The Human Factor in ERP Failure

Is ERP failure something that your business struggles with?

Integrating a new ERP system into a business is not an easy task. It takes a lot of time, money, and resources. Along with implementing a new ERP system comes the human factor. An ERP system is not just software - it takes a whole team to integrate it into a company and make it work.

While ERP systems help businesses save money, improve processes, and help organizations grow, no matter how good the system is, it doesn’t always guarantee that ERP failure will not occur.

One of the most common factors causing ERP failure is human error - and it can be one of the biggest obstacles to a successful ERP system.

New technologies have many capabilities, but many problems can occur if the people using the technology cannot work together to integrate the system successfully.

Here’s everything you need to know about the human factor in ERP failure.

The Human Factor in ERP Failure

An ERP system is more than just software. How it works and how efficient the system is depends entirely on the people using the system.

Many factors go into how well an ERP system runs, and many of these factors come from within the work environment itself.

Internal Resistance

Although ERP systems can help organizations grow and become more efficient, it isn’t easy to make every employee happy when changes come about in an organization. There will always be some form of internal resistance from employees who are resistant to change.

These staff members may struggle to understand how an ERP system can benefit the business. They may be unaware of how the system works - how it can make business processes more efficient, make jobs easier, and open up new opportunities for new roles.

And while most staff will likely be open to a new system that can help a business grow, it is only natural for humans to resist change. Many employees may fear how such a change will affect their job.

People who have worked at a company for several years may also be resistant to change because they have overcome the challenges and roadblocks of the current system and know how to work around issues. They may fear learning a new system. They may also worry they will now be at the same level as juniors who had not been as proficient in the older system.

The Right Team

When a team cannot work together to implement change, it can decrease efficiency and lower morale. When personalities clash or employees feel unwanted, it creates competition and results in inefficiencies, which, in turn, can lead to resistance to the new system.

Human interaction is crucial for good teamwork, especially when an organization experiences a significant change. A good team works together to learn how to adapt to changes so that the company can achieve ultimate success.

Building Trust

Team members must trust each other, support each other, and learn together. They must put their differences aside and put the organization first.

Choosing the right team to implement a new ERP system is critical. It’s not about choosing the best people for the role but about selecting people who can work together as a team.

Once selecting new software, the ERP system change is a learning process. It is critical for teams implementing the new system to work together and trust one another to make the process a smooth one. By supporting one another throughout the process, they can ensure that business functions run smoothly and successfully.

While it is normal for team members to want to put their departments first, they must be able to work with other employees and think about what works for the business as a whole. They must work together to implement an ERP system that benefits an entire company - not just a single department.

Remember - at the end of the day, an ERP system is much more than software. Employees must work together to implement the system successfully and in a way that benefits the entire company.

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The Human Factor in ERP FailureJune 20, 2022 by Carole D'Arcy

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