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What are the reasons for ERP system failure?

ERP solutions are designed for a large audience of companies looking to achieve success by following a template of best business practices. However, the system often fails to achieve its promise because people who are supposed to be the main users of the systems reluctant to change their attitudes.

This leads to costly program modifications to replicate those processes. This, in turn, can result in unnecessary manual tasks and issues of software maintenance, which neutralize the original benefits of the software.

When making an ERP software selection, examine the processes encoded in the software. If you can agree to model your company's best practices based on those processes, you're choosing the right solution. If you can't, continue looking.

Once the ERP system is chosen, it's not uncommon for management to turn the project over to a subordinate to manage the implementation. The problem is that the subordinate, who is usually chosen from the end-user base or IT department, typically isn't given the authority to implement necessary business process changes.

Project management is a discipline, which requires the ability to delve into detail while keeping a perspective on the original business objectives. The project manager needs to have the ability to overcome impasses through a judicious combination of political guile and management direction.

The most successful ERP projects are led by a member of the management team who has actively participated in both the software selection and implementation efforts. When selecting your project manager, choose the one who has the most to gain from the ERP system.