Enterprise resource planning platforms offer myriad benefits. Adopters can streamline critical backend operations, while introducing data-based processes that facilitate scalability and lay the groundwork for long-term success, no matter market conditions.

However, implementation is rife with risk. Developing and deploying one of these systems requires considerable company resources, as well as support from the end users who will eventually log into and use the solution. Many adopters fail to muster the internal strength needed to follow through on ERP projects, wasting money and time on half-imaged and constructed software. An estimated 26 percent of the organizations that started implementing ERP platforms last year ultimately failed, according to research from Panorama Consulting Solutions.

Companies exploring ERP solutions can avoid this fate by getting acquainted with the inherent risks ahead of time and actively working to address them as implementation unfolds. What exactly are the risks that come along with this process? Here are some of the common hazards that hamper businesses on the ERP adoption journey:

Focusing on the technology rather than the business
ERP implementation is, of course, a technological enterprise. Most organizations understand this and stack their internal teams with talented information technology professionals who can effectively evaluate available systems and understand how they might interact with existing backend infrastructure.

However, the software itself is only one half of the equation, according to Panorama. The introduction of an ERP system necessitates more widespread change. Business leaders and managers must adjust existing workflows to align with the new software. Companies that implement ERP solutions in isolation greatly increase their likelihood of failure, as they drop new systems into operations that are just not compatible. Users, faced with either continuing business as usual or integrating an incongruent platform into their day-to-day activities, will briefly feign usage and then go back to their old ways. 

Businesses can avoid this problem by embarking on operational transformations in which ERP systems are simply only one component. Using cross-functional teams, ERP adopters can catalyze the organizational change needed to support the new technology.

Failing to invest in employee training and change management
System usage is often an afterthought – an issue many project leaders only address near the tail end of the ERP adoption journey, if at all. This, of course, is an immense mistake. If adopting an ERP is simply part of a larger strategy to transform the business, then, with this methodology, employees are left without the tools and guidance to navigate the post-implementation environment. How do users react when placed in this position? Most shun the new system and fall back on older methods.

Would-be adopters have watched such situations unfold. Last year, Deloitte connected with chief information officers who have overseen ERP adoption efforts in the past and asked them to identify the most common barriers to implementation. Approximately 82 percent of respondents placed resistance to change in the top spot. This hostility is often the result of ineffective training efforts, as frustrated workers take out their anger on the system itself, no matter how helpful it might be.

The fix here is simple. Project leaders must collaborate with human resources personnel to develop instructional resources that not only cover system features but also address how the new technology affects the business as a whole. Most importantly, organizations implementing ERP platforms should begin these efforts at the beginning of the adoption journey, working with employees to prepare for the change to come, according to CIO.

Handling the entire process internally
When it comes to implementing new enterprise technology, most businesses like to lean on internal IT teams. Although this strategy makes some sense from an organizational perspective, it also comes with complications. Company IT teams, while capable, often do not possess the specialized skills required to effectively vet and deploy ERP software. When they become the drivers behind the implementation process, costly roadblocks arise as they learn on the fly.

Consequently, adopters are better off connecting with ERP experts who have handled countless implementations and can leverage their knowledge of the space to offer solid guidance, according to Panorama. This way, businesses can have the best of both worlds: technical specialists who can integrate the new software into current computational infrastructure and ERP specialists who can render expert advice. However, this is not to say that intern IT workers should not be involved in the planning phase. These employees should be aware of all system specifications to ensure that the software comports with existing digital workflows, according to IT Toolbox. 

With these risks in mind, organizations can move forward with ERP adoption plans and chart out the way ahead, fully understanding the pitfalls that lie ahead.

Is your company prepared to bolster its digital infrastructure with an advanced ERP solution? Contact Accent Software. As a Microsoft businesses solutions partner, we offer the Dynamics NAV platform, the perfect ERP solution for enterprises of all sizes. Learn more about our offerings today.