Challenges of ERP Implementation for SMEs

An ERP implementation can be complex due to various reasons because if any issues arise in ERP implementation then it affects business processes across the entire organization. One of the major challenges while implementing ERP is changing the ways of users and functional groups work with the new solution.

This can be only achieved with strong project management and backing from senior leadership. To set up the new system, the organization needs a committed project team that brings all the users to the ERP platform. Hence, it ensures that the software will support the needs and business processes of all departments across the company.

Limited Awareness Of ERP

In the current market, the biggest challenge that a lot of SMEs faced because of ERP implementation is the lack of awareness & knowledge about ERP solutions. So many companies keep managing their employee resources manually through spreadsheets to this day and are unaware of the capabilities of what an ERP system can deliver and what benefits it can bring to their organization.

Misconception

Due to the lack of awareness, there are misconceptions about ERP systems, especially in SMEs. There is a very popular yet one of the biggest misconceptions is that ERP solutions are only for big enterprises and SMEs won’t be able to afford the implementation and maintenance costs of an ERP system.

Lack of Resources

Many budding SMEs do not have access to an IT team or a dedicated person in charge of implementing and managing an ERP system. In the early stage generally, SMEs do not have anyone to provide them guidance and doing it on their own seems to put an extra burden on the shoulder of SMEs.

However, several ERP solution providers can be really helpful in such scenarios to assist companies by implementing and managing their ERP systems. These consultants are well versed in efficiently taking care of the maintenance and resource allocation.

Financial Concerns

Budgeting can also be a challenging aspect for so many SMEs. As so many SMEs in their early stage do not hold sufficient amount of capital and they have to limit their expenses for spending. Hence, the SMEs cut down the ERP solution to save costs. However, companies do not realize that an upfront investment into implementing an ERP solution can boost business growth, generate huge revenues and improve productivity in the future.

Bringing the Team on Board

The majority of SMEs lack structure, and their employees struggle to adapt to the digitization and learn new solutions from scratch. It can be a challenging and time-consuming process to get the team excited about attending training and learning the ERP system. Due to a tight budget, training is also not as thorough, leaving workers to conduct the majority of the necessary research and learning on their own.