AVOIDING ERP FAILURE FACTORS
INCREASING COMPLEXITY OF ERP APPLICATIONS
The ERP application portfolio is becoming increasingly complex, driving the need for businesses to rethink their application integration strategies. Without addressing the integration concerns in a strategic manner, cost and complexity will begin to spiral out of control and any benefit will be quickly eroded. It is estimated that more than half of all ERP projects globally fail to meet their full objectives. Sometimes the technology is to blame, but most often, it is a question of human factors.
THE HUMAN FACTORS
Too often, the root cause of the failure of an ERP project to meet expectations is related to flaws in leadership, planning or project management. Topping the list is the tendency of some companies to see the ERP implementation purely as an IT project. This doesn’t make sense when you consider that it touches nearly every single aspect of the business.
Another major factor is the lack of support from top management, which is critical for any kind of big change. When you consider the business processes that will change, and the roles to be redefined in each department when ERP is implemented, it becomes clear just how big a change it will be. This also makes finding the right team members and selecting a project leader with sufficient authority and day-to-day involvement a crucial part of a successful implementation.
ASK THE RIGHT QUESTIONS
The key to avoiding these pitfalls is to start out with a capable team and a solid strategy, and to ask the right questions during the selection phase so that you know what to expect during the implementation.
The best way to get well-informed, and quickly? Plan a visit to our ERP HEADtoHEAD™ event in Utrecht on June 18-19!
This event offers a unique opportunity to meet, compare and experience leading ERP vendors and their products. So how about gaining knowledge on ERP systems that might otherwise take months of planning and meetings to achieve? Compare the leading ERP products against defined scripts, not a series of generic sales presentations. This explains the success of the event, because it is all about one thing: efficiency!