Pitfalls of ERP

  1. Training. This is the most vital part of any ERP installation and it can take a great deal of time and expense. The reason for this is that employees have to learn a whole new set of processes and procedures. Unless your employees know how to best use the system, the benefits you anticipate will not be realised.
  2. Entering information. The quality of the information entered by people using the system must be 100% accurate otherwise it will impact every part of the organisation. For example, if a person enters wrong information in the warehouse about stock delivered, part numbers or volumes, it will be a lengthy procedure to try and rectify it let alone finding more errors later on. Information can no longer be kept on scraps of paper or inside people’s heads!
  3. Customisation. Sometimes it will be necessary to customise or change the software to meet the requirements of an organisation. This again, can be costly and time consuming.
  4. Change. People generally don’t like change and this can have a massive impact on a company regardless of size. As a result, some employees may react badly to having to re-learn new processes or change the way that they have been working for years. An ERP system often requires people to change the way they do their jobs.
  5. Consultancy. This tends to impact larger companies with more than 250 employees. Consultancy is often required to ensure the smooth running and installation of an ERP project but this can often over-run and more consultancy days need to be purchased. This can impact the cost of the installation and effect how long it will take.
  6. Length of implementation. Sometimes, installing a new ERP system can be lengthy simply because of the amount of people and departments it may include to set up the processes in the first place and then to customise the modules to meet their needs. The more subsidiaries around the world that need to be connected and integrated, the longer the implementation will take.