Are ERP Implementations Doomed to Fail?

You have probably read something like the following:

“A recent (2021) survey found that more than half of organizations deploying ERP strategies to modernize their legacy technology experienced failure.”

“Research has found out that globally from 55% up to 75% of all ERP projects fail.”

But have you ever wondered whether?

  • The authority is exaggerating the facts to attract new clients
  • Whether the facts are accurate
  • Whether the organizations included in the research are very large companies with more risk
  • What was the basis for failure?

Our experience is that ERP selection and implementation projects are not doomed to failure. But first how do you measure success or failure? We think that it should be measured based on whether the goal objectives have been met. Ask this question – What must you do well in order to be successful strategically (defined as critical success factors)? Then ask how to measure attainment of critical success factors. What are these KPIs today and what are the goal KPIs? Success should largely be dependent on achieving the goal KPIs. Being on time and budget is achievable but it does require a clear definition of scope and implementation roles and responsibilities, as well as project management (and sometimes change management). The vendors don’t have the objective of going over the budget as it looks bad on them. They want/need happy customers. The failure of being on time and budget is usually the fault of their clients, who did not do a thorough job in the selection process and did not follow basic project management principles.

Leave a Reply

Your email address will not be published. Required fields are marked *

Name *