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Why Does ERP Fail?

At IT GuidePoint, 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 and increase your ROI by streamlining business processes, operational efficiencies, and increasing collaboration.

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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:

1

Lack of senior executive engagement in the decision-making process during the selection process and in the actual project once it begins.

2

A lack of defined business goals, ROI targets, and a definitive statement of what “success looks like” for the initiative.

3

Re-implementing your existing business processes – in other words just copying exactly what you have today and expecting better results.

4

Inaccurate master data items that “feed information” to your ERP system (this includes pricing, BOM, routings, labor rates, workstations, etc.).

5

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.

When you hire us for intelligent ERP planning, we’ll help you uncover the root source of failure and remediate it before it impacts your business. Schedule an appointment today!