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Implementing Enterprise Resource Planning (ERP) software and projects are no easy tasks. With many moving parts and personnel involved in the mix, the process becomes all the more daunting. To help avoid common pitfalls and offer some considerations, Software Advice, a trusted resource and advisory firm for ERP software buyers, recently conducted an analysis of 22 failed implementation projects and looked into the most common reasons for failure in this e-book.
The e-book notes that ERP implementation failure can often be attributed when one or more of the following key goals are not met:
- On-time implementation
- On- or under-budget implementation costs
- Minimal disruption to business operations
- Improved organizational efficiency
- Reduced operating costs
- Increased sales or revenue
One main takeaway from these is that “ERP implementation rarely fails because of the software itself,” as only 18 percent of the failures included in the study were due to buggy software.
To avoid implementation failure, it’s best if the organization take the time to do due diligence and fully research the ERP system, have personnel, particularly consultants completely understand the client’s needs and have a trusted vendor give you a realistic view of the system’s capabilities.