from IT toolbox
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.