Why do some ERP implementations fail?

Why do some ERP implementations fail? Is there any way to guarantee a successful ERP implementation?

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

2. Lack of Top Management Commitment (Management being involved but not

3. Inadequate Requirements Definition (current processes are not adequately

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

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

*Questions excerpted from ITToolBox.com*

Disclaimer: Contents are not reviewed for correctness and are not endorsed or recommended by PeopleSoft-Planet.com.

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