1.Education (Not understanding what the new 'system' is designed to
achieve)
2. Lack of Top Management Commitment (Management being involved but not
dedicated)
3. Inadequate Requirements Definition (current processes are not adequately
addressed)
4. Poor ERP Package Selection (the package does not address the basic
business functions of the client)
5. Inadequate Resources employed by the Client
6. Internal Resistance to changing the 'old' processes
7. A Poor fit between the software and users procedures
8. Unrealistic Expectations of the Benefits and the ROI
9. Inadequate training (users do not properly how to use the new tool)
10. Unrealistic Time Frame Expectations
11. A Bottom up approach is employed (the Process is not viewed as a Top
Management priority)
12. The client does not properly address and plan for the expenses involved.
Several issues that need to be considered when implementing an ERP System are:
Implementation effort will be bigger then ever talked about or even imagined. We are yet to hear from an organisation who have implemented ahead of schedule and under budget.
Because of the richness of functionality, the "toy box effect" can take over. Users see all the functionality available and suddenly they want it now. The scope can grow out of control.
The existing environmental mix between what is done manually and what is done by the system will swing dramatically after implementation. Many more tasks will be automated. Automation will significantly reduce the flexibility of how you operate as a business.
Users need to become more computer literate. Many see this as personally challenging - even beyond their ability - and will not cope, or leave the company.
The word "Enterprise" in ERP means that whatever happens in one area has a ripple effect in other areas. Understanding the implications of actions of one area, on other areas of the company, is not something that happens overnight. Training tends to focus on how do I do my job. It should also focus on what are the impacts of my job, in other areas.
Near enough is no longer good enough. Data integrity becomes critical. The computer cannot make human judgments. If stock is moved, it is no good somebody remembering where they put it. The information needs to be put into the system or there will be a domino effect. E.g. Stock is moved from location A to location B and the information is not put into the system. The system will tell someone to get the material from A and when it is not there, they have to go looking. At the same time it is telling someone else to put new material in B, but B is full. The first person finds the original material in B and logs it into the system. We now have double the quantity in the system again and it doesn't reorder. And so it goes on and everyone is blaming the system.
ERP systems tend to replace old systems. As such it is a quantum leap for all areas of the company. It is replacing the trusty Ford with a high performance Ferrari. This happens at a Technical level as well as a Business Level. New ways need to be learnt in a very short space of time.
Things have to be done consistently. No longer are we able to do something one way in one branch and another way in another branch. The system is going to determine how we do things in all locations. Even within one location, special treatment may not be possible any more without changing the configuration of the system. If the system says you can either have 0, 15, 30 or 60 day credit terms, you can no longer offer 45 day terms without changing configuration. If consistency can be implemented, there is good potential for cost savings as well as getting rid of special arrangements that reduce profit.
