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Causes of ERP Failure and Prevention

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Causes of ERP Software Failure and Prevention

We can prevent ERP failures if we can identify the route causes of the failures regardless the companies and industries that implement them. ERP system is an approach that can make marvels for your organization. It is integrated software which automates the daily activities. But it also needs a streamlined approach. To get the best out of it, you will have to give your finest efforts. If software system is not streamlined correctly, it can create blunders. There are several causes of ERP failures like software structure not matched with your organization, hardware is not suitable, user rejection, complicated business processes. You must take care off following reasons while implementing software, else failures can happen.

Software Selection and Planning

At the time of ERP selection and planning to start implementation top management should be very careful. Choosing wrong product is the primary cause of ERP failure. Each company has a different business environment. Your data requirements may be different and so the level of customization your need may also be different. Software selection should be based on software quality, software developed for your vertical, implemented in similar size and type of company. Before starting the project proper blue print should be made with the help of industry expert and consultants. This will lead to successful implementation.

Vendor Selection

If you vendor is not enough to understand your business process and people, ERP project will be fail. Software vendor should not be new in the market and have a good team of industry experts. Involvement of vendor should be from their top management.

User Rejection

User change resist, if ERP software is complex and your have not arranged proper training step by step, user will fail to understand the new system and this will impact on implementation.

Software Structure

ERP system architecture should be industry specific and user friendly. If software architecture is not matching the baseline of your industry, customization will be more and project will go long. More customizations are one of the biggest reasons of ERP implementation failure.

Business Process

If your business process complicated you have to select ERP for industry specific. You can choose software which is implemented in similar type of organization. All ERP software are not flexible, be careful about customization possibility and cost of customization.

 Read Related Articles

Implementation Obstacle and Solutions
ERP Project Risk Management
Success Factors of Implementation
Project Management for Successful Implementation

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