Reasons of ERP Projects Failure

The defining element in the success or failure of an ERP implementation is mainly one of project management. The presenter draws on observation, past experience and research to build a best practice based strategy, or approach that will lead to a successful ERP implementation experience.

Most of the times organization have seen ERP projects fail for the following reasons:

1. Software selection was wrong
2. The software does not work as promised by vendor
3. Too many customization or interfaces to the software were attempted.
4. Lack of top management sponsorship for the project
5. Lack of a proper project plan and their execution
6. Poor or no training was provided to the user
7. Lack of business or technical resources committed to the ERP project
8. Lack of effective change management strategies
9. User refuse to use new ERP system, it is again due to improper training
10. A business merger terminates a existing implementation

Here, I will attempt to share through ERP consultant’s experience, observation and research various strategies that give you the best chance of achieving a successful ERP implementation experience.

Critical factors toward achieving a successful ERP implementation are:

1. Selection of the right ERP software
2. Manage organization’s expectations
3. Mitigate risks
4. Exploit the best business practices built into the ERP software
5. Get the step by step phase wise implementation
6. Prepare proper blueprint of ERP implementation
7. SRS study - this will help you in selection of software
8. GAP analysis to map organization process and ERP software
9. Selection of experienced ERP vendor- new company or vendor may not be able to give you proper support and service even after successful implementation.

Take a systematic approach. It is also important to point out early on in any discussion about successful ERP implementation some important points and realities about ERP implementations in general. This can be:

1. The ready to use or perfect ERP system does not exist.
2. ERP implementations are different in every organization – it never be the same as previous
3. There is no perfect ERP implementation
4. No ERP implementation is ever complete- It requires support and services, upgrades and updates, technological changes, etc.

Organization should be open for these situations and ready to adopt new challenges and opportunities.

Read information on Causes of ERP Failure and Prevention. Also know How to Fix a Failed ERP Software Implementation?