Microsoft Dynamics AX is a powerful ERP solution that helps organizations to reach new heights of success, if implemented successfully. Planning, tracking, and coordinating resources improves efficiency and adds value to nearly all aspects of a business. Despite the critical role Microsoft Dynamics AX plays, most companies fail when it comes to implementing or upgrading the ERP software.

There can be various reasons for Dynamics AX ERP implementation failure: limited awareness of available software functionality, insufficient testing, not enough user training, budget overruns and, uncertainty about the specific needs of various business units. 

The analyst firm Gartner estimates that 55%-75% of all ERP projects fail to meet their objectives. While implementing Microsoft Dynamics AX, the financial and cultural health of the entire organization is always at stake, and the associated costs of failure range from disruptive to catastrophic. Due to this, organizations should do everything possible to ensure success in the Dynamics AX implementation.

Below are the top five tips enterprises should follow to avoid a failed AX ERP implementation or give it a second chance:

• Be sure of what you want from your ERP software – The project initiators are often unsure of what they want and, as a result, repeatedly change goals and requirements. This leads to increased costs, delays and implementing a software solution of inferior quality. Be absolutely sure about the functionalities which you require from your ERP system, and then start working on the ERP implementation or its upgrade.

• Align the ERP solution with your company strategy, depending upon the current situation – Analyze your company’s current situation, data and processes. Re-examine the existing systems and document their defects and advantages, along with all the activities and processes they support. Determine which aspects of the ERP system are aligned with your business strategy and leverage those features further.

• Provide comprehensive training to the users – In order to reduce the overall costs, businesses have a tendency to cut back on the training required for understanding and using an ERP system.  This results in unsuccessful utilization of the system resources. Training is essential to leverage the system’s abilities and realize gains. Further training is also required after every version update to achieve optimum benefits. Training is available for AX on Microsoft’s website, and many service providers also provide training.

• Involve all stakeholders – Make sure that every department which is going to use the ERP software gives thorough inputs and receives regular communication about progress and decisions. Commitment from internal teams is a must for the smooth working of the system. Demonstrating cost advantages, encouraging participation, and clear communication all helps to overcome resistance, as shared in a Computer Weekly strategy clinic.

• Take the help of knowledgeable consultants – ERP consultants understand the exact industry standards, technology, and communications systems in their client’s industry. Using a 360 degree approach with your company, they can guide you to make the right decisions to ensure future success.

With 50% failure rate of implementation of ERP systems, are you confident the investments in your ERP systems will be fruitful?