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What is the #1 reason why ERP projects fail?
What are common reasons that ERP implementations fail? What do these failures mean to a business?
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3 Answers
A buyer would say: because the vendor didn't sell me the right solution to fit my business environment.
A vendor would say: because the buyer didn't properly identify his/her requirements.
I think the truth lies somewhere in between. A savvy buyer should make every effort to cover all the bases requirement-wise (from integration reqs, functionality needs, budgetary limitations, long term service agreements, company culture, learning curve, etc, etc, etc.) But, that being said, I also believe it is a vendor's role to assist buyers in pointing out requirements they may have missed. A rep should leverage his/her experience with past implementations by identifying holes in a prospect's list of requirements. 'I've seen businesses like yours in the past who have made great use of feature X; perhaps you all should consider this capability.' for example. In the same vein here, I believe vendors should always provide case studies to prospects. Prospects can decide whether these references are too biased, but particularly if the case is in a similar industry, these can be very helpful in identifying requirements a buyer who is new to the process (and/ or technology) may have missed.
Good question! Good luck!
If there is a scientific decision taken on the ERP requirements and selection, it is nearly impossible that the implementation fails.
I have seen that there are certain managers who thinks they understands everything and takes decisions based on their knowledge. If this kind of decision is taken then of course there is no question the success of the ERP depends on the luck of the person.
Additionally, there are vendors who oversell their ERP. Having said that, its really the responsibility of the buyer to safe-guard himself.
By Scientific decision, I mean that the decision is taken after an appropriate analysis of the entire list of requirement, although broad-based and analyzed with the vendors on the fitment.
The Gap analysis of the existing situation with respect to the projected requirements (underline - projected and not the existing requirements) need to be mapped with the ERP solutions.
Regards,
Velan
The number 1 reason ERP projects fail....because they were started. With such a high percentage of failure (see Panorama Consulting's website for details), it is a wonder anyone even starts these projects anymore.
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