1. 1
Why Half of ERP Implementations Fail?
1 Lack of proper staff training
If the staff of the organization is not properly trained by the ERP Implementation
Team even the best of ERPs will fail.
2 Lack of commitment from the TOP Management
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.
3 Lack of resources in the organization
ERPs need proper server, network architecture, security from viruses, Internet
facility and a dedicated ERP Manager of the organization.
4 Internal resistance by employees to work on a new system
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.
5 When a Bottom Up approach is used
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.
6 When clients do not plan the future expenses
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. 2
7 Inability to provide timely customizations and enhancements in the ERP by Vendor
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.
8 Lack of proper usage of some department
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 Wrong selection of ERP
If 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.
10 Rome was not built in a Day
The 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.
-By Karan Garg, Chief ERP Architect
(IFW Techno Creations Pvt. Ltd.)
karan@ifwworld.com, 0 93144 09691
www.facebook.com/ifwerp
