As a business consultant, I am often asked to review a failed ERP implementation and determine the circumstances that led to its failure. Frequently and sadly, company management will conclude that the software doesn’t work or it is too complex to implement in their unique environment. Management further compounds the failure by claiming that the wrong ERP system was chosen, and if they had the “right” software package they could recapture their initiative and achieve their original objectives.
Yet, my experience is that the software itself is rarely the source of failure. In fact, selecting the presumed “right” software package will most likely result in a second failure – this one even more costly than the first.
The real root of all evil – people, not the software
ERP packages, even those that are industry specific, are designed for a large audience of companies looking to achieve success by following a template of best business practices. However, software often fails to achieve its promise due to the reluctance to change by people who have a vested interest in existing processes. This leads to costly program modifications to replicate those processes. This, in turn, can result in unnecessary manual tasks and issues of software maintenance, which neutralize the original benefits of the software.
Next time, I will share with you the 2nd deadliest sin in ERP implementation.
About the author:
Stephen Chen is a CPA, an executive-level Sage ERP consultant with more than 25 years of information systems and technology management experience in manufacturing, distribution, finance, planning, and process improvement. He has been responsible for the implementation of IT solutions in both domestic and multi-national companies, with emphasis on technology infrastructure, integration of enterprise-wide business solutions, and applications development.
