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Doing so will help ensure an accurate cost representation, mitigate scope creep, and increased success rate. It’s vital for migration teams to collaborate with their ERP providers to assess what applications and dependences need to be moved to the cloud. For instance, Acumatica customers SEACOM and Incubeta were able to successfully migrate their data because they strategically and patiently assessed business processes before fully committing. By failing to discover and account for the interdependencies between on-premises systems, businesses might incorrectly group and order application migrations, creating delays, and increase costs. A rushed application assessment can also lead to dependency bottlenecks.

Failing to fully assess business processes prior to migration can result in an incomplete requirements document and downstream scope creep – sometimes to the tune of over $100 million. According to Gartner, the most critical phase in a cloud migration project is application assessment. Gartner cites six ways cloud migration costs can go off the rails. Challenge number two – unexpected delays and associated costsĪlongside employee resistance may come other challenges, such as time delays and unexpected costs. Remind employees of the pain points that will be resolved, the time that will be saved, and ask for regular feedback during the implementation process. There are some people who prefer sticking with the tried and true no matter how well you communicate the benefits of a new system. During implementation, invest in training employees so they feel like experts on the new system. Communicate the plan to your employees early, provide regular updates, give them time to digest the situation and request feedback on functionalities and capabilities they would like from the cloud ERP software. For employees, the disruption to their daily activities and workflows must be mitigated by the ERP system’s expected ease of use, flexibility, and increased efficiency. Challenge number one – employee resistanceĬhange is never easy it shouldn’t be surprising if your employees are reluctant about transitioning to a new business management system. For an ERP implementation to get off the ground, organizations need approval and championing from leadership and IT teams, as well as support from the team members who will be using the new cloud ERP software. It’s important for business leaders to understand what implementation challenges look like, and how they can mitigate those stumbling blocks. There are several challenges organizations might face when undertaking an ERP implementation, including employee resistance, project delays, unexpected costs, navigating data migration, etc. As such, some business executives might feel apprehensive about the ERP implementation process, including concerns about the initial investment, complexity of implementation, internal resource constraints and employee training. After all, migrating users is a highly visible project that can bring significant complexity and time constraints.Ĭompanies can find it difficult to deal with the challenges an ERP implementation might bring, especially if they do not have an implementation partner on their side. However, despite these advantages, implementing a cloud-based business management system (e.g., ERP) can be daunting.

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The cloud has significant business advantages, including hardware cost savings, reduced manual effort, no software maintenance, a single source of truth, and increased scalability and performance of applications. The number of organizations moving to the cloud has grown immensely in recent years, and cloud-based computing continues to be a high-growth segment of IT spend. Today’s enterprise landscape is pushing businesses to adopt modern, cloud-based business management solutions to help them meet current demands.

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