Enterprise Resource Planning is one of the widely used application software across the companies. Implementation of the software plays a vital role in the success or unsuccessful of the software in the organization. There are various reasons why ERP is not successfully implemented.
Before implementation of any new software in the company, the management have to look about some points, such as the importance of the implementation, selection of the correct software according to the requirements, frame out the objectives and procedures to be implement in the new applications, total project cost, and also selecting appropriate service provider while outsourcing the software.
Mostly the implementation of these software are fails due to lack of proper planning, and lack of adequate knowledge about the new technology and new products which give faster performance helps in the company growth. Most common reason for the failure of implementation in the company is selection of inappropriate software which will not suit for the requirements of the organization, due to lack of basic idea of the requirements of the organization, companies go for the branded or which was well used by others or suggested by others irrespective of their requirements and business functions. Lack of appropriate knowledge in the advanced versions or lack of idea about new customization methods, companies choosing some branded software, but it may not fulfill the requirements of the organization perfectly.
Second mistake made by the companies is choosing of the service provider, they have to choose the service provider who design the applications according to the requirements o f the company. Some service providers are force the customer to take the software which was already made with some standard applications which will not fit for all business needs. So, those companies have to define their requirements as per the objectives and goals.
Lack of coordination between the customer and client is also one of the biggest reasons for the failure of ERP implementation. It is one of the major reasons why ERP is not successfully implemented. Implementation is a very crucial part and it requires good communication between both the parties. It depends on the information sharing by the customer with the service provider regarding, what they are actually want to get from the software and what are the goals they want to reach, what are the difficulties they want to overcome by implementing this new technology, without changing the objectives of the organization. ERP implementation is a long process and it needs clear understanding between the customer and client. Lack of good communication between both the parties, it is difficult to get success from the implementation of such a software like ERP.
Successful ERP implementation needs basic resources in the company to practice the new methods, the top management have to provide necessary resources like systems, man power and timely financial support. If the top management of the organization is not able to provide the main resources, that also cause to the failure of the ERP implementation.
These are some of the main reasons to leads the implementation process failure. So, the management has to take necessary steps to prevent at the time of implementation.