Why ERP projects fail
The evolution of ERPs globally have been at a significant rate in response to the demands of businesses to successfully compete in today’s world of increasing consumer demands for the best software to match international standards and incorporate best practices in the work place.
ERP implementation seeks to integrate people, processes and technology. Over the years focus has been on the development of ERP software to combat the challenges faced by business/organizations to outmoded processes of organizational management and to build the capacity of employees to enable them efficiently perform to meet set goals and objectives.
However, the implementation of ERP projects have not been necessarily successful irrespective of the sophisticated nature of the software and this can be attributed to the following;
People and Process Management
Service providers or vendors have focused on the deployment of the technology rather than the people and processes. The success of the project depends largely on the identification of the barriers that keep end users from accessing and using the ERP software to develop new digital competencies.
Inadequate Communication
Insufficient communication to staff across the organisation after the final decision to introduce the software may cause an ERP project to fail. Employees must be committed to the project and understand the value addition in terms of skills enhancement for improved performance in achieving the business objectives. The role of change leaders, business owners, stakeholder and partners are critical in this aspect.
Change Management
Inability to recognize change management as a crucial part of the implementation process would lead to an unsuccessful project. It is therefore important to make provision for the right approach to be used in addressing this during the project implementation.
Training
Investment in training is key to the success of any ERP project implementation. A well-structured training schedule with the requisite resources and materials will ensure users appreciate and understand the use of the software.