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Why ERP Projects Fail Because of Poor Planning

Enterprise resource planning (ERP) projects may well be the key to your growing business. From Microsoft Dynamics 365 Business Central and beyond, these software systems are designed to maximize efficiency and create value.

Increased financial visibility. Supply chain optimization. Improved service, data protection, and operations management. These are just some of the benefits of ERP projects. Yet, far too many ERP projects fail. Poor planning is often responsible. With that, here are three reasons planning issues may lead to ERP failure:

Project goals aren’t defined

ERP software solutions feature useful tools, seamless reporting, and secure data. The right tools, however, won’t do much if the ERP team hasn’t established a clear set of project goals. Many organizations view ERP software as the answer to their business challenges—but they don’t take the time to define what exactly they’re hoping to accomplish. This is where a solid plan comes in. This plan should include a series of well-defined objectives. These may include a reduced error rate, standardized workflows, and better service quality.

Communication is unclear

ERP projects involving software like Microsoft Dynamics 365 Business Central may also fail due to poor communication. Leadership, the project team, and the software vendor must be in contact regularly to ensure successful implementation. But this too requires careful planning. Specifically, all parties must make time to address each other’s questions and concerns. The aim here is to reduce uncertainty, negativity, and other obstacles that may result from vague or lacking communication. Unsure of how to prioritize candid discussion? Frequent newsletter or email updates, along with weekly meetings, will work wonders for your ERP project.

ERP software was hastily chosen

Before launching your ERP project, you must choose the right software for your needs and goals. Rather than selecting the least-expensive option, or the first one you come across, it’s best to explore your options.

Dynamics 365 Business Central is a great place to start. Its core capabilities are ideal for small to mid-sized businesses looking to connect their financials, sales, inventory, service, and operations. Contact us to learn more about how you can implement Business Central.

Shawna Sharma
Shawna Sharma
Marketing Manager at Qixas Group and Microsoft Dynamics enthusiast. Follow Shawna Sharma on LinkedIn