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Why does your company become “unacceptable” when importing ERP?

Posted by: ANDY Minghe 2021-10-12 Comments Off on Why does your company become “unacceptable” when importing ERP?

Speaking of ERP (Enterprise Resource Planning), it has been “popular” in China for many years, and it has become a “compulsory course” in the process of enterprise informatization. But when it comes to “going ERP”, many domestic companies are “loving but afraid”. What I love is that ERP represents an advanced tool that can provide impetus for the development of enterprises; at the same time, enterprises have to face the dilemma of high failure rate of domestic ERP.

A survey shows that among domestic enterprise ERP users, the implementation success rate is less than 50%. Someone once proposed the “three-part theory” of ERP, that is, “one-third can be used, one-third failed, and one-third can be used after modification.” “Many companies have fallen into the ‘episode’ of funds for this reason and are unable to develop.” Experts said.

Similarly, it is not easy to achieve satisfactory results in the implementation of ERP. There are many reasons for the failure of the ERP system implementation of the enterprise, or the unsatisfactory effect in practice, including the enterprise itself, the personnel, and the ERP vendor and poor project management.

1. The enterprise’s own reasons

There are many reasons for the failure of Chinese enterprises to apply ERP, but the most important one is the enterprise’s own reasons. The main reasons are the lack of strategic planning for informatization construction, lack of understanding of the nature of ERP, and high expectations of ERP, believing that ERP is a “panacea”. However, there is a lack of preliminary preparations when implementing ERP, corporate rules and regulations are not sound, and business processes are chaotic. At the same time, the implementation of ERP often gives people an anticlimactic feeling. At the beginning, there will be an ERP mobilization meeting. The “top leader” said that it will take the lead in supporting it, but in the end it is often only a matter for the IT department. ERP implementation will inevitably encounter resistance from traditional forces , Leading to the premature failure of ERP.

In this regard, we can learn from the successful implementation of Fangtian ERP+MES system by Universal Industrial Machinery (Dongguan) Co., Ltd. and Dongguan Mingli Steel Mould Products Co., Ltd. It took 1 and a half years from the ERP project launch meeting to the ERP project acceptance meeting. During the time, Chairman Fan Rongzhen participated in the whole process and took the initiative to care about the progress of project implementation every week. Any obstacles encountered during the implementation of ERP will be resolved immediately.

In addition, enterprises do not pay attention to the management of basic data by enterprises. Failure to conduct strict software selection is also the main reason for the failure of ERP implementation.

2. Reasons for the low quality of enterprise personnel

In the ERP application process, whether it is a corporate leader or an ERP system management and maintenance personnel, their quality directly affects the success or failure of ERP implementation. Enterprises lack compound talents who understand both business and ERP technology; the computer level of corporate employees is not high; corporate leaders are unwilling to be restricted by the ERP operating system.

3. Reasons for ERP vendors

With the continuous expansion of my country’s ERP market, more and more domestic and foreign ERP vendors and consulting companies have entered the domestic ERP market eager to get a share of the There are also good and bad ERP systems and services. In terms of partial coverage, the industry adaptability is mostly poor. At the same time, the software applicability is poor, the system operability is poor, the logic errors are too many, the process cannot be controlled rationally, each module is divided, and the overall function cannot be reflected at all. Since the development of ERP, solutions for various industries must be subdivided.

4. Reasons for poor project management

Failure to follow the basic requirements of project management during the ERP implementation process resulted in project delays, cost overruns, personnel departures, and project plans that were not implemented, and even led to a complete failure of the project. The project implementation team’s roles and responsibilities are unclear, and the implementation work is difficult to carry out smoothly. At the same time, the lack of the ability of implementation personnel and the lack of project funds are also the reasons for the failure of ERP implementation.

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