Top 5 Reasons for ERP Implementation Failure in Indian Businesses
If implemented correctly, an ERP system would improve the organization of a business and improve its efficacy. However, many Indian corporations are undergoing hardships during ERP deployment. Knowing such challenges can become helpful in averting wastage of resources. Therefore, here are the top 5 reasons why ERP implementation failure is noticed in Indian businesses.
Defining Objectives Which Are Not Achievable:
It is a very basic and very common reason for ERP failure and is the lack of definite targets. This often leads to the implementation of an ERP without realizing what needs have to be catered for. This leads to chaos and unrealistic expectations. It is crucial to set clear targets. It is further stated that a target is necessary in order to derive benefits from the ERP tool.
Poor Change Management:
Nevertheless, there are also several change management risks that stand in between the successful implantation and the outcome of the ERP. Still, many organizations underestimate the significance of change management. New systems include training, which employees dislike because of not being up to speed, or because they are afraid of new things. This would be a major hindrance, and businesses will have to train their workforce in the proper use of the ERP system. Part of change management includes preparing employees where possible for a change in business operation.
Imperfect Vendor Choice:
The steps concerning selecting a vendor are a matter of great significance since correct vendor choice guarantees project success. It has been seen with some Indian businesses that they focus on cost alone when choosing a vendor. This leads to poor-quality software that does not fulfill the desired requirements. While selecting the vendors, attention should be given to the technical specifications of the software as well as the previous performance of the vendor. Such vendors also understand the processes that will ensure effective system implementation in the company.
Inadequate Customization and Integration:
There are some special features inherent in most of the ERP’s that must be altered to meet the needs of the business. In most cases, Indian businesses tend to neglect this feature, and the consequence becomes inefficient procedures. Also, the level of integration with other software and databases is typically very low and often constitutes a headache. Improving effectiveness using enterprise resource systems implementation will not work unless, however, the existing systems are coherent, and integration is diverse.
Underestimating Time and Resources:
In the case of several Indian business organizations, they have had to carry out the implementation of the ERP module in a timely fashion. There are fixed timelines, maybe limited departments and staff therefore limitations and those are the things that can ruin the process. Enterprise resource planning installation takes a lot and thus it calls for simpler restructuring, good coordination of resources and fulfillment of timelines.
These common traps such as lack of clear objectives, subpar vendors, insufficient tailoring of the ERP system should be avoided by the businesses so as to guarantee good ERP integration. If they know how to properly harness their ERP features, there may be no limit as to what the businesses can achieve.
SoftCore Solutions is one of the most successful cloud ERP implementation companies in India. It is based in Mumbai and provides services across the entire subcontinent. We serve customers from different industries and geographical locations. Besides the capabilities of native integration inside the NetSuite Cloud ERP system, there is space for spare modules that can be adjoined for unique business processes. You may book a demo experience Cloud ERP solution with no costs at all.