Why do some companies have more success with ERP than others?

Answer 1

Early ERP implementation reports indicated that only a low percentage of companiesexperienced a smooth rollout of their new ERP systems and immediately began receivingthe benefits they anticipated. You should put such reports into perspective. All kinds ofsoftware implementations can suffer from delays, cost overruns, and performance problems,not just ERP projects. Such delays have been a major problem for the IS industryEarly ERP implementation reports indicated that only a low percentage of companiesGartner Research recommendsallocating 17 percent of the project’s budget for training. Those companies spendingless than 13 percent on training are three times more likely to have problems. Some companies willingly part with funds for software and new hardware, but don’tproperly budget for employee training. ERP software is complex and can be intimidating atfirstUsually, a bumpy rollout and low ROI are caused by people problems and misguidedexpectations, not computer malfunctions. For example:Some executives blindly hope that new software will cure fundamental businessproblems that are not curable by any software. The root of the problemmay lie in flawed core business processes. Unless the company changes itsbusiness processes, it will just be computerizing a bad way to do business.Some executives and IT managers don’t take enough time for a proper analysisduring the planning and implementation phase.Some executives and IT managers skimp on employee education and training.Some companies do not place the ownership or accountability for the implementationproject on the personnel who will operate the system. This lack ofownership can lead to a situation in which the implementation becomes anIT project rather than a company-wide project.Unless a large project such as an ERP installation is promoted from the topdown, it is doomed to fail. The top executives must be behind the project 100percent for it to be successful.ERP implementation brings a tremendous amount of change for the users. Managersneed to manage that change well so that the implementation goessmoothly.