Imagine, for a second, that your ERP is an office building. The first floor will be home to all your order data, the second floor will hold all your employee data, and so on: as high as the eye can see.
Before you can start decorating offices, or even building walls, your building needs a strong foundation.
The foundation of an ERP project has three parts: people, processes and technology. All three of these parts need to be working in harmony for your project to succeed. If you neglect any of these parts, your building is at risk.
But one of these parts is more crucial than the other two. One of these parts—people, processes or technology—is the concrete of your ERP project’s foundation. If you don’t use enough of it, or use the right type of it, your entire building will fall down.
So, what’s the #1 cause of ERP implementation problems? It’s people, plain and simple.
The staff at Novacura have decades of combined experience in ERP implementation. And in our experience, the most common causes of ERP implementation failure are:
- project management
- change management
- goal setting
- skill and experience of the implementation team
In order to be successful, your ERP project needs to have people, processes and technology all working together to achieve a common vision. But if you skimp on the human factors of ERP implementation, you're setting your project up for failure.
John Jeston is the author of Business Process Management: Practical Guidelines to Successful Implementations. In that book, he writes “the implementation and its success are owned by the people in the trenches.”
In other words: technology doesn’t work unless people use it. Processes don’t work unless people follow them. And people won't try to change unless they understand why they're being asked to change.
Transformation is impossible unless hundreds or thousands of people are willing to help, often to the point of making short-term sacrifices. Employees will not make sacrifices, even if they are unhappy with the status quo, unless they believe that useful change is possible. Without credible communication, and a lot of it, the hearts and minds of the troops are never captured.
What can you do to make sure getting the most out of the human factors of ERP implementation? Start by downloading a copy of our free guide, Why ERP Implementations Fail. This guide provides valuable information on managing the human factors of ERP implementation, with chapters on things like:
- change management
- inter-departmental communication
- creating an all-star implementation team
- dealing with conflict
- ...and a whole lot more.
If your company is planning an ERP implementation, this guide can potentially save you hundreds of hours and thousands (or maybe even millions) of dollars! And did we mention it's free?
Get your copy of Why ERP Implementations Fail here!