Challenges and Solutions in ERP System Implementation in Japan

Implementing an ERP system is an important step for many companies to streamline business processes and enhance competitiveness. However, in Japanese companies, we often hear that ERP implementation is fraught with problems. This article explores the specific challenges faced by Japanese companies and solutions to address them.

Specific Challenges in ERP Implementation

Complex Customization

In foreign companies, ERP packages are often implemented with minimal modifications to standard functions, resulting in fewer implementation problems due to limited customization.

In contrast, Japanese business processes are extremely complex, and many aspects cannot be fully addressed by standard ERP packages. This necessitates extensive customization, which increases the likelihood of system failures during the process.

Vendor Dependency

Many Japanese companies entrust ERP implementation projects entirely to vendors and fail to accumulate necessary knowledge and expertise internally. As a result, it becomes difficult to respond quickly when problems arise.

Resistance from the Field

Strong resistance from the field to changes in existing business processes and systems is also a contributing factor. Anxiety and resistance to new systems hinder smooth implementation.

Insufficient Project Management

ERP implementation projects are often large-scale and complex. Inadequate goal setting, planning, and progress management can lead to project delays and budget overruns.

Solutions to Challenges

Verifying Internal Processes

First, it is important to reconsider whether your business processes are truly correct. By identifying unnecessary processes and areas for improvement, and implementing systems based on these findings, you can reduce extensive customization and minimize problems.

Accumulating Internal Knowledge

It is also important to accumulate knowledge and expertise about ERP within your company rather than relying entirely on vendors. This enables quick responses when problems occur.

Embracing Change

To reduce resistance from the field, appropriate education and communication for employees are essential. Understanding the benefits of the new system can alleviate resistance.

Strengthening Project Management

By thoroughly implementing goal setting, planning, and progress management, and strengthening project management, you can prevent delays and budget overruns. It is also important to conduct risk management and prepare countermeasures for when problems occur.

Conclusion

While ERP implementation in Japan certainly faces many challenges, it is possible to overcome these challenges with appropriate measures. Companies can increase the success rate of ERP implementation by reconsidering their internal processes, accumulating internal knowledge, embracing change, and strengthening project management.