Technical advancement has revolutionized the AEC industry. Technology has replaced the traditional methods of construction with the digitalized module. One such technical advent is cloud-based construction ERP. The ERP system is software that is designed to automate the construction process. The software offers easy tracking and sharing of information. Cloud-based ERP not just assists with streamlining the business flow but also helps to overcome the obstacles faced by the AEC industry. One such obstacle that impacts the business process is the implementation of the ERP system. Several business firms in the AEC industry still rely on the traditional methods of construction. The radical shift from traditional methods to the digitalized norm of ERP implementation proves to be a challenge for the industry. Let’s analyze the challenges that surfaced in the process.

Why ERP implementation is difficult?

The implementation of ERP is a complicated task. The ERP software impacts the working of the entire business. ERP causes a paradigm shift from manual processes to automation of the process. The functional groups and teams need to adjust to the new work module and come up with solutions to bring their work to par with ERP. The organization also requires a dedicated team to represent users on the ERP platform. In addition, a team is required for handling the working of the software.

Challenges surfaced in ERP implementation

ERP Vendor selection

In the competitive business environment, the selection of the right resources leads to productivity gains. For ERP implementation the first step to success is finding the ideal ERP vendor. The ERP market boosts several existing ERP applications and vendors. Choosing from the available options prices to be a dainty task. For the selection of the ideal ERP, application one needs to study the portfolio, research industry vertical, client experiences of the ERP application. The ERP vendor offering applications within the set budget that cater to the business requirement needs to be selected.

Senior Management Acknowledgement

The senior managers play a key role as decision-makers of an organization. Their involvement, opinion impacts the success rate of a project. Lack of effort and commitment from senior members delays the decision and operational processes. Often the senior members are rigid to changes and changing their mindset towards acceptance of the ERP implementation is a challenge. To make the ERP implementation successful it is necessary to convince the senior management to accept the ERP norm.

Software Training

To make the ERP of use for the operational processes the employees need to familiarize them with its working process. Being new to ERP employees tend to have resentment toward it and the results in downgraded productivity. To improve productivity it is necessary to train the staff in ERP management. The cost of hiring ERP professionals for the training session proves to be an additional cost and also consumes time. Companies with a low budget tend to refrain from the cost of hiring trainers.

Time Management

The ERP implementation is a time-consuming process. Initiation of the ERP takes one month, analysis of the company needs takes one to two months, the configuration of ERP and testing takes another one month. Post configuration the period for validation, deployment and optimization takes around3 4 months. The overall time it takes to implement ERP na start its working takes around 7-8 months. It is a very time-consuming process because the ERP needs to be customized as per the business and operation requirements.

ERP Management Plan

For ERP implementation a proper plan needs to be set for its management. The plan determines tracking and evaluation methods develop premises establishes tasks, evaluates alternatives and identifies resources. Forecasting, planning and estimation are the keys to successful ERP implementation. A proper ERP management plan helps to clear goals, find ongoing issues and analyze possible solutions. Often companies fail to create a realistic plan for ERP implementation and management thus leading to cost overruns. Planning makes the decision-making process easy and also keeps a track of the projects. The companies that need to implement the ERP system need to align skilled employees for successful ERP implementation.

Implementation Cost

The cost incurred in ERP implementation is higher than the initial costs. The budget is dependent on the customization cost faced in building the ERP. Usually, the ERP customization cost is higher than the overall implementation cost. So the companies need to be wary of the cost overrun in the budget.

Retaining Employees

It often happens that the employees despite attaining ERP training tend to fail to adapt to the new norm and leave the organization. Employees leaving serve as a major dent in the company’s progress and growth. The task automation feature of ERP removes manual procedures thus causing a sense of insecurity in the employees. The insecurity and threat to job safety cause panic to develop in the employees and compels them to resign.

Insufficient Testing

The ERP testing determines the smooth functioning of the application. Insufficient testing of the system causes costly unplanned updation and performance degradation. The testing phase takes more time than the implementation.

Maintenance Cost

The ERP implementation needs periodic maintenance. Without maintenance, the system tends to crash and develop run time errors. The maintenance cost adds to the expenses and causes over budgeting. Complete maintenance costs are high but check the system, infrastructure, software, database and human resources.

Internal Hardware Investment

The ERP software requires sufficient storage for data storing and high work performance. Investment into poor quality internal hardware degrades this performance. The poor hardware also causes software issues and leads to unprecedented business downfall. To boost the performance the companies need to invest in the purchase of high grade internal hardware. The high-grade internal hardware cost a lot.

To make the ERP implementation successful the organization need to address these challenges and workout on discovered loopholes. The ERP implementation would not just streamline the business processes but also would automate the work processes along with budget management. ERP since its inception has gained global recognition. The software has helped the AEC industry to progress a lot and have an edge above its competitors. The software assists in manifold the profits generated. Although the challenges that surfaced prove to be an obstacle in the path of ERP implementation but overcoming them would help the companies to reach greater heights.