(iv) Another key challenge is a lack of understanding of the ERP application by the consultants. Additionally, lack of resources represents a major concern in ERP implementation Define Authorizations: The main challenge in this activity is incorrect definition of roles and authorizations within the organization and non-existence of organization hierarchy Data Conversion: The main challenge in this section would be to Data-related which include finding the proper data to load into the system and converting disparate data structures into a single, consistent format before system use. Data Migration Program Development: Potential challenges that could be presented during the execution of this activity are: (i) Lack of coding skills, (ii) Improperly defined data
System Testing: The Main challenges faced in this section are (i)Lack of proper load testing (ii)Lack of proper process testing (iii)Lack of proper testing techniques 4) Analyze these risks and make a guess of the severity of each risk with regards to its impact on the project. Prioritize these risks. 1. Failure to Redesign Business Processes to Fit the Software: There is strong desire to fit the new ERP system to fit to current process. But this is hardly the case. In fact the right thing is to redesign your current processes to fit to purchase ERP system. The reality is neither option is easy. It is very difficult in most business to change old or existing processes and to customize the ERP system to fit to current processes is costly and time-consuming venture. In my view this is biggest ERP implementation risk 2. Lack of Senior Management Support Support of top management is crucial for accomplishing projects objectives. It is easy for senior managers to become a sponsor but very difficult to let go the crucial team member for pilot testing or super user training. The unfortunate fact is the people who need to be trained as “Super Users”, are the same “key” people who run the business. The lack of senior people support to give time away from the desk, as they are too afraid to miss sales, delivery to customer is one of the most common ERP implementation risk. 3. Insufficient Training and Reskilling of End-Users A number of firms learned that investment in training and reskilling the employees were higher than expected. Most ERP implementation comes with deadlines that need to meet. As a result, there is hardly enough time to train most people and give them skills they need to reach the satisfactory performance state. 4. Lack of Ability to Recruit and Retain Qualified Systems Developers Many of the organizations found it difficult to recruit and retain good ERP specialists because the market rates for these people are high. The developers of biggest market share ERP vendors like SAP, Oracle, Microsoft Dynamics and Informatica are in high demand and moves from one consultancy project to another. So not finding a in-house ERP specialist could be significant ERP implementation risk.
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