ERP stands for Enterprise Resource Planning. It is business procedural management software which allows an association to apply a structure of integrated applications to administer the business and computerize many back office functions related to technology, services, and human resources. ERP solutions are very well recognized systems in many business organizations to face global challenges. If applied properly in business operations, ERP solutions can offer competitive advantages and empower consistency among the various pillars and departments of any organization. However, applying ERP can bring numerous challenges in face of an organization. These challenges usually end up having complexity and failure in implementation. Let’s have a look at some of the challenges that ERP Project has to face during its implementation in the project management of any organization.
Non Professional Attitude of Senior Management
The first and most commonly faced challenge while implementing ERP is the lack of seriousness and non professional attitude of the senior management. An organization is run on the basis of collaborative environment, where the senior management plays active role to lead the race. If the senior management is incompetent or have least interest, it will cause in ineffective decisions, operational setback, and disturbance at work place.
Lack of Effective Communication with Users
It is very important for any organization to maintain a hierarchy structure through which all the users can communicate effectively with each other. When the employees have a fail communication network, it results into unmanageable workload and non promising workplace environment. As far as ERP solutions are concerned, users must communicate effectively to bring in positive changes in organizational projects.
Lack of Proper Training
There are many organizations that spend a lot of money on different aspects, but never sign a budget for proper user training. Lack of effective training always end up having turmoil in ERP projects. When users are not trained according to the system, it will eventually cause employee resentment. If proper trainings are provided to the employees, they will understand the system and will definitely perform up to the mark.
Some organizations do not consider it important to gather skillful and right people for the right job. When it comes to ERP implementation, organizations must bring the right people from the very beginning of the project. It is mainly because of the lack of proper planning and consultation. When organizations do not make effective plans regarding ERP implementations, such as including the appropriate stakeholders and making powerful decisions, it will result in disrupted organizational policies.
Selecting the Right Employees
Those organizations that plan to execute an ERP system successfully must be enthusiastic to offer some of their most reliable users to the project of an effective implementation. It is beneficial for the organization to select their most capable employees for the particular projects where they best suit. They must be aware of the right business applications and must possess the accurate skills to implement them carefully. If this choice is made correctly, ERP projects would not be a failure.
It is often noted that those employees who are assigned an ERP project are often put under the stress of lengthy working hours, with no off days, and extra workload. It may be good to some extent to achieve the greater rate of ERP success, but the lethargic working hours can eliminate the best output an employee can offer. It can decrease the potential an employee’s possesses and will result the total opposite. Senior organizational management and leadership must provide flexible working hours to achieve better results.
ERP projects are welcoming and can boost a company’s business, but it is only possible if the ERP implementation challenges are tackled appropriately.