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Barriers to ERP Implementation Process

Name: DataNote
Brand: DataNote
Rating: 4.9 (61 reviews)

2022-08-11

ERP

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There are numerous aspects which are hurdles in the ERP implementation process.

Identity Crisis

At times, it so happens that the EDP team do not understand the whole ERP implementation process. Despite being the specialist, they are not aware of the process as a whole, this inadequate knowledge leads to an identity crisis. Till the specialists developed a strong sense of purpose, planning cannot be effective. The planners need to understand the process and the purpose of the process, to make the process a success.

Lack of Support from Employees

The second barrier to ERP implementation is the support of employees. Employees resist the change implementation. They feel that the planning increases their workload and regulates them through productivity bargaining. They have a feeling that it would lead to widespread unemployment, especially among lower middle management employees. So sometimes, the employees are not in support of the ERP implementation process.

Insufficient Initial Efforts

There are other barriers also like insufficient initial efforts. Every process requires a gestation period, an incubation period, after which it starts getting useful. Successful ERP implementation also flourishes slowly and gradually. It takes its own course of time to show the results. Sometimes organizations tend to use sophisticated technologies just because the competitors have adopted them, or just because they are very much in trend in the market. Now, what would this lead to? This would lead to a failure, since these may not be successful because they are not meant for the particular organization’s environment. They're not a proper match with the requirements of the organization, so it has to be ensured that whatever is being introduced in the system is as for the requirement of the system, not just because it is something which is being trended or it is something which is being used by the competitors.

Also, Read Improved Accountability with ERP Implementation

Inappropriate Management Information System

Another aspect that is a barrier to ERP implementation is the inappropriate management information system. We all understand the whole planning process is dependent upon data. It is dependent upon the information that is used to arrive at conclusions. So the effectiveness of the whole implementation process depends upon the reliability of the information system. Considering the Indian scenario, we know that management information systems are yet to be fully developed, so the information that is available might not be accurate and adequate. In the absence of such reliable data, it would not be possible to have effective implementation. ERP implementation can be effective only if the data is efficient and for the data to be efficient, we have to have a fully developed information system.

Mentality of Fast Implementation

Another aspect is that the whole process of ERP implementation is time-consuming, and it is also expensive. There may be resistance to this concept owing to these factors. Many organizations might not even prefer to put money into this process, considering that there is a vast availability of local software in the market, and they would like to dedicate their resources and their money to something which is more productive compared to ERP, which will reap the results after a certain period of time.

Lack of Coordination with Teams

Another barrier is coordination with other managerial functions. To be effective, ERP implementation must be integrated with other management functions. Since it is taking into account the whole system of the organization, it is going to take into account each and every department and function that is taking place in the organization. So there has to be effective coordination between the various managerial functions and the EDP / IT team.

Lack of Support from Top Management

One more barrier to the ERP implementation process, and is the support of the top management. For every plan to be successful, the top management should be aligned with it. When it comes to system implementation, there is a possibility of resistance from the top management. They feel that the implementation involves a lot of time and resources leading to the loss of productivity.