The most common reasons for why ERP is not successfully implemented:
Added 31 Jul 2008
With reference to what has been said above, not many companies have been successful in the past with regard to the implementation of an ERP solution for their unique businesses. This is for the reason that they fail to recognise certain factors which lead to disastrous mistakes occurring. One of the most predominant reasons why these companies fail at the end of the day is as a consequence of unplanned or under planned phases of implementation. An example of improper planning can be given that a company will establish a business process, think it through, and implement it, but all before the selection, purchase, and deployment of the software solution. It is possible that by overlooking a critical stage such as this a company implementation strategy could be lead to its eventual death.
Planning is crucial for the correct implementation of any new business process into the existing strategy of a company. This is for the reason that something bought that is not a good fit for the requirements of a company may cause technical problems. Ignoring the importance of the requirements definition means that you are subtopics the capabilities in the technology in the long run, and by not using the technology as an enabler for the process, your business processes will not be streamlined.
Purely focusing on technology is another hazard for a business as this alone cannot solve a business problem. To elaborate upon this, never abdicate responsibility for the implementation by assuming that all issues have been addressed or even identified by the vendor in believing that technology alone will prevail. Poor implementation can elongate the development cycle with badly defined requirements which result in inadequately defined measures of success.
An ERP project should therefore never be rushed into. Do not jump straight from the requirements definition to the development phase by skipping necessary implementation steps. These steps such as building a solid implementation plan and a solid understanding of what it will take to develop and implement the solution before hand are in the end vital to the success or failure of your ERP project.
Companies can lastly avoid the failure of an ERP solution by training their users. As stated in the information above, users are key to determining the success or failure of an ERP solution and should therefore be delicately treated with care.