Why Does ERP Fail?
IT GuidePoint Corporation: 5-Star Rated Independent ERP, BI, and AI automation consulting services.
We believe that understanding the top reasons behind ERP failure is an important first step in the success of your ERP implementation.
Let’s discuss how we can work together to prevent ERP failure. Our goal is to increase your ROI by streamlining business processes, operational efficiencies, and team communication.
70
percent
It is estimated that 70% of ERP implementations fail. This takes into account everything from cost overruns, not meeting the original go-live date, missing “must-need” business functionality, and low levels of employee engagement.
Top five reasons for ERP failure
Most experts agree that these are the top five reasons for ERP failure:
- Lack of senior executive engagement in the decision-making process during the selection process and in the actual project once it begins.
- A lack of defined business goals, ROI targets, and a definitive statement of what “success looks like” for the initiative.
- Re-implementing your existing business processes – in other words just copying exactly what you have today and expecting better results.
- Inaccurate master data items that “feed information” to your ERP system (this includes pricing, BOM, routings, labor rates, workstations, etc.).
- Lack of discussions, understanding, and pre-planning in the areas of workflows, reports, interfaces to your legacy system and the forms that you utilize at your firm.
