Erp System Implementation Failures

Few people in an organization ever understand how difficult an erp implementation is and how a few key elements can be the difference between erp success and erp failure.

Erp system implementation failures.

Because erp implementations take up so much of a company s resources and are intended to support such a wide range of processes failures can be truly devastating when they do occur. After hershey s suffered an sap erp failure the company was incapable of processing 100 million worth of kiss and jolly rancher orders even though it had most of the inventory in stock. Leaving a system half launched. A good example is icl s failed erp implementation in 2014.

It first tried to squeeze a complex erp implementation project into an unreasonably short. Perhaps one of the best known erp implementation failures occurred at hershey s during the halloween season in 1999. Big name erp failure stories have been widely reported on striking fear into the hearts of businesses looking to implement or upgrade an erp system. 54 of erp systems exceed projected budget targets.

Even before implementation the company is the dilemma whether they really require it or not. The ceo assigned the project to a relatively new person in the cfo s office according to belden. Note that metric 5 usually represents the cause of and erp failure while metric 6 results the ultimate. The human factor.

Due to mishap after mishap involving the company s sap erp crm and supply chain applications the company failed to deliver 100 million dollars worth of hershey kisses during the season resulting in a startling 8 stock dip. Calculating erp implementation costs of top erp systems. Only to be attempted if there is a really good reason and not to soon be repeated. The other reason for the failures of the erp system project is inadequate on the job training during the typical lifespan of the erp system which is 10 to 12 years.

Top 10 reasons for erp implementation failures. The duration is enough to train the majority of the employees in erp technology and implementation ghosh 2012. Listed below are some of the common mistakes that if avoided can greatly improve your probability of success. If erp systems are the nervous system of a company then doing an erp implementation is like brain surgery.

The definitive 7 step methodology. The project cost ballooned from 120 million to more than 500 million. Ultimately the ceo resigned and the entire sap erp implementation was cancelled. The history surrounding the complex and expensive enterprise software market is packed with tales.

Hershey s made a textbook implementation mistake in relation to project timing. Doing it in the first place.