When the application does not deliver the expected value, it is said to be failed. There is various reason why ERP implementation fails, it could be as basic as management reluctance to change. We will look from IT point of view, why do the ERP implementation fails to deliver the expected value. In Global ERP, Partner lack of local business understanding and industry expertise could be common issue for the failure to meet expectation.
Bad Training and coordination between the Implementation team and users.
Usually ERP purchase decision are made by the management as they understand the big picture but the value is not explained to the employees and the actual user find no motivation to use the system.
Reluctance to change – Old employees have built set pattern of working and any change is not welcome. Even after Go-Live they continue using the previous system and none of the system have all the information. During Implementation, there was lack of planning and no proper project methodology was adopted.
Expectation mismatch and motive
Assumption, the customer assumed the vendor understood their requirement and there was no proper documentation of requirement.
As explained in the article 6 -ERP Implementation Cycle (there are number of process that needs to followed) any error/ assumption and lack of clarity will result in delivery and expectation mismatch.
Users fail to learn the application and blame lack of functionality to extract reporting as per management requirement.
Argumentation between vendor and customer can hurt the relationship as ERP purchase is like marriage and does not end with implementation process.
Before Implementation
This phase deals with planning activity any lack of clarity or miscalculation will have adverse effect on successful implementation.
During Implementation
This phase deals with the entire process of implementation, omission of any activity will set stage for failure.
After Implementation
This phase deals with post live, when user start making the entry in the application. Corporate politics also play major role.
FACTS Computer software house provide 30days money back warranty to customers, also exceptionally the company has reverted client money when they foresee lack of clarity and thus they do their part in limiting the probability of failure.