Saturday, July 25, 2009

Reasons for failures of ERP Implementation Part

There are various reasons for failure of ERP implementation . This blog discusses some of them for your understanding:

1. Success is not defined properly.

The success of the project is not defined properly. The success has to be defined in such a way that its measurable and achievable. Some example can be mentioned as given below:

a. Completion of first 25 Purchase order in the new system
b. Inventory match between the live erp system and physical inventory
c. Trial Balance match on the first month after going live on ERP system financials
d. Completion of first 10 sales invoice from the new ERP System

These predefined measureable statements would be the key for defining the success fo the erp system.

2. Transparent Communication by the stakeholders

Stakeholders are not communicated properly on the problems and decisions. Decisions which are not taken timely will create delays in implemenation. This has

to be taken care in both vendor and customer side. Example of such non-communication are as given below:
a. Lacking certain functionality in the ERP
b. Non-availability of report formats to the Report development team
c. Not revealing certain inputs for completion of the accounts mapping.
d. Decision on process from the Head of the departments

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