This is where ERP projects fail - and how to do it differently.
6 Dec

Why ERP projects fail - and how to do it differently

On ERP project is always an opportunity for a company. But also a risk. As providers and consultants, we naturally try to make the course of our ERP projects as predictable as possible and thus avoid mistakes. But this is not possible in every case. Because, as we have often discussed here, there are always two parties involved in a successful outcome: us and the company.


Both sides can be responsible for the "failure" of the ERP project - often for the same reasons.

Versino Financial Suite for SAP Business One Finance

Here are the most common hurdles for ERP projects:

1.process rivalry

Depending on the size of the company, it is organised into departments. But even in smaller companies, each employee has their own understanding of their role. It is not uncommon for differences to arise from these positions. In the context of an ERP project, this is particularly important for the restructuring of the processes relevant. This is necessary in order to achieve significant success with a new system. However, many employees often find it difficult to think beyond the boundaries of their own department or function. On the one hand, this is bad, as we are dependent on them to identify the relevant processes in the first place, and on the other hand, those who feel misunderstood will always put obstacles in the way of the project. The only way to resolve this situation is to try to make the project as transparent as possible from the outset, including in the planning stage. The role of the employees should be communicated openly and clearly

2. confidant

The second hurdle for ERP projects is largely a result of the first. If the ERP project and the objectives of the new implementation are not communicated openly enough, motivated employees will often focus on the wrong points. If the project is driven forward in the wrong places, this will not help either. It is therefore important to train the employees involved in the project in ERP software at an early stage. It is important to train all employees sooner or later, as they will ultimately be working with it and the success of the implementation is therefore directly dependent on them.

4. right to a say

This hurdle is also directly related to the others. After all, the disadvantage of "involving everyone" is that everyone can, may or wants to have a say. If this is part of the company's good behaviour anyway, it is highly commendable, but it can be a hindrance to effective Project planning problems. It is therefore important to appoint project managers who are understood and accepted as such by everyone. You can also try to clearly communicate the general objectives of the project or make them the objectives of everyone involved. This is also important, as many companies in ERP chaos tend to leave the decisions to the project managers. ERP providers or consultants. However, they can never have sufficient insight into the company in question. A clear positioning of the company is therefore important.

4. target focus

The objectives just mentioned are already determined during project planning. This already involves a lot of analysing. Constructive advice from responsible employees can help here on the one hand. On the other hand, it is important to plan with sufficient precision. This takes time. The company management should therefore ensure that the employees involved have sufficient resources to be able to fulfil all their tasks. An imprecise or unclear definition of objectives can significantly delay ERP projects.

5. system error

For many processes, the standard application in the ERP system. However, not every company with its own in-house processes can be squeezed into this mould. Good software can be expanded here - often through add-ons, as with SAP Business One. A proper process analysis is also essential here. If the ERP system turns out to be wrong in retrospect, this means a lot of time and money for the company to adapt the system sufficiently. In the worst case, there is no improvement to the existing processes at all or even leads to an isolated software solution. This can be avoided by clearly formulating the processes and requirements, for which the responsible employees are needed.

6. time management

Planning is half the battle. This is especially true for ERP projects. Especially the factor Time plays a major role. As employees - especially the project managers and Key user during the project phase. Testing and introducing the new processes can also disrupt the company's usual workflow. Good time management is therefore essential. For each step (capture, analysisplanning, implementation, tests, etc.) should therefore be scheduled with a sufficient buffer so that time does not become a stumbling block for the ERP project.

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