ERP Implementation Problems:
Hershey's Food Services, the US-based leading branded sweet ingredient supplier, spent nearly two and a half years and $112 million on its ERP project. When the project went live in July 1999, the company encountered delivery problems. According to analysts, the most important problem in ERP implementation is the failure of organizations to understand what ERP is all about and what exactly is required for implementing the project effectively. The companies fail to take into account the costs associated with implementing the project as the vendors do not reveal them initially. This results in increased costs for these companies. Analysts say that organizations fail to plan the project implementation details and this leads to confusion and delays in implementation. Further, even if minor problems appear in one area of the ERP system, they affect the operations in other areas of the company
The time taken for implementing the project may sometimes be too long and companies may skip some necessary procedures while implementing ERP.
Hence, proper planning is required for implementing the project accurately. Surprisingly, going by the history of ERP implementations, not many companies have implemented the project on time. Further, many organizations ambitiously plan for quick implementation of the ERP system, and this could result in problems.
Organizations need to bring about changes in their long-standing culture before implementing ERP. Moreover, the employees have to change their focus from their own jobs to the organization as a whole, as their negligence could have an effect on the entire organization. However, this is very difficult to achieve. The other problem that is encountered by most companies is training their employees to work on the new systems. This is a challenging task and many employees refuse to comply; some may even leave the organization. Once the project has been implemented, all departments or branches are interconnected and the employees in all the departments need to be consistent in their working. In case an employee fails to enter the movement of goods into the system accordingly, it would result in problems for the employees at the next level in the hierarchy and so on. Sometimes, employees expect too many benefits from the new method either because the management has failed to interact the benefits properly or because they themselves have misunderstood the system. Therefore, after the implementation, if their expectations are not met, they can end up feeling dissatisfied. It is therefore important for the management to interact the exact benefits to its employees.
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