Why and How Could Your ERP Implementation Fail?

How do you pinpoint when ERP implementation in your company is failing? Why does it fail in the first place? One of the major reasons ERP fails is because it’s failing before it’s even started. Companies don’t ask themselves if a large ERP is a good plan before putting it in place.

Due to a lack of proper foresight and no sense of direction, failure could be imminent. Even sometimes with a plan in place, it may not be well thought out enough, or prepared for any eventuality. Under-estimating resources, unrealistic expectations, poor user interface, or lack of testing are some contributing factors, as well. Not having a contingency plan or refusing to customize is often an early sign that it will fail. So is lack of frequently reviewing the ERP and plan associated with running it.

Or maybe the person managing the ERP is not qualified or experienced enough to be doing so. If your company cannot afford to train an employee to take on such an important task, it’s best not to implement the ERP in the first place. Unqualified and untrained ERP management is a major sign of imminent failure.

And most companies don’t even stop to ask themselves if they actually need ERP before they put time, money, and resources into starting and running it. This could by far be one of the easiest ways to prevent ERP failure, is not not begin it in the first place.