ERP, which stands for enterprise resource planning is a process used by a number of companies around the world. This system can help a company easily organize their needs, and find new solutions to meet any needs they might have. Though the process has been used to much success by a number of organizations, there are examples of an unsuccessful ERP implementation. These unsuccessful ERP implementations can occur for a variety of reasons, and can happen to any type of company.
The number one reason behind at least 60% of all unsuccessful ERP implementations is a lack of planning. Even the best laid plans have been known to go astray, and this tends to happen more than most people assume. Unsuccessful ERP implementations are often the result of a lack of planning, combined with an unwillingness to be flexible in those laid out plans. Flexibility is often key to creating a great program that will work with the company, and fulfill their needs.
When a project first begins, the company will often create a budget and schedule. They will then stick unflinchingly to these plans, and not make allowances for any problems that may arise. There are a number of problems that can appear over the course of the project, and those that are not flexible with their schedule and budget may find themselves with an unsuccessful ERP implementation.
Consider the budget of an ERP implementation and how being too rigid can lead to an unsuccessful project. In the early stages of the project, a company may set their budget too low, and then refuse to make any changes. Even a smaller ERP project can reach into the $25,000 range, and a company who is unwilling to spend this amount of money should avoid attempting the process at all. It creates far too much pressure on the consultant trying to install the software, and the employees that are trying to keep everything moving smoothly.
Flexibility with scheduling is also a reason why some ERP implementations are successful, and others are unsuccessful. An unsuccessful ERP implementation is often the result of a company that remains rigid and inflexible with their time line or schedule. There are always going to be issues that arise that are out of the company’s control, and these issues are typically not planned for, nor can they be planned for. Consider the programmer who develops a case of mononucleosis and cannot work for three weeks or longer. This will put the project behind schedule. The company that remains slightly flexible in their scheduling can handle this problem effortlessly and avoid an unsuccessful ERP implementation.
There are a number of reasons for an unsuccessful ERP implementation, but the two biggest reasons relate to a rigid stance on scheduling and budget. Those companies that have found the most success are those that are flexible in their planning, and realize that there are unavoidable things that can happen during the course of the project. The key is to keep an open line of communication with the programmer, and ensure that everyone knows they need to be flexible.
Matt D Murren owns and operates http://www.erp-implementation-advisor.com Erp Implementation