Why is implementing a management system such a challenging task? Learn more about the 9 common mistakes companies make when implementing management systems.

Enterprise Resource Planning and ERP software have changed the way companies operate. They have brought order to what was once a disorganized environment by simplifying, standardizing and integrating processes across the different departments of organizations, such as purchasing, finance and distribution, among others.

But there are other types of solutions that have the same characteristics as ERP software: they are modular, involve the different company departments and also promote improvements in corporate and strategic areas.

They are integrated management solutions for business excellence and compliance.

Why is implementing a management system such a challenging task? Since the solution has corporate impact, it is always challenging to involve different areas and resources in a common project. Failure to properly implement the management system can result in wasted money and resources, and even delay or compromise the realization of the expected benefits.

The sad truth is that implementation failures are a common occurrence. For example, in the ERP market it is common knowledge that 75% of implementations fail. When a company fails in the implementation of enterprise management software, you can be certain it was for one or more of the following reasons:

1. Ineffectively defining system requirements

It is easy for a company to automate existing processes by implementing a software solution. However, these processes must be thoroughly analyzed when gathering information about the requirements expected of the system.

Poorly defined requirements can lead to a number of problems during implementation, and even after implementation. In extreme cases, it can result in legal battles.

What to do: remember that enterprise management software is designed to automate and improve processes. Potential users should identify which areas need improvement and what is expected of the system before implementing the platform.

2. Excluding users from decision making

Contrary to what many organizations actually do, employees who will use the software should be consulted when purchasing a solution. Most IT managers spend their time getting their projects approved by experts who generally overlook this very important step.

What to do: to prevent this from occurring in your organization, allow enough time to ensure that key employees are involved in the purchasing and implementation process.

3. Failure to properly choose between Cloud or On-premise modalities

There are factors to consider when choosing between on-premise and cloud implementations. On-premise tools require IT staff to maintain the system and hardware. This kind of implementation is suitable for organizations that want to have their systems running in their own installations. Cloud-based software, on the other hand, requires a stable and secure internet connection to serve off-site personnel.

Cloud implementations are gaining popularity in today’s market, but they are not without certain challenges. You have to look at the advantages and disadvantages for each particular situation.

What to do: Identify your business needs and constraints before purchasing.

4. Inadequate IT department budgets

Decision makers often make the mistake of running out of budgetary resources for the system implementation, which is just not limited to the necessary hardware and software. A successful implementation also requires resources for a competent IT team. Limited implementation budgets can result in project failure.

What to do: Management should elaborate implementation budgets with others involved in the process.

5. Quick implementation

Given the complexity of enterprise management systems, quickly identifying implementation requirements, carrying out user training and activating these systems simply cannot be done all at once. This implementation model is proven to be ineffective. Successful organizations choose to take a slower and more efficient approach, which involves an incremental implementation.

What to do: carry out the implementation of your system one step at a time. Every step in the implementation process is important.

6. Underestimating change management

Any software implementation should include the element of change management. All stakeholders must be able to cope with the challenges of change when they occur. Organizational changes involve employees, technology and processes, which can result in the positive transformation of any business.

What to do: Simply focusing on technology to improve processes is not enough; human resources and strategic planning should also be considered.

7. Focusing too much on tool features

Of course, the importance of platform resources should never be overlooked, but one must also consider the platform’s history, flexibility and capacity to integrate with other systems, among other aspects.

What to do: take time to evaluate the resources of each potential platform before making your decision.

8. Lack of investment / support for the implementation team

One of the most important phases in a system implementation is the allocation of time and resources for the implementation team. The right people with decision-making power are necessary for a successful implementation. However, this means that team members have to deal with task reassignment, which often occurs in the implementation process. This can determine the success or failure of any implementation. Decision makers have to be sensitive to the needs of their business and technology teams.

What to do: you need to allocate enough time and resources for your implementation team to ensure the success of the project.

9. Ineffective communication

Lack of communication, especially between corporate departments, can negatively impact any corporate management system implementation. This can be avoided by creating a communication plan for all phases of the project. You should also create a small team of employees from all departments most likely to be affected by the solution.

What to do: implementation teams should ensure that the main team is constantly updated on project progress.

The most comprehensive corporate solution for integrated management of business excellence and compliance

SoftExpert Excellence Suite is a solution that meets all critical requirements for excellence in organizational performance in a collaborative manner. SoftExpert Excellence Suite components can be implemented as business needs grow and require the addition of new functions.

With SoftExpert Excellence Suite, interconnected applications in a single collaborative work environment replace multiple isolated management systems that only address specific business areas, leading to substantial losses from the duplication of functions, lack of visibility and inconsistent data.

In addition to providing a comprehensive tool, all services offered by SoftExpert are performed by highly qualified professionals, supported by processes, tools and methodologies that guarantee the quality and effectiveness of implementation projects.

Tobias Schroeder

Author

Tobias Schroeder

MBA in Strategic Management from UFPR. Business and market analyst at SoftExpert, a software provider for enterprise-wide business processes automation, improvement, compliance management and corporate governance.

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