Many companies embark on an ERP project believing they have all the bases covered and their IT people know what they are doing. Internal projects, steering committees and executives champions are all in place and the project proceeds. Very few problems emerge in the early days of projects as it is really a preparation stage of
gathering data, migrating data, training, software configuration, process review and procedures. Somewhere down the line when the nitty gritty of what the software does and how an organisation can use it issues start to arise. Data that is not available in the form required needs to be obtained, unbudgeted for, data is not in an acceptable form and needs to be
changed and cleaned-up, unbudgeted for, training is proving to be inadequate and more is required, unbudgeted for, changes to software and scope creep start to emerge, unbudgeted for and decisions need to be made, that are resisted by departments, are not made, all add to the ERP environment and potential disaster.
Add to these a blow-out in consultant costs, all seemingly legitimate but expensive and you have a recipe for disaster. Thirty five years of experience in integrated MRPII and ERP systems I have seen a repeat of the above over and over and continuing to this day. The amount of money that goes into
these projects, and lost, is staggering to the point organisations can be seriously financially and operationally compromised.
The blame game starts when the costs begin to hurt the organisation. The finger pointing starts in earnest! The vendor misled us, the company didn’t do what they said they would do, management wouldn’t get involved and make decisions, the software doesn’t work, we were not permitted to make process changes, the consultants were incompetent and lied to
us and so on.
These are issues that have been around since the early days of MRPII. Are we really that slow we have learnt nothing? The statistics on failure are there for all to see! As high as 70% of organisations attempting to implement ERP fail to achieve the results expected. Massive cost blow-outs are the norm. Some companies have gone bankrupt attempting to implement ERP.
The solution is really quite simple. Do the work up-front pre-software purchase. Identify the issues that will need to be dealt with and design a model for how the software is to work and test the software through that model. Identify the data required and commence cleanup before you buy software etc.
Look at the 26 steps that must be covered to get it right the first time.
If this were a new technology we could understand teething problems in getting it implemented and working. Could you imagine continuing a space program with a failure rate of 70%? I think not!
With all of the experience we can draw on you would think that that every implementation should be a success.