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Why do ERP implementations fail?

To answer this question, I propose to consider three main reasons: customers, ERP systems themselves and consultants who help them choose.


Customers


Of course, they are different, but they can be classified and even necessary:

  1. State bodies and enterprises.
  2. Big business.
  3. Medium business.
  4. Micro business.

The first group has a pronounced specificity and special requirements for planning its resources. Therefore, the introduction of an ERP-system is fraught with a number of difficulties, which often you can not affect in any way. I mean, for example, the choice of a supplier only on a tender basis (with strict rules and priorities), budgeting, bureaucratic processes, the ability to access certain information, etc. A separate topic is the immersion of employees of such structures in new working conditions, over if the project succeeds in completing. Due to these features, ERP implementation can stop at any stage and remain frozen or not implemented at all.

The second group - private large business - is no less complicated than the first, only for other reasons. In particular, in large companies, the sphere of influence of top managers and the number of permanent (“approved”) performers in all areas will be an obstacle to choosing you as a contractor. Exceptions happen, but only when you change the top echelons of the company’s leaders or in some emergency situation, you are fortunate enough to be at the right time, in the right place and with the right offer.

But medium-sized companies often operate in real market competition and are very interested in good governance, transparency, optimization, increasing customer loyalty and labor productivity. Here, as a rule, when developing a project for implementing an ERP system, you will discuss the nuances with the head of the company, since he delves deeply into all processes. These customers are quite mobile and decisions are made without unnecessary bureaucratic delay. True, failures also occur here, which we will discuss further.

Microbusiness can also consider the implementation of ERP, but in this case it all depends on the tasks, budget and the chosen system.



Quality ERP systems and consultants


A very important aspect on which the success of the venture to implement ERP depends. Since it is necessary to select it based on the tasks of the company, the customer himself must have a clear idea of ​​what exactly he wants.

However, not everyone thinks about it. And some who are not particularly concerned about the result, sellers of such systems sell a product convenient to them. And if he did not coincide with the tasks of the client, the success of the venture is unlikely. As a result, we get a dissatisfied and disappointed consumer in ERP. This is exactly what I mentioned above, when I stopped at medium business.
To prevent this from happening, the customer should study in detail the offers on the market and look for a good artist.

The same applies to consultants, since not all of them do their job conscientiously. It is possible to determine exactly which manager you are dealing with according to a simple criterion: if you want to hire this person, you can listen to his words (though it’s worth checking anyway).

So, it is important to understand that the ERP system is a reflection of your business. Accordingly, the approach to its selection and implementation needs a comprehensive, thorough and justified. Only then will the changes prove justified and effective.

“Productivity is not an accident. It is always the result of striving for excellence, smart planning and focused efforts. ”- Paul J. Meyer, author of books on leadership.

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