Why Half of ERP Implementations Fail?

1

1

2

3

4

5

6

Lack of proper staff training

Lack of commitment from the TOP Management

Lack of resources in the organization

Internal resistance by employees to work on a new system

When a Bottom Up approach is used

When clients do not plan the future expenses

If the staff of the organization is not properly trained by the ERP Implementation

Team even the best of ERPs will fail.

The TOP Management has to ask all the different departments to work on their

respective modules and provide them reports and data in computerized format.

ERPs need proper server, network architecture, security from viruses, Internet

facility and a dedicated ERP Manager of the organization.

The management has to motivate the staff to work into a new and hi-tech

environment as that is the demand of future. Once the staff comes live on the ERP

then they too will appreciate the fast working with the EPR as it will make their

work very easy and error free.

The ERPs are to be viewed as a TOP Management Priority to keep all the

departments in check and manage them in a centralized view.

As the organizations grow the requirements of the ERP grows with time. Clients

have to understand the charges of AMC, Customizations, additional onsite

support after implementation etc. while purchasing the ERP to avoid confusions

and confrontations later.

2

-By Karan Garg, Chief ERP Architect (IFW Techno Creations Pvt. Ltd.)

karan@ifwworld.com, 0 93144 09691www.facebook.com/ifwerp

7

8

Inability to provide timely customizations and enhancements in the ERP by Vendor

Lack of proper usage of some department

All organizations are working under the rules and guidelines of the Government or some parent body,

these bodies changes the rules and guidelines for the organizations/businesses and so these have to be

incorporated into the ERP too to make the organization ready for that change.

ERP Implementation is a race where everyone's legs are tied up with each other. If one fails that creates

problems for all. ERP brings centralization of all departments so that information can flow between

departments easily. If some of the department(s) does not work properly it becomes problem for the

others. It's the responsibility of the ERP Manager to make sure all departments are working in tandem

with each other on the ERP.

9

10

Wrong selection of ERPIf the organization is an University they should not buy a

solution made for a College or School. The client and vendor

both have to understand the fisiablity of the ERP in the

organization before the deal.

Rome was not built in a DayThe companies developing and implementing ERP solutions

have proper idea of how ERP works. Many organizations feel

that they themselves can make ERP Solutions by deploying a

team of developers. It's not impossible but such

organizations make solutions which are very unique to their

own style & comfort of working which hampers the

standardization of processes. In such cases most of the ERP

fails or what actually happens is that only few modules are

made live, most of the modules are not made because of

their complications and the organization gets in a mode

where neither they are on a complete ERP nor they are

without automation. ERP developing vendors make sure

that all processes are on standard format as per the industry

and are updated time to time as required.