At Pelorus Technology, we are committed to addressing why ERP implementations typically fail and then reversing that trend. If you are contemplating a new or updated
We set out to find why so many ERP implementations are unsuccessful. We figure there must be some common denominators that were tripping up software partners and sabotaging their projects. Taking our search to Google, we learned some interesting facts.
First, we wondered about the critical factors in all implementation projects. And we were surprised to find that there was no consensus. Various vendors identified between 4 and 12 elements that they consider essential.
We concluded that rampant ERP implementation failure must be due to an inability to agree on crucial implementation factors or best practices. But strangely, we also found that most approaches were similar, so it looked like the process itself was faulty.
If you are contemplating an ERP implementation, you must come to grips with the fact that without a proven methodology with a new and different approach, your implementation is likely to fail.
What ERP success looks like
Some might define an ERP implementation project as successful if it meets the following criteria:
- On-time, on budget, and supplying the minimum critical business processes and reporting needs.
Checking off those three points might look like success, but there is more to consider.
Failure may come later in a number of ways. It may come emphatically, bringing down the entire company. Or it may necessitate a completely new project with another solution or another implementation team. Or, at the very least, the failure may happen over time after draining valuable resources and organizational morale. You may find in the long run that have less than optimal functionality with you increased costs. You may also find yourself with a team that fails to adopt the new technology.
Since most ERP implementations cannot claim genuine success, it is time for a new approach and new ideas.
In a series of posts to follow, we will examine the standard ERP implementation approach that contributes to eventual failure. We’ll talk about how fresh ideas and new strategies can reverse the trend of failed implementation projects. We’ll discuss the depressing “shadow ERP” when users have to resort to manual workarounds, customizations, and additional software tools. We’ll examine the costs in time and resources of those Shadow ERP components and when they begin to tip the scale toward failure. And in the final post, we’ll talk about how to get out of the ERP failure trap and escape the shadows.
Stay tuned for our Preventing ERP Failure series: Implementations Reimagined.
If you are in the process of selecting a new ERP solution or in the midst of a challenged or failing ERP implementation,
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