Remote ERP Projects: Why they fail
or get delayed

1. Working in small Stages encourages incorrect Prioritization in ERP Projects

Remote projects can promote a focus on the big picture because they encourage a working in smaller stages with breaks in between. This means that relevant requirements are not ignored in earlier project phases. And the risk of having to make time-consuming and costly changes later on is considerably reduced.

Under certain circumstances, however, working in short stages can also lead to an increase in workload elsewhere in the project.

The apparent contradiction can be illustrated and resolved by a visual comparison. If a hiking group explores a longer route in several short stages, the risk of participants overlooking good views and other points of interest is significantly reduced. At the same time, the more stops there are, the greater the temptation for group members to linger too long at individual points of interest and get lost in the details.

Even in remote projects it can happen that employees or working groups focus too much on individual questions and problems, which can cause them to lose sight of the big picture and wrongly prioritize requirements for the new ERP software. Technical features with questionable added value may then take the place of long-term business value for the entire company.

To avoid this, the following test criterion could be applied: for each requirement or customization, a good business case should be feasible.

Furthermore, it is important to organize the project work at an early stage in order to keep the implementation effort within the planned limits. Appropriate coordination is also crucial. The right employees should be appointed to take on these tasks.

The new way of working can cause difficulties with remote ERP implementations. Working in smaller, more frequent stages can initially increase the effort required for organization and coordination. However, once these problems are under control, the advantages often clearly outweigh the disadvantages.

2. Communication Tools and Technologies are not coordinated

For most companies, the everyday use of modern means of communication is a matter without saying. If projects are handled completely or largely remotely, the requirements for communication technologies and the handling of them increase significantly. This sometimes causes difficulties that were not or not so noticeable in the past.

Problems can arise if you focus too much on one communication method and neglect others during remote ERP projects.

This can affect collaboration between the customer and the ERP vendor as well as between individual teams and departments within the company. The remote implementation or rollout of a new ERP system may be delayed as a result.

For example, video conferencing is often a cost-effective alternative to face-to-face meetings. They are an important component in many remote projects. However, this often leads to this means of communication being used too often and too one-sidedly. The result is poorly prepared meetings and flat discussions.

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Furthermore, if you fail to sufficiently involve the participants in video meetings, parallel discussions often develop. Individual employees then use the chat function of the video conferencing software, for example, to discuss irrelevant topics. Or they try to complete tasks from day-to-day business, such as processing emails.

You often end up without any significant results despite many video meetings.

For this reason, the use of communication options should be coordinated. Different communication tools and technologies are suitable for different purposes.

For example, it can be advantageous to set up a virtual project room right at the start of the ERP implementation. Important data and documents can be prepared and made available centrally for all authorized persons. If necessary, they can be referred to in a video meeting, email or telephone call.

Traditional communication technologies still have their place too. A project-related question can sometimes be discussed more quickly, in more detail and more individually by telephone than by convening a video conference.

In addition, expert employees who are entrusted with the preparation and follow-up of video meetings can help. These employees could also act as competent contact persons who can quickly provide support when it comes to organizational and content-related problems during the online meetings.

Furthermore, it is advisable to ensure that the number of participants in video conferences does not exceed the single-digit range if possible. This is particularly important if employees are to be more involved in the issues and actively participate.

Practical experience also shows that communication problems in remote projects are sometimes caused by bad technology. The video image may then freeze in the middle of the video meeting or the loudspeaker sound is difficult to understand. Frustration and misunderstandings are the result. If these problems persist over a long period of time, a project can come to a standstill.

Another point concerning video conferences is the speed and reliability of the internet connection, which should not only take into account the quality of your own internet connection, but also the fact that employees may be connected from abroad or on the move. Furthermore, data transmission for video meetings often takes place via an external VPN service or similar technology. This can also have an impact on the speed and reliability of data transmission and should be considered.

3. The ERP Vendor sticks to the Traditional Way of Working

As soon as there is a new business trend, many companies try to jump on the bandwagon. Some companies are better positioned, others worse. In the case of remote ERP implementations, it’s no different.

Companies whose processes are heavily built around a traditional way of working and culture may find it more difficult to migrate to remote projects. Especially with larger, older ERP vendors that have many established structures, the need for coordination is often high. Necessary changes and adjustments to a new way of working can then take longer.

Such vendors may then initially try to transfer the traditional implementation process largely one-to-one to the remote context. An example of this is when the topics of a conventional face-to-face day are squeezed into a grueling mass video conference that lasts an entire working day. It is not uncommon for important questions to be dealt with without the necessary depth and for relevant requirements to be overlooked.

Such and other unfavorable procedures and circumstances can lead to the remote implementation of the ERP software repeatedly coming to a standstill and in the worst case, failing.

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Smaller, younger, more agile and at the same time well-managed ERP vendors that have largely digitized their work processes can often carry out remote ERP projects more flexibly, quickly and reliably.

In addition, vendors - whether large, small, old or young - whose way of working already showed major deficits in on-site ERP implementations are likely to retain these deficits in remote ERP projects. New technical approaches can optimize and simplify processes, but cannot eliminate fundamental deficiencies resulting from organizational and work culture.

4. Larger Selection of ERP Vendors makes the Decision more difficult

Remote implementations eliminate physical distances. Theoretically, ERP vendors from almost anywhere in the world can then be considered. Increased choice increases the number of options available, but can also make the decision more difficult.

Once the number of options reaches a certain size, it becomes increasingly difficult to maintain an overview.

There is then a risk that the search costs will skyrocket or the decision will be made arbitrarily. It is possible that the focus when selecting ERP software is too one-sidedly on the price or on certain peripheral features. This can lead to expensive and time-consuming workarounds having to be implemented later. In the worst case, the unfavorable circumstances lead to failure of the ERP implementation.

A wrong choice of ERP vendor for a remote implementation can also be expensive. After all, you usually commit to the ERP business partner for several years, resulting in poor support during and after the project. It may even be necessary to switch to a different ERP vendor.

Further problems can arise if ERP vendors from abroad are involved who do not have subsidiaries in the DACH region. In some cases, it may make sense to consider such vendors. For example, if highly specialized ERP software is required for which there is no corresponding offering in German-speaking countries. In many other cases, however, the disadvantages are likely to clearly outweigh the advantages.

Communication with foreign ERP vendors who do not specialize in the German market can be challenging. The legal situation abroad also harbors uncertainties. In addition, not all countries have a well-developed and expanded IT infrastructure. Furthermore, the working culture differs from country to country.

Moreover, the functionality of foreign ERP systems is often not tailored to the requirements in German-speaking countries.

The likelihood of hidden costs and problems arising in the course of the remote project also increases with foreign vendors. These can include the fact that the progress of the ERP project has to be checked and adjusted much more frequently by the customer.

In principle, it is positive that the possibility of implementing ERP systems remotely significantly increases the selection of ERP software and vendors. However, in order to avoid unforeseen difficulties to the extent possible, it is advisable to ensure that the remote ERP vendors come from German-speaking countries. Everything else should be checked more carefully.

Last but not least, when choosing an ERP partner, special attention should be paid not only to the exact fit of the ERP system to the individual requirements, but also to the financially sound position of the ERP vendor. This is a basic requirement for reliable long-term service and high quality of services.

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