5 Reasons why ERP Implementations Fail

The IT industry has seen numerous changes, with respect to the business environment. Due to constant flux in the global arena with respect to business, the ideology behind enterprise applications has also changed. ERP projects are no longer a five-year plan, and project management has evolved to cater to this flux. Regardless, ERP implementations fail, still. And sometimes, for obvious reasons. These are 5 key red flags why ERP Implementations fail.

Process Re-engineering Never Takes Place

One of the key reasons why ERP Implementations fail is that organizations never consider change management as an option. Key reason to undertake re-engineering or process improvementis only to be able to improve business processes to implement the ERP solution on enhanced, improved, and productive processes within the organization.

Imagine it like this, you want to cook a nice dinner by following a recipe, but you don't have the right ingredients. Only two things can follow, you continue to modify the recipe to fit the ingredients, or you discard the recipe altogether. The recipe, my friends, is your ERP implementation!

That does not mean, change management initiatives may not fail either! But the right processes can result in a better, more productive ERP Implementation.

Poor Project Management

Weak project management can result in a catastrophic project implementation.For an ERP Implementation to result in success, organizations need to evaluate the value of, and hire a project manager that is experienced and knows the value of project management methodologies. If work is organized and kept according to specific schedules, it can help the organization to be more methodical in their key enterprise application implementations.

Mushawar Consulting has a team of experienced project management professionals, who have managed several projects in varying lengths in a number of organizations. For more details on how we can help you to manage your ERP Implementation, drop us a note on talktous@mushawar.com.

Buy-In Of The Management

Any ERP implementation will work, only if the top management and the influencers are in line with the goals of the implementation. If their input is merely limited to signing off on the budget,and only notifying their team about the implementation, the ERP Implementation is doomed to failure. Commitment in terms of involvement in the project, and delivering the right message across to the team, towards putting in an effort towards the implementation, are top ways to avoid ERP Implementation failures.

Not Choosing The Right ERP Solution

Among other problems, organizations often fail to choose the right enterprise application for themselves. More often than not, this is a result of not validating and identifying accurate business needs. Effective ERP solution selection process involves various steps, and not just finding the right business needs. This also includes organizational goals, growth plans, and the right fit of the solution with the rest of the technology landscape in the company.

Not Identifying The Right Business Goals

With a focus only on fixing the symptoms and not the problems, ERP Implementations fail. The only reason for that is, the organization never identifies its key objectives as to why it needs an ERP solution in the first place. Further to that, estimations generally fall short of the requirement,where resources, time, effort, money and often external help are budgeted far less than required.