you can get in touch with one of our ERP experts here at YourShortlist and we’ll do all the hard work for you – completely free of charge and with no obligation to purchase. 

5. Maintenance costs

All ERP systems need regular maintenance, which comes with associated maintenance costs. An ERP system might seem cheap to start with, but if you don’t factor in the maintenance costs attached to it before implementation, you can end up with overwhelmingly large sums to pay. You should also keep in mind whether the software will be supported in the longer term and ensure that your chosen vendor or software partner is able to provide adequate support for several years to come in order to make implementation worthwhile.

Read: Understanding Microsoft Dynamics NAV End-of-life Support

6. Not understanding or using key features

Though businesses can invest millions into their ERP system, users frequently aren’t aware of what they are using or the features that are available to them. This means that businesses frequently miss chances to automate their business processes, speed up functionality, leverage industry-specific features, and meet more targets.

Your ERP Needs. YourShortlist.

As a key decision-maker, you’ll have to do your research before choosing the most suitable ERP provider for your business. Rather than struggling alone with the challenges of ERP implementation, why not speak to someone who can find the ideal software partner to help you meet your implementation targets.

At YourShortlist, our goal is to make technology procurement simple, transparent, and cost-effective by matching businesses with the right software providers.

We’re all about helping our members understand, choose, and implement the solutions that will pay dividends and facilitate successful growth. We manage a wide database of over 680 software partners providing solutions in ERP, CRM, cyber security, cloud migration, finance, IT, HR, and more.

Our non-chargeable service includes:

  • Independent buying advice on the best ERP system for your business
  • A bespoke shortlist of specially selected partners experienced in implementing ERP solutions for your industry
  • Partner background information
  • Free call-backs from partners with no obligation to purchase

Speak to a member of our team today to discuss your requirements and begin the journey toward a free, no-obligation shortlist tailored to your business; YourShortlist

Download Your Free ERP Comparison Guide 2022