Avoiding ERP Failures: The Importance of successful process change
Depending on which source you consult, from The Gartner Group to ZDNet, it is estimated that the failure rate for ERP Implementations is greater than 50%. So why does this happen and how can it be avoided?
Let's take a step back first and think about why you might need a new solution. In other words, make sure you understand what your needs are. Don't simply hire a consulting firm to tell you what's wrong and what they recommend as a solution. Many such firms simply lead you down a predetermined road to a solution that they know is profitable for them to sell and implement. Instead, spend time with your team and come up with two lists: what are you doing right and what is not working for you.
The saying, "If it's not broken don't fix it" should be well considered in this case. Many ERP solutions and their vendors want you to embrace a complete solution: ERP, CRM, Supply Chain, e-Commerce, and more. If you are a successful company, don't crash the bus. Maybe you can benefit from a complete overhaul. Maybe you even need it. However, once you come up with the key areas that require change, you should prioritize them. You cannot do everything in one move. Like chess, you have to think ahead but be patient and move deliberately.
What is the right ERP solution for you? Arriving at an answer is a process, and not a simple one for sure. Meet with professional ERP solution providers, best if they are referrals from people you know and trust. You should not be looking at their solutions as much as paying attention to how they learn about your company, how you conduct business, ...
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