Gkeysys

Why ERP Projects Fails to Deliver ROI?

In the world of enterprise resource planning projects, mistakes, setbacks, additional cost and failure are commonplace - but so is success, greater efficiencies and huge rewards. According to Gartner, 55-75% of ERP projects either fail or don't meet their intended objectives.

Fallure is Common: 30-70% of projects are late, over-budget, or don't meet expectations.

Estimation of time

Establish early on who is responsible for what level of decision making. Late, ambiguous, or poor quality decisions can doom your project to ERP failure. Most of the decisions to be made throughout your ERP implementation should be made at the team level. Waiting for executive management will needlessly delay the implementation process and the best decision will come from people on the team who are already users of the systems and familiar with the processes and what changes will improve the situation.

Product Acceptance

Embarking on an ERP project can be tough! You have to assemble large internal and external teams, sit through endless meetings, battle setbacks and manage deadlines and much more to avoid implementation failure. But don’t forget that once the system is perfectly configured, you need to actually train people to use it. You also need to generate internal excitement about the project to encourage your employees to embrace the change. Otherwise, they’ll quickly start to tell others within the business that it doesn’t work properly as you roll out. Before you know it, the project and you will be labelled a failure.

Scheduling of Resources

Despite the impressive demos, snazzy dashboards and marketing videos - the ERP solution didn’t quite live up to what was sold by the vendor when it came to project kick off and implementation. Sometimes ERP software is oversold and demos can be full of smoke and mirrors, suggesting that the technology is capable of more than it can deliver. However, it isn't always the fault of the ERP vendor. Sometimes businesses fail to capture, document and communicate their business requirements to their ERP vendor & partner. This is often due to poor planning in the early stages of the ERP evaluation & comparison process. A lot of [consulting firms] will put in people through "the academy", where they take a training course and get set sent straight out to the client. That won't work.