04 Jan
Common ERP Failures of the Last Three Decades (yep, they’re still relevant)
Enterprise resource planning (ERP) systems have become a priority for most businesses. 53% of companies believe ERP is one of the priority sectors for investments. However, nearly 50% of ERP implementations fail the first time around.
ERP failure costs could run into thousands of dollars. So, you would not want to risk failing in implementation.
The good news is, they’re avoidable. Today, we’ll look at the common ERP failures of the last three decades so you can avoid them.
1. Lack of Adequate Resources
Most organizations don’t have a robust understanding of the internal and external resources required for successful ERP implementation. Internal resources include the timeline on the commitment required from key employees using the ERP, such as those in finance, human resources, and accounting. External resources include consultants and contractors that will help with the implementation and training.
2. Lack of Accountability
Making timely, high-quality decisions is crucial for successful ERP implementation. Late or poor decisions can significantly lower the chances of success. Most of the decisions should be taken at the team level. Waiting for executives for approval will delay the implementation process.
3. Poor Implementation Strategy
When implementing ERP, it is essential to keep the short-term and long-term goals of the organization. Lack of clear strategy on the problems you want to solve with the ERP will negatively affect the outcome.
Conclusion
When implementing ERP, make sure you have the necessary resources, proper implementation strategy, and a team to make the most decisions. Also, ensure you choose a consultant who is skilled and experienced in implementing ERP in your industry.
ERP failure costs could run into thousands of dollars. So, you would not want to risk failing in implementation.
The good news is, they’re avoidable. Today, we’ll look at the common ERP failures of the last three decades so you can avoid them.
1. Lack of Adequate Resources
Most organizations don’t have a robust understanding of the internal and external resources required for successful ERP implementation. Internal resources include the timeline on the commitment required from key employees using the ERP, such as those in finance, human resources, and accounting. External resources include consultants and contractors that will help with the implementation and training.
2. Lack of Accountability
Making timely, high-quality decisions is crucial for successful ERP implementation. Late or poor decisions can significantly lower the chances of success. Most of the decisions should be taken at the team level. Waiting for executives for approval will delay the implementation process.
3. Poor Implementation Strategy
When implementing ERP, it is essential to keep the short-term and long-term goals of the organization. Lack of clear strategy on the problems you want to solve with the ERP will negatively affect the outcome.
Conclusion
When implementing ERP, make sure you have the necessary resources, proper implementation strategy, and a team to make the most decisions. Also, ensure you choose a consultant who is skilled and experienced in implementing ERP in your industry.
