A Comprehensive Analysis of Common Problems and Countermeasures in ERP Implementation

Common Problems in ERP Implementation

Pre implementation stage

Many enterprises do not attach enough importance to system requirement analysis and business process streamlining. On the one hand, inaccurate grasp of system requirements leads to incomplete module installation and difficulty in smoothly connecting business processes, such as production modules experiencing confusion in the post launch process due to misunderstanding of requirements; On the other hand, the lack of in-depth understanding of the processes and data of various business departments resulted in the implementation of a system that could not fit the actual business situation, such as the failure to connect sales and inventory processes, and distorted inventory data. ​

Human Resources

Managers and employees lack operational skills in ERP software, which affects the use of system functions such as difficulty in entering order information and obstruction in generating financial statements; If the system is designed to be complex, the operation difficulty is high, the probability of employees making mistakes is high, and it is easy to generate resistance. ​

At the technical level

Hardware device selection errors, inability to adapt to ERP software operation, resulting in resource waste, such as low server configuration and frequent lag during operation; The poor network environment, insufficient bandwidth, slow system response, and delayed data transmission severely restrict business operation efficiency. ​

management link

The communication channels between departments within the enterprise are diverse and inconsistent, and the information transmission is not smooth after the implementation of ERP. For example, it is difficult to timely and accurately convey order information from the sales department to the production department; Unreasonable business process planning in the early stage resulted in process bottlenecks after implementation, hindering the improvement of enterprise operational efficiency. ​

In terms of cost

Inadequate budget planning in the early stages of implementation, insufficient consideration of software procurement, implementation services, and post maintenance costs, resulting in uncontrolled post maintenance costs and affecting the normal operation of the enterprise; ERP system maintenance is difficult and costly, which brings significant financial pressure to enterprises.

Communication mechanism in ERP implementation

Communication purpose

Information transmission: Timely report key information such as project progress and system function adjustments to project personnel to ensure that all parties are familiar with the project situation. ​

Discussion on optimization: Organize discussions among all parties on the implementation methods and system function improvements of business processes in the ERP system, gather wisdom, and optimize solutions. ​

Consensus through negotiation: To reach a consensus among all parties regarding differences in system customization costs, implementation cycles, and other related matters. ​

Communication methods

One way notification: Publish system launch arrangements, system updates, and other information in the form of notifications, without the need for immediate feedback, efficiently conveying important matters. ​

Two way communication: During performance evaluation communication and plan discussion, both parties communicate equally, fully express their views, and promote the exchange of opinions and consensus. ​

Multi party collaboration: For example, in an ERP project, Party A, Party B, and the supervising party discuss the acceptance criteria, and representatives of different interest groups negotiate together to reach a compromise and agreement. ​

Communication channels

Covering phone calls, emails, meetings, reports, reports, verbal communication, notifications, flyers, billboards, text messages, messages, etc. Urgent issues can be quickly communicated over the phone; Detailed explanation of important plans through email; Complex issues rely on meetings for centralized discussion. ​

Communication principle

Objective and impartial: Avoid preconceptions, comprehensively and objectively understand the situation, and not easily draw conclusions about the communication object or problem. ​

Emotional management: Adjust your own emotions before communication to avoid emotional fluctuations affecting communication effectiveness and create a rational communication atmosphere. ​

Double confirmation: Repeat and confirm the other party's viewpoint to ensure accurate understanding; For complex viewpoints expressed by oneself, require feedback and confirmation from the other party to ensure effective communication of information. At the same time, maintain a positive attitude during communication, aim for a win-win situation, be fully prepared, choose the appropriate time, place, and partner, confirm the communication results, and if necessary, form written records and track feedback.

Strategies for Dealing with Common Problems in ERP Implementation

Regarding the pre implementation phase

Enterprises should attach great importance to it, use professional research methods, organize cross departmental teams to conduct in-depth analysis of system requirements, comprehensively streamline business processes, clarify the requirements and data of each link, formulate detailed and reasonable implementation plans, and ensure the integrity of system modules and smooth processes.

Regarding human resources

Develop personalized training programs that combine theory with practice to enhance employee proficiency in operation; When designing the system, fully consider the user experience, simplify processes, develop operation guides and online courses, establish internal coaching positions, and help employees quickly get started. ​

Regarding technical issues

Based on the requirements of ERP software technology and the actual usage scenarios of the enterprise, select suitable hardware devices, optimize the network environment, assess network bandwidth requirements in advance, and upgrade; Introduce a professional technical team to ensure scientific and reasonable technical solutions, and select reliable suppliers. ​

Regarding management issues

Build a unified and efficient information communication platform, standardize the information transmission process, and break down departmental barriers; The implementation team collaborates with various departments of the enterprise to optimize and design business processes based on enterprise strategy and actual business, eliminate process bottlenecks, and promote communication and collaboration through instant messaging tools and project management software. ​

Regarding cost issues

Develop a comprehensive and detailed budget in the early stages of implementation, covering various expenses and reserving flexible space; Strictly monitor cost expenditures during implementation, establish cost accounting and analysis mechanisms, negotiate reasonable maintenance service prices and content with software suppliers, and reduce maintenance costs by optimizing system configuration and enhancing internal technical capabilities. ​​