Why business systems fail

Having systems in place in any business is essential for its operation to reduce time and money spent completing tasks. However, even in incredibly successful businesses these systems can fail and more often than not it comes down to any of these five reasons.

Design faults

As human beings we make errors and these errors can often be found in the systems that we develop. The more complex that a given system is the more likely it is that it will have design faults that can impact on the overall effectiveness of the system. Testing systems before putting them into practice is a great idea and it should be done by someone who wasn’t involved in the development process.

These design faults can often have a flow on effect causing inefficiencies and creating serious problems down the line.

Changes in the external environment

A business has very limited control of the external environment of customers, other businesses and governments. The demands for a particular good or service can be constantly changing as a result of regulations or simply societal preferences.

Often, changes cannot necessarily be explained at the time and the change may come as a shock however it is important that a business is able to adapt. Customers change their preferences, suppliers can change their terms and governments can implement new rules or taxes that impact on the systems in place.

These changes can ultimately have negative effects on the procedures within a business and it is vital that businesses are aware of any potential changes in the making and are willing to update and adjust systems accordingly.

Changes to the internal environment

Changes in roles and new technologies can have a significant impact on the current systems that are in place. Procedures may need to be adjusted to work more efficiently with the new technology or responsibility may need to be shifted when there is a restructuring of roles.

Sub-standard training

Regardless of the quality of your systems in play, if employees are not adequately trained in the required areas then the systems will become redundant. Each new employee should receive an extensive training program to introduce them to the systems that are in use. Additionally, for any new systems the entire workforce whom engages with it should be given a tutorial on how to effectively use it and how it will benefit the business.