Top Challenges Organizations Face When Implementing A New ERP

Running head: TOP CHALLENGES ORGANIZATIONS FACE WHEN IMPLEMENTING A

NEW ERP 1

Top Challenges organizations face when implementing a new ERP

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May 17, 2020

TOP CHALLENGES ORGANIZATIONS FACE WHEN IMPLEMENTING A NEW

ERP 2

Top Challenges organizations face when implementing a new ERP

The implementation of ERP solutions is quite interesting since it is a technical job that requires

proper communication and a lot of planning. Enterprise resource planning (ERP) systems come

in all sizes and types, and their implementation is common in a majority of small- and medium-

sized businesses at least once during their lifeline (Subramanian, & Hoffer, 2017). One of the

most difficult issues in ERP implementation is on mind shift. These issues are the most difficult

to resolve since they are highly dependent on the users. Most people using a system are used to

following specific logical steps and processes, therefore, switching to a new way of doing things

it becomes difficult to switch. The ERP project manager has to understand what is good for the

business and that the issues arise from the users' habits thus they must find a way to resolve it. It

is critical to define the problems that arise from the user base. During the implementation of ERP

systems, there is a high possibility of the negative impact of users' contra-collaboration activities.

The implementation of an ERP brings numerous changes for an organization. There are several

ways to ensure that these changes help to gain the interest of the different system users and

ensure they are involved in its implementation for the successful encouragement during the

‘mind shift" process. To ensure that each of the employees is engaged and well informed during

the implementation process, several steps should be taken. First, communication is a critical part

of the project to ensure it progresses well thus a reliable feedback communication channel should

be created (Nordin & Adegoke, 2015). Secondly, training sessions to help with the transition

should be conducted. Finally, achievements should be celebrated to help stimulate the employees

and ensure new ideas and suggestions are generated, and the changes embraced.

The other challenge facing the implementation of a new ERP system is related to the project's

technical part. The workstations and servers within a business have to be revised to

TOP CHALLENGES ORGANIZATIONS FACE WHEN IMPLEMENTING A NEW

ERP 3

accommodate the new system. In addition to this, analysis and modernization of the internal

network have to be done, and the company's internet access must be taken into consideration

since its bandwidth and speed requirements may change. These need to shave a huge impact on

the project's overall results and must, therefore, be taken into context, and the systems working is

planned around it. The availability of organization software and ERP are affected by delivery

models have caused problems since more ‘as a service' is now available. Their minimalism in the

cost, of storage, hardware, applications, and networks ensures that all aspects are stored on-site

or off-site depending on the business' requirements (Subramanian, & Hoffer, 2017). The issue

can be resolved through the use of thorough review of the organization's needs. The exploration

of options will help ensure that all the technical requirements are taken into consideration from

the start, and there are no mishaps along the way.

In conclusion, ERP implementation requires a massive amount of planning, monitoring and

effort t reduce problems and ensure success. Addressing the problems on the mind shift of the

users and employees as well as the technical problems likely to will help ensure a majority of the

issues are treated, and the planning stages are implemented (Nordic & Adegoke, 2015). Doing

this due diligence will be an assurance of the success of the ERP implementation.

References

Nordin, N., & Adegoke, O. (2015). Learning from ERP Implementation: A Case Study of Issues

and Challenges in Technology Management. Jurnal Teknologi, 74(1). doi:10.11113/jt.v74.3369

Subramanian, G. H., & Hoffer, C. S. (2017). Implementation of Enterprise Resource Planning

(ERP) Systems. Modeling and Analysis of Enterprise Information Systems, 1-19.

doi:10.4018/978-1-59904-477-4.ch001

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