Enterprise resource planning software has greatly impacted business as we know it. If you’re a business looking for a solution that integrates all crucial parts of your operation, you should start thinking about implementing ERP software as soon as possible. 

However, one challenge with ERP solutions is the implementation process. It doesn’t necessarily fall under the umbrella of “plug-and-play” solutions. Still, even with all its challenges, ERP implementation is manageable, and the benefits that come from successfully integrating ERP systems into your business will make the challenge more than worth it. 

Still, it helps to know what challenges you’re up against and how you can manage them. So, here are the top ERP implementation challenges and some highly recommended solutions to help you. 

ERP Implementation Challenges & Solutions

1) Change Management

Change management is the transition organizations must go through when they implement new systems, processes, or technologies like an ERP system. So much of this challenge goes back to th the difficulty of altering existing workflows and the inherent resistance to change within an organization.

If you’ve ever driven a truck, you know that maneuvering it won’t be as easy as driving a small sedan. Likewise, as organizations get bigger and operations become more complicated, change will be harder. 

Solutions

• Develop a Clear Communication Strategy — Regularly communicate the benefits and progress of the ERP implementation to all stakeholders. Transparency helps mitigate fears and builds trust and facilitate smoother change.

• Establish Change Leaders — Your team should include and train change leaders within your organization. These people can act as champions for the ERP implementation process, and this will most likely be an ad hoc role. Part of what they should do includes providing peer support, addressing concerns, and motivating others through the transition.

2) Data Integration

When setting up an ERP system, you need to find a seamless way to merge data from various sources into a new system. Only then can the system run consistently and accurately. During implementation, challenges might arise due to differing data formats, legacy systems, and incomplete data.

Solutions

• Conduct a Thorough Data Audit — Before integration, perform a comprehensive audit of all current data systems to identify and rectify inconsistencies, duplicates, and gaps in data.

• Use Middleware Tools — Try to look for middleware solutions that can help bridge different systems and formats. They can help you implement a smoother data integration and fewer disruptions.

3) Difficulty Finding Experienced ERP Talent

Finding skilled ERP professionals can be tough due to the high demand for experienced individuals well-versed in these complex systems. The many that are available are most likely already engaged in several projects, so you won’t get anyone to work with you exclusively.

Solutions

• Partner with Universities and Training Institutions—You might want to consider establishing partnerships with educational institutions to develop a pipeline of skilled graduates trained in ERP systems

• Invest in Training and Certification Programs — Offer existing staff opportunities to gain ERP certifications and training. Anyone can learn how to run and maintain ERP solutions, even people with the cheapest online engineering degree. Building internal expertise will help reduce dependency on external talent.

4) Cost Overruns

Cost overruns in ERP projects often occur due to unforeseen complexities, scope creep, and underestimation of the necessary resources for successful implementation. During quotation management, you’ll probably find that the project will cost you more than you initially thought. That doesn’t mean you should allow expenses to spiral out of control.

Solutions

• Implement Strict Budget Monitoring — Regularly review and adjust the project budget based on actual expenses and forecasted needs to prevent overruns.

• Scope Management — Clearly define project scope and adhere strictly to it. Use formal procedures to manage any changes or additions to the project scope.

5) Insufficient Training

Insufficient training can leave users underprepared to use the new ERP system effectively. When left to figure out systems on their own, your internal team might commit more errors and reduce productivity.

Solutions

• Comprehensive Training Programs—Develop detailed training programs that cover all features of the new ERP system relevant to each department's needs. This doesn’t have to be all-encompassing. Handpick the training that each staff member needs and provide only that to streamline the training process. Consider making tiers in the company based on the level of configurations they’ll need to handle in the ERP software.

• Ongoing Support and Learning — That might include refresher courses, help desks, and online resources.

6) Employee Resistance

Some on your team might think, “Why fix a system that isn’t broken?” Employee resistance often stems from fear of the unknown and discomfort with changes to established routines and job roles.

Solutions

• Engage Employees Early in the Process — Involve employees in the ERP selection and customization processes to give them a sense of ownership and control.

• Clearly Vision Cast the Benefits — Clearly and compellingly share how the ERP system will make their jobs easier and contribute to overall job satisfaction and security.

7) Overly Optimistic Scheduling

Overly optimistic scheduling might happen when you assume that the ERP implementation will proceed without significant issues. This will result in rushed deployments and improper testing.

Solutions

• Realistic Timeline Planning — Use historical data and realistic assumptions to plan the project timeline. Include buffers for unexpected delays and challenges.

• Incremental Implementation — Consider implementing the ERP system in phases to allow for adjustments and refinements. This approach also helps manage the workload and transition more smoothly.

To Every Problem, There’s a Solution

The ERP market will only grow with time, showing that more companies are adopting them for their various advantages. It’s already predicted that the ERP market will grow to $49.5 billion by 2025. 

So, yes, there will be challenges when you implement an ERP system in your business. But the cost far outweighs the potential. You’ll need to keep in mind that every problem will have a solution. All you need to have a bias towards action and execution and a dedicated team that wants change as much as you do.