Why ERP Projects Fail in UAE?
Midhun Menon P
Enterprise resource planning (ERP) is a sort of software that businesses use to handle day-to-day operations like accounting, procurement, project management, risk management, compliance, and supply operations. The major benefit of ERP is that it provides complete visibility into the core business processes. ERP systems optimize through superior resource tracking and reporting, database management and data sharing, and result in an overall improved information system.
One in every four ERP implementations fails due to poor planning and refusing to change existing business practices. Furthermore, such failures have an impact on the chief level management’s willingness to approve such projects. These are the issues that most businesses face and are the prime reasons why ERP implementations fail.
Reason for failing ERP project in the UAE
Unavailability of skilled personnel
Most businesses underestimate the resources necessary for ERP deployment. Most organizations should have a thorough awareness of the project’s internal and external resources. For internal resources, the organization should have a solid timeline on the commitment required from their top resources that will be using ERP, usually those in Finance, Accounting, or Human resource department. For external resources, the organization should find out the consultants and contractors, and the duration, skills, and infrastructure required for the successful implementation of the system.
Reluctant to Change
Sometimes ERP systems will be used for a long time in a company. A lot of things can go wrong while implementing ERP in an organization. Most employees will have had one or two instances of ERP implementation in their careers. While implementing ERP in your company, both internal and external managers should have prior experience with the process. Another issue we usually see is the reluctance of certain employees to change from the existing processes. They will be so familiar with the current system that it will be difficult for them to accept a new system suddenly.
Able Project Owner
The success or failure of the implementation of an ERP project entirely depends on the project owner or Manager from your side. Project managers have more responsibilities. The project managers should have the ability to get into the details of implementation while keeping their perspective on overall business goals. Most successful ERP implementations are led by project managers that actively participate in the selection and implementation both.
Strategy without proper vision
A successful implementation should be done in a systematic manner. The implementation strategy should be in line, it should work with the overall goal and targets of the company. Sometimes lack of a clear strategy leads to challenges in implementation. In a business process, a good strategy is very important, and more importantly, should be crystal clear in the approach so much so that most of the issues and challenges faced by the company and its employees must be addressed through the strategy.
Your business can expand through ERP software in UAE
Enterprise Resource Planning software enables businesses to streamline and automate their processes, resulting in leaner, more accurate, and more efficient business operations.
Enterprise Business Consultants in UAE
Our certified ERP consultants can aid you in finalizing the vendor and the software that best fits your current business processes and align with your future goals as well. We help your build a strong and long-lasting relationship with your vendor partner for years to come. We will help train your employees and make them aware of the advantages and ease of work while using the new system. Apart from going through a lot of processes which include cross-checking the vendor’s presence and expertise in handling your industry’s problems and needs, their technology direction & support system, and the overall cost of ownership. Based on all these factors, we can guide you through the vendor evaluation and ERP product selection process.
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