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Business Management Review | Wednesday, January 19, 2022
ERP implementation can be complex and sometimes challenging, largely because it affects people and business processes across the entire organization.
Fremont, CA: An enterprise resources planning (ERP) system can improve business productivity and efficiency by automating processes and providing a centralized data source for all teams at your company. But an ERP implementation can be complex and sometimes challenging, largely because it affects people and business processes across the entire organization.
An ERP implementation involves people as well as technology. Accordingly, it may face people-related challenges, such as resistance to change and technical obstacles. Common ERP implementation challenges include:
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• Project management
ERP implementations entail multiple phases: discovery and planning, design, development, data migration, testing, deployment, support, and post-launch updates. Each phase brings critical tasks, and all elements need to stay on track, which requires meticulous project management.
• Project planning
Organizations often underestimate the time and budget necessary for a successful implementation. One of the most common causes of budget overruns is scope creep—when a business adds capabilities or features to the system that weren’t part of the original plan—, and another is underestimating staffing needs, according to Statista. In addition, the information may get kept in various forms; there may be discrepancies, such as differences in address or name spellings; some information may be erroneous; and it may include old information, such as customers or suppliers who have subsequently gone out of business.
• Data quality
Once the business has identified all data sources, it may consider moving them to the ERP system. However, this may necessitate a thorough data hygiene process. For example, organizations frequently have duplicate versions of the same information in their systems because numerous departments deal with the same customers, goods, and orders. As a result, the information may get kept in various forms; there may be discrepancies, such as differences in address or name spellings; some information may be erroneous; and it may include old information, such as customers or suppliers who have subsequently gone out of business.
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