What Causes An Unsuccessful ERP Implementation?
Unsuccessful ERP implementation is something that may happen to any type of company. Enterprise resource planning is used to better organize a company, or organization’s needs. This is done by condensing multiple programs used on their computers, into one single program. The hope is that implementing a program in this way will save the company time, effort, and money. However there are many cases of unsuccessful ERP implementation. One reason behind an unsuccessful ERP implementation involves flexibility issues. Flexibility is an important factor in ERP implementation, and one that many companies do not understand. In the early stages of the project, a company will often devise a time line, or schedule of how long the project will take, from start to finish. While this can be helpful, some companies have been known to go overboard, which leads to an unsuccessful ERP implementation. The problem here is that some companies rigidly stick to that original time line, and refuse to be flexible about any changes. They expect everyone involved, including the firm installing the program to do whatever it takes to complete the project on time. They ignore all outside factors such as a death in the family, or a severe illness and expect that everyone follow their plans. This can lead to an unsuccessful ERP implementation. Another reason behind an unsuccessful ERP implementation is when a company has problems with the installation firm they first hired. As the process can be very expensive, some companies become determined to hire the firm with the lowest bid or estimate for the whole project. They give little thought to how the firm will mesh with their company, which is a big mistake. Take for example the small wholesale company that hires an installation firm known for a quick turnaround of ideas. The wholesale company hopes they will receive one on one attention for every problem, and a fast answer to any questions they may have. On the other hand, the installation firm is devoted to finishing the project as quickly as possible, without any distractions. The firm does not have the time to answer the company’s questions, and the company feels putt off. This contrast of ideas has led to unsuccessful ERP implementations. Unsuccessful ERP implementations are often the result of problems that develop between the company or organization, and the installation firm. An unsuccessful ERP implementation can occur because of issues that arise between the two parties. The firm will send out a consultant who acts as a liaison between the two groups. The consultant is there to answer any questions about the process, and to discover what the company needs, and find solutions to meet those needs. If the consultant and organization have differing ideas, the two sides may butt heads and experience problems with completing the final project. An unsuccessful ERP implementation can arise for a variety of reasons, though the biggest reason typically involves problems with the consulting/installation firm, and the organization. The two sides often have different ideas of what will work, and what will not work which can lead to an unsuccessful ERP implementation.
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