5 common challenges faced in ERP implementation

What are the challenges of implementing an ERP system?

ERP has become an integral part of the business which increased the challenges of doing business in UAE. ERP software implementation includes databases covering sales, purchase, accounting, manufacturing, etc. The solution changes depend on your services. So people feel overwhelmed due to the highly challenging nature of choosing an ERP solution for their business.

It is important to determine which factors and functions are the most important. ERP implementation challenges include many things related to data, time, quality, and costs. Even with so many execution plans, the implementation of ERP in UAE can also go wrong. The majority of businesses are facing the challenges of ERP. So an impact can affect the future of a business. Therefore, you should be careful from start to avoid risks.

Here are some of the challenges faced by organizations in ERP implementation:

• Selection of the ERP

Mainly you should make a shortlist of potential vendors and your business needs. Then, let them know the requirements. Some of them might be mutually exclusive. A vendor providing a one-size-fits-all solution is not the true one for you. Because an ERP implementation in manufacturing industry is different than VAT compliant ERP Software in Dubai. The right vendor should have industry-specific knowledge.

• Choosing the right team

The people who directly involved in the execution of the project are a significant part. The problems mostly arise because the existing IT staff have separate tasks. A fruitful implementation needs a group trained in the procedure. Select an implementation team with a team leader to contact the vendor and plan the direction of the project.

• Budgeting

For budget planning, study the initial cost and total cost of ownership. Consider the factors and time for customization, training, and updates, etc. An ERP system may appear inexpensive to start with, but the factor like maintenance costs are involved in it. If not planned the budget before implementation, you can finish off with a huge amount.

• Testing

ERP software attaches numerous platforms and sections. One fault can cause a breakdown in your business. Start with single transaction tests and shift to process tests with several functions.  Testing produces a string of wonders and finally great knowledge of how your business will function tomorrow.

• Data quality

This problem applies to businesses that are moving their legacy data into the new ERP system for the first time. But the data produced through the legacy systems might not be well-suited with the latest system. The old data that stored for years can seem incorrect in the new ERP. So, data quality can be checked.

ERP has increased recognition as of competitive factors like a constantly growing number of mergers and competitors. Companies that have implemented ERP systems have viewed the reduced operating charges, decreased administrative costs, better on-time delivery, and profit. Depending on a company’s sector, the challenges may vary. These challenges must be handled carefully. So, it can considerably improve a company’s workflows, decision-making, and revenues.