Top 5 ways to fix a failed ERP Implementation for your Organization

January 13, 2023

Failure during the ERP implementation process is the absolute worst-case scenario, and a project team working on the implementation will do anything in their power to prevent it. On the other hand, the implementation team still has a chance of saving the project, and the leader of the project should take certain steps in the future to try to save it.

ERP software for engineering companies is used to manage and integrate the various functions and processes of an engineering business. These systems have evolved significantly over the years, and they are expected to continue to evolve in the future. Some trends that are likely to shape the future of ERP include:

• Increased focus on the cloud: Many companies are moving their ERP systems to the cloud to take advantage of benefits such as scalability, flexibility, and reduced IT costs.

• Greater integration with other systems: ERP systems are expected to become more integrated with other systems, such as customer relationship management (CRM) and supply chain management (SCM), to provide a more complete view of the business.
• Increased use of artificial intelligence (AI) and machine learning: ERP systems are expected to make greater use of AI and machine learning to automate processes and provide more accurate and timely insights.
• Greater emphasis on user experience: User experience is becoming increasingly important, and ERP vendors are focusing on designing systems that are easy to use and navigate.
• Greater focus on sustainability: Companies are becoming more concerned with sustainability, and ERP systems are expected to help companies track and reduce their environmental impact.

How does an ERP solution fail?

There are several reasons why an ERP implementation might fail. Some common causes of ERP failure include:

●    Lack of executive support:

ERP implementations require the commitment and support of top executives in order to be successful. If executives do not provide adequate support, the implementation is likely to fail.

●    Insufficient planning:

ERP implementations require careful planning and coordination. If these steps are not taken, the implementation is likely to fail.

●    Lack of user involvement:

ERP systems are designed to support the needs of the entire organization. If users are not adequately involved in the planning and implementation process, the system is likely to fail.

●    The complexity of the system:

ERP systems can be complex, and if they are not properly configured and customized to meet the needs of the organization, they are likely to fail.

●    Inadequate training:

Users must be properly trained in using the ERP system. If training is inadequate, users are likely to struggle with the system and the implementation is likely to fail.

●    Inability to integrate with existing systems:

If the ERP system cannot integrate with the organization's existing systems and processes, it is likely to fail.

●    Insufficient resources:

Implementing an ERP system requires significant time and financial resources. If these resources are not available, the implementation is likely to fail.

How to fix a failed ERP Implementation?

If you are in a situation where your ERP implementation has failed, you can try the steps listed below by an excellent provider of ERP software for engineering companies - STERP (prior Shanti Technology).

1.   Identify the root cause:

The first step in fixing a failed ERP implementation is to identify the root cause of the problem. This may require a thorough review of the planning and implementation process. There are many potential root causes of an ERP system failure. Some common causes include:

• Lack of proper planning and implementation: If an ERP system is not properly planned and implemented, it is more likely to fail.
• Insufficient training: If users are not properly trained on how to use the ERP system, it can lead to errors and system failure.
• Customization issues: If the ERP system has been heavily customized, it can become more complex and prone to failure.
• Integration issues: If the ERP system is not properly integrated with other systems and processes, it can cause problems and lead to failure.
• Data quality issues: If the data entered into the ERP system is of poor quality, it can lead to errors and system failure.
• Hardware and software issues: If the hardware or software used to support the ERP system is faulty or not up to date, it can cause a system failure.
• Lack of ongoing support and maintenance: If the ERP system is not properly maintained and supported, it is more likely to fail.

2.   Communicate with stakeholders:

Communicating effectively with stakeholders is an important part of fixing a failed ERP implementation. Here are some steps you can take to communicate with stakeholders about the failed implementation and your plan to fix it:

• Identify key stakeholders: Make a list of all the stakeholders who are impacted by the failed ERP implementation, including employees, customers, vendors, and shareholders.
• Communicate the problem: Clearly and concisely explain the problem with the failed ERP implementation and the impact it has had on the organization.
• Outline the plan to fix the problem: Share your plan for addressing the issues with the failed implementation and getting the ERP system up and running properly.
• Involve stakeholders in the process: Invite stakeholders to provide input and feedback on the plan to fix the failed implementation.
• Keep stakeholders informed: Keep stakeholders informed of progress on the plan to fix the failed implementation, including any setbacks or delays.
• Apologize and take responsibility: If the failure was due to mistakes made by the organization, apologize and take responsibility for the problem.
• Offer compensation: If the failure has caused problems for stakeholders, consider offering compensation to make up for the inconvenience.

3.   Adjust the project plan:

STERP (Shanti Technology) - the most distinguished Engineering ERP software company in Rajkot suggests adjusting the project plan to fix a failed ERP implementation, you will need to identify the issues that led to the failure and develop a plan to address them. Here are some steps you can take to adjust the project plan:

• Assess the situation: Determine the root cause of the failure and the impact it has had on the organization.
• Identify the changes needed: Determine what changes need to be made to the ERP system and the project plan to address the issues that led to the failure.
• Revise the project plan: Update the project plan to reflect the changes needed to fix the failed implementation. This may include revising the timeline, budget, and resources required.
• Communicate the revised plan: Share the revised project plan with stakeholders, including employees, customers, vendors, and shareholders.
• Implement the revised plan: Put the revised project plan into action, working closely with all relevant parties to ensure that the changes are implemented correctly.
• Monitor progress: Regularly monitor progress to ensure that the revised plan is being followed and that the changes are being implemented successfully.

4.   Seek expert help:

If you are unable to fix the problem on your own, consider seeking expert help from an ERP consulting firm or vendor. Seeking expert help can be an effective way to fix a failed ERP implementation. Here are some steps you can take to seek expert help:

• Identify the areas of expertise needed: Determine what specific expertise is needed to address the issues with the failed ERP implementation. This may include expertise in project management, data analysis, software development, or business process improvement.
• Research potential experts: Look for experts with the necessary skills and experience to help fix the failed implementation. This may include consulting firms, software vendors, or individuals with relevant expertise.
• Request proposals: Contact potential experts and request proposals outlining their approach to fixing the failed ERP implementation and the cost of their services.
• Review proposals and select an expert: Review the proposals carefully and select the expert or experts who seem best suited to address the issues with the failed implementation.
• Engage the expert: Work closely with the expert to diagnose the issues with the failed implementation and develop a plan to fix it.

5.   Learn from the experience:

A failed ERP implementation can be a learning experience. Take the time to review what went wrong and consider how you can avoid similar issues in the future. Choosing the right implementation partner is an important step in fixing a failed ERP implementation. Here are some tips listed by one of the trusted providers of ERP software for engineering companies - STERP (Shanti Technology) for choosing the right implementation partner:

• Look for experience: Choose an implementation partner with a proven track record of successfully implementing ERP systems.
• Consider the size of the partner: Choose a partner that is the right size for your organization. If you are a large enterprise, you may want to choose a larger implementation partner with the resources to handle a complex project. If you are a small or medium-sized business, a smaller implementation partner may be a better fit.
• Look for industry expertise: Choose a partner with experience in your industry. They will understand the specific challenges and requirements of your business and be better able to tailor the ERP system to meet your needs.
• Evaluate the partner's approach: Choose a partner with a clear and comprehensive approach to implementing ERP systems. They should be able to provide a detailed plan for the implementation process and explain how they will address any potential challenges.
• Consider the partner's culture: Choose a partner whose culture aligns with your organization's values and goals. A good fit will help ensure a smooth and successful implementation process.

Final Thoughts:

Fixing a failed ERP implementation can be a complex and challenging process. It is important to carefully assess the issues that led to the failure, develop a plan to address them, and work with experienced professionals to implement the plan. By following best practices for communication, project planning, seeking the expert help, and choosing the right implementation partner, you can effectively fix a failed ERP implementation and get the system up and running properly. If you are looking for a trustworthy as well as excellent Engineering ERP software company in Pune that can fulfil all of your ERP requirements, STERP (Shanti Technology) is the right place for you.