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Summary:
Why do some ERP implementations fail? Is there any
way to guarantee a successful ERP implementation?
Answer:
I will try to summarize the top 12 reasons ERP Implementations fail in most
companies and a proven process that achieves success in the implementation
process.
The top 12 reasons ERP Projects Fail:
1. Education (Not understanding what the new 'system' is designed to
achieve)
2. Lack of Top Management Commitment (Management being involved but not
dedicated)
3. Inadequate Requirements Definition (current processes are not adequately
addressed)
4. Poor ERP Package Selection (the package does not address the basic
business functions of the client)
5. Inadequate Resources employed
by the Client
6. Internal Resistance to changing the 'old' processes
7. A Poor fit between the software and users procedures
8. Unrealistic Expectations of the Benefits and the ROI
9. Inadequate training (users do not properly how to use the new
tool)
10. Unrealistic Time Frame Expectations
11. A Bottom up approach is employed (the Process is not viewed
as a Top
Management priority)
12. The client does not properly address and plan for the
expenses involved.
A proven path to implementation success:
1. Education and training. Educate everyone to understand what
is going to
be achieved with the new system. Additional education should
include Total
Quality Management, Change Management Strategies. Train process
owners
(department managers) in how to use the system. Have them train
the users.
2. Business Analysis to streamline the current processes.
3. Planning, training and education for the IT Support staff to
understand
the new hardware, software and network imperatives.
4. Business Process Redesign (Match business processes with the
new
software).
5. Software Modifications only when Business Processes that do
not
differentiate you in the marketplace are not supported by the
software.
6. Business Simulation (on a department level and a global
level).
7. Go Live - (a phased approach may be indicated based on the
amount of
change dictated by the new system.)
8. Implementation Review (Performed after users are competent
with the
system. The goal is to ask the software vendor to suggest better
ways to use
the system.)
These 8 steps should be applied to each 'phase' of the
implementation
process.
*Questions excerpted from
ITToolBox.com*
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