Here are 7 reasons ERP projects fail and how to avoid them

Those considering a new ERP system face worrying statistics: surveys recommend that around half of all ERP projects fail, costs are considerably exceeded, schedules aren’t met, and improvements don’t live up to expectations.

In looking at the data, the primary reason is clear: The implementation of ERP software(Odoo Implementation) is new territory for many medium-sized corporations, who lack experience with large and sophisticated IT projects.

Although competence with ERP methods is steadily being constructed up throughout the course of an Odoo implementation project, a few of the most important strategic steps happen at the beginning stages — earlier than corporations have developed the ERP Technology. The consequence: mistakes on the early stages set the whole project off on the wrong track.

The reality is that most ERP projects don’t fail due to a poor selection process or the functionality of the ERP software. They fail due to the Odoo implementation process. The solution? Prepare your company and your crew for the introduction of ERP to mitigate these risks.

Experience reveals that there are seven typical pitfalls that endanger ERP projects. Read on to search out the way to avoid them.

1. ERP Software’s Goals Are Not Clearly Definable

Many corporations see the introduction of ERP software as the magic bullet solution to all their problems, however don’t take sufficient time to outline the specifics of what they’re trying to perform or how they’ll measure what success should look like.

Often, each department expects a unique enchancment, so how can organizations know which requirements have priority? It’s important to have a clear documentation of what precisely you want to achieve with the ERP system and where the priorities lie. When you don’t have a detailed map of where you want to go, guiding you every step of the way, you’re likely to get lost amidst the dangerous distractions of politics, short-term considering, and minor setbacks that turn into project derailments.

Examples:

• Lower error rate
• Reduce throughput times
• Speed ​​up time to market
• Improve service quality
• Improve collaboration between departments
• Automate and standardize workflows
• Provide accurate and up-to-date business analysis
• Support internationalization

2. Insufficient management commitment

Most corporations know that an ERP project requires a substantial amount of commitment and typically overtime work from workers, along with sustaining the day-to-day operations. But what in regards to the management crew? A leader who is disengaged or too busy can kill a project in its tracks . An Odoo ERP implementation isn’t about pushing a button and everything happens automatically: it takes time and cautious attention to get right.

In order to reach the Odoo ERP implementation, the venture crew wants sturdy (and vocal) help from administration. Communicating clearly and often with the corporate in regards to the expectations for the venture, serving to unlock the sources wanted, sustaining a constructive angle and power, exhibiting appreciation, and making themselves accessible for planning classes are key methods the management crew can help overcome this pitfall.

3: Project team lacking expertise

Every Odoo implementation needs to be approached methodically. This starts with assembling the best project team, consisting of a project manager, key users and IT staff. To avoid later knowledge gaps, the important thing users should cover all related enterprise areas, including purchasing, marketing, logistics, sales, manufacturing, controlling and service. The crew must possess the best abilities for the job, and desires a leader who deploys their abilities well in a coordinated fashion via the ERP implementation.

Characteristics of project manager:

• close to the day by day enterprise
• deep insights into all departments
• organizational expertise
• assertiveness
• social competence / teamwork

The project crew is normally supported by a venture supervisor from the software program supplier, who drives the method primarily based on an Odoo implementation methodology, defines milestones along with the crew and gives invaluable enter.

Also vital are agency duties and competencies, for instance by means of function descriptions and floor guidelines for resolving disagreements. Building a fantastic crew takes a transparent framework of objectives and expectations, as well as sturdy, proactive management.

4. Communication problems

Many ERP implementations endure from insufficient communication between management, the project crew, employees, and the software vendor. If worker questions and issues go unanswered, rumors and negativity can take maintain, creating yet one more obstacle for the implementation crew.

Instead, communicate openly from the start. In the weeks main up to the implementation kickoff, put the tools in place to make sure a steady move of data and most project transparency. For instance, set up a regular meeting time every week between the ERP project manager and management crew. Schedule common data classes for the workers. For project updates, use company newsletters or company-wide emails. Make sure documentation, to-dos and present project progress shall be easily accessible to all concerned. It is far, much better to err on the side of over-communication reasonably than under-communication. When your individuals don’t clearly perceive the day-to-day progress of the Odoo ERP implementation, and where it’s going subsequent, you’ve a communication downside to fix.

5. Processes of production are not clearly defined

In order for an ERP system to map the processes in your organization, the present processes have to be clearly and completely documented. Process modeling is advanced, so sufficient time ought to be allocated for this essential preliminary work.

This is the time for optimization! Your software vendor should have the ability to help you consider your processes and find areas for enchantment earlier than they’re mapped in your ERP. Reviewing and reorganizing your workflows pays off:

• Which processes are actually necessary and helpful?
• Which processes could be made more efficient with the help of the new software?
• Which workflows haven’t been updated recently, though processes have modified?

Be open and versatile too, if the new software cannot reproduce a selected process precisely as you’re used to, it might make sense to tweak your process quite incurring the cost of customized programming. Analyzing and discussing all this prematurely is essential.

6. Underestimating the impact of data migration

The transfer of previous data into the new system is an usually missed and underestimated side of a successful Odoo ERP implementation. The data migration isn’t restricted to a simple Excel export and import, but all data must be focused and meticulously ready.

In addition, many individuals wrongfully believe that they’ll be capable of automatically increase the standard of poorly maintained data with an ERP project. The data quality within the new system will only be nearly as good as the quality of the migrated data. As the old saying goes, “garbage in, garbage out.” To avoid this problem, duplicates, spelling errors or card particulars needs to be corrected before migration.

The mapping process begins after the records have been cleaned up. Each area of the previous knowledge report is assigned to a counterpart of the brand new knowledge construction and a verify is made as as to whether the information sorts are right (for instance “date,” “text,” or “currency”). Only when the brand new knowledge construction works in an in depth simulation will it’s transferred to the manufacturing system.

7. ERP projects fail because of fear of change

Companies ought to be ready for the truth that not each employee is enthusiastic about the ERP implementation. After all, jobs and processes are changing, data is becoming more clear, tasks could also be redistributed — this transformation is usually met with fears and resistance. It is therefore necessary to speak to every department the concrete advantages of the ERP project for day by day work and to familiarize workers with the new system via workshops and training. When employees understand why the change is going on and the advantages the change will bring, they’ve a basis for moving from fear of the known to increasing comfort with the change process .

Think of change management as a “change triangle” that includes technology/methods, processes, and folks. You have to concentrate on all three elements of that triangle. As mentioned in #Four above, talk brazenly and often together with your individuals by means of many channels, being certain to deal with questions and issues as they arrive up. It’s much better that objections and resistance to the change get aired, and responded to, early within the course of reasonably than throughout it, where it could do more harm to the project at unexpected moments.

Conclusion: Implementation wants experience!

The complexity and challenges of an Odoo ERP implementation are to not be underestimated, as a result of the method requires the cautious coordination of your methods, processes, and folks. But with good planning and strong course of group, the obstacles could be eliminated and complexities could be clarified.

Support from an completed ERP manager on the part of the software partner contributes significantly to a smooth Odoo ERP implementation, as well as a proven implementation methodology. For medium-sized corporations without in-house experience, the expertise and competence of the ERP provider ought to be a key issue in the choice process. You need an skilled partner who’s seen all of it earlier than, and helped firms efficiently navigate each challenge along the way.