1. Purchasing tactically, not strategically: Some time mid-sized business misunderstand there actual problem or some time they don’t get that how to address there problem. IT vendors do too good job selling there products, and to solve some minor problem business man buy full solution without any strategy.
“Decision-makers sometimes have pet projects that are less strategic and more tactical – they select solutions that plug a hole vs. rebuild a dam.” – James Kuhl, Power Consulting
Sometime companies spend thousands on solution, which could cost only hundreds. According to our experience and research, small businesses are just as likely as Fortune 500 companies to spend too much time and money on their implementations without realizing the expected business benefits.
2. Under-Investment in problem solution: Sometime mid-sized business under-investing in business problem solving. Every problem do need perfect solution weather it cost more then your estimated budget. No ERP implementation is simple or low cost -not even for the smallest of organization.
Customize pre-implemented low cost ERP is more costly, so its better to implement perfect solution in first time only.
3. Fear of adopting new technology: When it comes to adopt new technology many people hold on to tested technologies. People do have fear to learn new technologies, and it cost to there business solution. New Technology carry failure chances with them, but they should understand that every successful technology was new at some stage.
Updations are basic rule for any business. So Fear of the new can be harm-full or it can slow down your business.
4. Lack of a change management policy: Every new change in old predictable system can affect whole organization, it affect most to the bottom level employees. But it’s duty of top management to manage this change and handle the situation with proper change management policy.
Most of the employees feel the fear of losing there job because of ERP system.This is such an issue which should be handled with grate sensitivity and concern. If top management fails or lake in change management it could affect negative in ERP system and company profit too.
5. Focusing on cost only: While taking decision, focusing on cost only rather then need and other aspects can direct your decision in wrong way. ERP is a very large system contain every department of your business in one system. So decision for ERP require every point of to get covered, so it helps you to take right and profitable decision.
Your cost-only approach can let your business face challenges, so its better to work on fact-base approach.