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an ERP professional experiences frustrations after an ERP implementation failure
SetuplyFeb 15, 2024 12:00:00 PM4 min read

Top 5 Reasons ERP Software Implementation Fails

Implementing a new enterprise resource planning (ERP) system is often time-consuming and impacts multiple stakeholders across your client’s organization. Unfortunately, the complex nature of ERP implementation creates opportunities for failure – from missed deadlines and delayed launches to over-stretched resources and overspent budgets. Onboarding a new client to your enterprise resource planning system can set the tone for your relationship, with lingering effects long after the ERP is launched.

Here are common reasons ERP implementations get off-track and ways to mitigate these issues to help your clients optimize your system to meet their business needs.


1. Inadvertently Missing Information During Planning

The unique needs of your ERP clients demands a customized approach for a truly white-glove experience. During the planning phase, a unique client experience can cause critical information to slip through the gaps. To bridge the gap between personalized client support with efficient project requirement gathering, adopt a systematic approach that establishes guardrails without compromising customization.

Setuply utilizes questionnaires, templates, and data forms to collect essential client information upfront and in a consistent manner. The information and documentation is then held in a central location accessible to everyone. If personnel changes occur during the ERP implementation project, new stakeholders can easily find all the information to get up to speed. With extended documentation of the scope of work clearly laid out upfront, the rest of the project plan can be tailored to fit the client’s specific needs. 


2. Stakeholder Buy-In Throughout the Implementation Process 

While it’s essential for stakeholders to be engaged in the planning phase, it’s critical that clients stay actively involved throughout the ERP implementation process. Engagement wanes when people feel like they haven’t been heard, don’t understand their role in the process, or don’t realize the impact they have on the implementation. Disengagement shows up as ignored tasks, limited participation, or indifference towards the project – and it quickly takes a project out-of-scope, off-pace, and over-budget. 

Consistent communication can mitigate disengagement, but it’s often a manual process for your team to lead. Through Setuply’s client portal, clients will receive automated messages, notifications and Smart Tasks, there's clear communication that’s actively working to continuously engage stakeholders – keeping them on-task and informed - all while alleviating the manual tasks from your team. 


3. (Mis)Managing Project Change Requests

Despite extensive planning and effective processes leveraged during project scoping, project change requests are inevitable. Without a solid process to manage, evaluate, and communicate decisions, you’re setting the project up for failure. Incorporating every change request creates a constantly evolving project scope and limits forward progress. However, not offering an avenue for requests can drive disengagement, as it restricts input and limits the project's responsiveness to evolving client needs.  

By formalizing how changes are requested, reviewed, and implemented, you can ensure that all stakeholders are aware of the change implications. Setuply implements a formal yet flexible change request process with a workflow that makes any adjustments transparent to all involved. This process manages expectations and maintains project integrity, avoiding delays and additional costs. 


4. Underestimating the Value of a Centralized Data Repository 

Accurate budget forecasting isn’t possible with inaccurate finance data. Sales goals won’t be met with stale sales pipelines. Pulling bad data from one system to another will only recreate old issues in a new tool. This is where data staging plays a key role. 

Setuply offers a built-in centralized data repository to ensure all data is validated and correct before it’s pushed into your ERP. Utilizing enhanced data collection tools like data forms and questionnaires, Setuply pulls data directly into the staging environment -- keeping every aspect of the ERP implementation in one system. 


5. Information Flow Disconnect from Onboarding to Support

You’ve launched your ERP for your client and they’re realizing the benefits of your system. The onboarding project closes and customer support may be moved to a new system.  

But businesses and goals constantly evolve, creating new opportunities to adapt to their changing ERP needs – whether through optimization of features or future training. A system to manage this ongoing support, share project implementation history, and facilitate a seamless transition to the next phase of the client lifecycle is critical to continue growing the client relationship.

Setuply’s Case Management System is available as a standard part of its offering for continued client support and communications – all within the same system they’ve become accustomed to during implementation. 


Lay the Groundwork for Successful ERP Implementation

Proactively addressing potential causes of ERP implementation failure is crucial for cultivating strong client relationships. Choosing the right client onboarding software simplifies the process, offering established systems for a successful ERP implementation. Because a well-implemented ERP not only enhances operational efficiency, it lays the foundation for a long-lasting and collaborative relationship.