ERP has changed the way organisations handle their businesses. Successful implementation of ERP systems saves millions of dollars for companies and increase employee satisfactions, customer satisfactions and sustain competitive advantages in the market. Stories of how reputable corporations have failed miserably in implementing ERP and lost millions of dollars in their ERP endures has created a hesitation among companies who are planning to go for an ERP System. There are plenty of ERP Software in UAE, which is available in different price range, and you should use your intuition and good business judgment when comparing provider costs. Look for system that cater your requirement and has the ability to support in achieving your company’s primary strategic goals.
Failures of ERP projects can be avoided if we can identify the causes of the failure regardless the companies and industries that implement them. ERP Systems – ERP is much more than a piece of computer software. An ERP System includes ERP Software, Business Processes, Users and Hardware that run the ERP software. An ERP system is more than its parts or components. Those components communicate together to achieve a common goal – streamline and improve organizations’ business processes.
1) Failure of Accommodating Evolution of Business Processes/Fitment
Business processes consist of three levels – strategic planning, management control and operational control. Organizations continuously change their business processes of all levels based on the changing market environment. Many ERP systems in the market aren’t flexible enough to accommodate the changing business process. They fail to fit the needs and results in failure of the ERP Implementation.
2) User Acceptance failure
Users of ERP systems are the employees of the organizations who use the system. ERP software usually changes the whole business process, which create extra workload for employees who use them initially. They may think that the workflow in the current software are better than the one that they are newly implementing. Some users prefer their existing system because they are using it for years and got familiar with it, those users may not be interested to learn the new software.
3) Lack of Commitment/Support from Business Leadership
Most of the time, in the absence of the right blessing from the leadership derails the ERP Project. Without Leadership blessing, no one else in the organisation will be committed either.
4) Lack timely Decisions
It is critical to define who is going to take what level of decision-making. Poor quality decision is one of main reasons for ERP project failure.
5) Lack of investment in change management
The traditional members from business will not be looking forward to ERP and they are not keen to look at the business case. The only intelligent method is to over converse and over concoct
6) Lack of Funding and resources
ERP implementations are expensive, and you should always be conscientious about not wasting money. However, the cost of an ERP failure makes the implementation cost seems like pocket change.
Lack of resources (Business and IT) on the project is most of the time a big challenge for any ERP project
7) Data Cleansing
Data cleansing and preparation requires patience and persistence. The catch here is that the correct format and choices for data cannot occur without understanding how the system works, but the system will not work without correctly formatted data. The system build and data cleansing must occur in tandem.
8) Lack of enough Training/Support
An ERP implementation requires trained users. Any users not trained in advance will be siphoning off resources from the implementation support team. As the available support, resources diminish, the ability to resolve go-live problems decreases, and the implementation implodes.
9) Making ERP look like legacy/User Acceptance
Over-customization increases every other cost and risk, it makes upgrading and testing more difficult, and it reduces ERP functionality
10) Lack of Testing
Without serious and repeated testing, building from a single test of every business critical process and progressing though volume tests and a mock go-live requiring practice at synching up the old systems to the new, the shock and surprise of problem volume at ERP go-live will collapse the implementation effort.
Most ERP projects involve significant amount of customizations. Generic ERP software modules have built-in functionality that work in a standard and simplified enterprise environment. However, data requirements and business processes will be different for different organization. Customizing an ERP Software will make a Generic ERP to meet organizations, individual business processes and operations. Long and expensive customization often results in not meeting deadline and budget overrun. Due to this reason, Management will be forced to stop implementing the ERP. And if the ERP software provider does not have a local team for implementation it will be hard to maintain the system in the long run. The integration of ERP systems with the IT infrastructures also challenges ERP project teams. The use of proper implementation methodologies can often make or break an ERP project. When an ERP software fails to deliver the expected value, it is said to be failed. Implementing an ERP system is an expensive process not just in term of licensing cost but in terms of time resources. And most of the times organizations are overwhelmed by vendors promises. Organizations must analyses and evaluate on their requirements to find out what required and what not in an ERP.
Deciding to go for a low cost ERP software provider UAE or ERP Solution may leave you in trouble with hidden costs and delay or eliminate any ROI for your business. Brainsphere IT solution has become one of the best ERP Company in UAE for helping to implement the right ERP solution for different industries. Brainsphere IT solutions is a Software Development Company in UAE, ERP Solutions and Services Company headquartered in Dubai, United Arab Emirates. Providing ERP software, HR and payroll software Dubai, Warehouse management software Dubai and other software’s over the past 17 years, the company having strong market credibility with its customers, employees and partners. With its unique focus to provide comprehensive and integrated software business solutions to facilitate businesses, Brainsphere IT offer the best software solutions for our customers mainly in the UAE, UK, India and other Middle East region.