Companies intend to implement ERP systems (Enterprise Resource Planning) to Automate functional operations. It is not wise to think that when an ERP systems is implemented, it will work successfully as desired. There are a number of reasons behind it as to why ERP systems fail very often after implementation. I think every company, before the implementation of new system or replacing the old system, must think several points to avoid such failures.
An ERP systems i.e SAP/Oracle JD Edwards etc. may fail due to a number of reasons. Reasons For ERP Implementation Failure are discussed below.
Reasons For ERP Implementation Failure :
1. “As-is” / Current Process Documentation: If the company or its process owner fails to document the all aspects of the existing system or overlooks any of the aspect that is related to other process or sub-process, it is probable that ERP system will get stumbled at the very first day of going Live.
2. “To-be” process documentation or blue print: If the implementing organization/company fails to document or design solutions with respect to the “As-is” process, it will take more customization efforts which will ultimately award the delay in implementation time. Missing in any aspect of transactions may lead to the failure to succeed.
3. Key Process Owner: While implementation of the SAP/Oracle JD Edwards etc. , a group of persons will be full time engaged with the implementation effort. Every key person of a particular module must be well aware of his own operational process so that he understands the integration requirements with other modules or sub-modules. If the person or a group of persons is not selected wisely, it is probable that some critical aspects will be overlooked; which will ensure the failure of the ERP systems.
4. End-user selection: End-users must be well trained of handling ERP systems. Proper input in a particular field must be ensured to derive accurate information to have been the ERP system successful.
5. Making skeleton: If ERP systems are not designed to meet the requirements for years to come, it is probable to fail after few months of implementation. Skeleton is the shape how an ERP system should look alike, what integration aspects must cover, what are the information the management will ask for etc. These must be analyzed before implementing the ERP systems. You can not make a dinosaur in the skeleton of a lizard.
6. Flexible and Scalable: System must be flexible and scalable so that it can meet the future demand with respect to expansion, contraction or changing way of operations.
Mere SAP/Oracle training will not be sufficient to handle the system if it is not properly designed and implemented.
