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Why ERP Projects Fail?
Enterprise resource planning (ERP) is a sort of software that businesses use
to handle day-to-day operations like accounting, procurement, project
management, risk management, compliance, and supply operations. The
major benefit of ERP is that it provides complete visibility into the core
business processes. ERP systems optimize through superior resource
tracking and reporting, database management and data sharing, and result in
an overall improved information system.
One in every four ERP implementations fails due to poor planning and
refusing to change existing business practices. Furthermore, such failures
have an impact on the chief level management’s willingness to approve such
projects. These are the issues that most businesses face and are the prime
reasons why ERP implementations fail.
Reason for failing ERP project in the UAE
1. Unavailability of skilled personnel
Most businesses underestimate the resources necessary for ERP
deployment. Most organizations should have a thorough awareness of the
project’s internal and external resources. For internal resources, the
organization should have a solid timeline on the commitment required from
their top resources that will be using ERP, usually those in Finance,
Accounting, or Human resource department. For external resources, the
organization should find out the consultants and contractors, and the duration,
skills, and infrastructure required for the successful implementation of the
system.
2. Reluctant to Change
Sometimes ERP systems will be used for a long time in a company. A lot of
things can go wrong while implementing ERP in an organization. Most
employees will have had one or two instances of ERP implementation in their
careers. While implementing ERP in your company, both internal and external
managers should have prior experience with the process. Another issue we
usually see is the reluctance of certain employees to change from the existing
processes. They will be so familiar with the current system that it will be
difficult for them to accept a new system suddenly.
3. Able Project Owner
The success or failure of the implementation of an ERP project entirely
depends on the project owner or Manager from your side. Project managers
have more responsibilities. The project managers should have the ability to
get into the details of implementation while keeping their perspective on
overall business goals. Most successful ERP implementations are led by
project managers that actively participate in the selection and implementation
both.
4. Strategy without proper vision
A successful implementation should be done in a systematic manner. The
implementation strategy should be in line, it should work with the overall goal
and targets of the company. Sometimes lack of a clear strategy leads to
challenges in implementation. In a business process, a good strategy is very
important, and more importantly, should be crystal clear in the approach so
much so that most of the issues and challenges faced by the company and its
employees must be addressed through the strategy.
Your business can expand through ERP software
Enterprise Resource Planning software enables businesses to streamline and
automate their processes, resulting in leaner, more accurate, and more
efficient business operations.
Enterprise Business Consultants in UAE
Our certified ERP consultants can aid you in finalizing the vendor and the
software that best fits your current business processes and align with your
future goals as well. We help your build a strong and long-lasting relationship
with your vendor partner for years to come. We will help train your employees
and make them aware of the advantages and ease of work while using the
new system. Apart from going through a lot of processes which include cross-
checking the vendor’s presence and expertise in handling your industry’s
problems and needs, their technology direction & support system, and the
overall cost of ownership. Based on all these factors, we can guide you
through the vendor evaluation and ERP product selection process.
Get Free Consultation
Why ERP Projects Fail?
HLB HAMT
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com

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Why ERP Projects Fail.pdf

  • 1. Why ERP Projects Fail? Enterprise resource planning (ERP) is a sort of software that businesses use to handle day-to-day operations like accounting, procurement, project management, risk management, compliance, and supply operations. The major benefit of ERP is that it provides complete visibility into the core business processes. ERP systems optimize through superior resource tracking and reporting, database management and data sharing, and result in an overall improved information system. One in every four ERP implementations fails due to poor planning and refusing to change existing business practices. Furthermore, such failures have an impact on the chief level management’s willingness to approve such projects. These are the issues that most businesses face and are the prime reasons why ERP implementations fail. Reason for failing ERP project in the UAE 1. Unavailability of skilled personnel Most businesses underestimate the resources necessary for ERP deployment. Most organizations should have a thorough awareness of the project’s internal and external resources. For internal resources, the organization should have a solid timeline on the commitment required from their top resources that will be using ERP, usually those in Finance, Accounting, or Human resource department. For external resources, the organization should find out the consultants and contractors, and the duration, skills, and infrastructure required for the successful implementation of the system. 2. Reluctant to Change
  • 2. Sometimes ERP systems will be used for a long time in a company. A lot of things can go wrong while implementing ERP in an organization. Most employees will have had one or two instances of ERP implementation in their careers. While implementing ERP in your company, both internal and external managers should have prior experience with the process. Another issue we usually see is the reluctance of certain employees to change from the existing processes. They will be so familiar with the current system that it will be difficult for them to accept a new system suddenly. 3. Able Project Owner The success or failure of the implementation of an ERP project entirely depends on the project owner or Manager from your side. Project managers have more responsibilities. The project managers should have the ability to get into the details of implementation while keeping their perspective on overall business goals. Most successful ERP implementations are led by project managers that actively participate in the selection and implementation both. 4. Strategy without proper vision A successful implementation should be done in a systematic manner. The implementation strategy should be in line, it should work with the overall goal and targets of the company. Sometimes lack of a clear strategy leads to challenges in implementation. In a business process, a good strategy is very important, and more importantly, should be crystal clear in the approach so much so that most of the issues and challenges faced by the company and its employees must be addressed through the strategy.
  • 3. Your business can expand through ERP software Enterprise Resource Planning software enables businesses to streamline and automate their processes, resulting in leaner, more accurate, and more efficient business operations. Enterprise Business Consultants in UAE Our certified ERP consultants can aid you in finalizing the vendor and the software that best fits your current business processes and align with your future goals as well. We help your build a strong and long-lasting relationship with your vendor partner for years to come. We will help train your employees and make them aware of the advantages and ease of work while using the new system. Apart from going through a lot of processes which include cross- checking the vendor’s presence and expertise in handling your industry’s problems and needs, their technology direction & support system, and the overall cost of ownership. Based on all these factors, we can guide you through the vendor evaluation and ERP product selection process.
  • 4. Get Free Consultation Why ERP Projects Fail? HLB HAMT Level 18, City Tower-2, Sheikh Zayed Road PO Box 32665 Dubai – United Arab Emirates. Tel: +971 4 327 7775 E-mail: dubai@hlbhamt.com www.hlbhamt.com