The Downside of ERP Implementations

ERP vendors do not talk too much about the downside of ERP implementations, but they do exist.  Some issues that companies might experience include:

• The implementation effort will be bigger and more work than anyone imagined. These projects never come in ahead of schedule or under budget.
• The functionality possible with systems can temp users into wanting all the bells and whistles causing the scope to grow out of control.
• The swing from manual to automation for the many tasks covered by the ERP will improve efficiency, but decrease flexibility.
• Users will need to become more computer literate. Many see this as personally challenging - even beyond their ability - and will not cope, and possibly even leave the company.
• Computers are literal, and this means that data integrity is imperative. Don't ever forget: Garbage in leads to garbage out.
• The "E" in ERP stands for enterprise.  Never forget that what one person does can have a ripple effect across the entire company.
• ERP systems tend to replace old systems, and as such they are a quantum leap for all areas of the company. It is like replacing the trusty old Ford with a high performance Ferrari. This happens at a technical level as well as a business level. New ways of doing things and of thinking need to be learned in a very short space of time.
• Things have to be done consistently. No longer are we going to be 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 consistency can be implemented, there is good potential for cost savings as well as getting rid of special arrangements that reduce profit.

ERP systems have both upside potential for good outcomes and downside potential for bad outcomes.  Aim for the former and prepare to avoid the latter, and your organization will have a winning experience.

Adapted from: http://bit.ly/cW2osy