Causes of ERP Failures

ERP is the acronym of Enterprise Resource Planning. Multi-module ERP software integrates business activities across various functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP has transformed the way multi-billion dollar corporations conduct their businesses. Successful implementation of ERP systems could save tens of millions of dollars and increase employee satisfactions, customer satisfactions and sustain competitive advantages in every-changing marketplace. Corporate executives are often perplexed by the stories that how reputable corporations (Hershey Foods, etc.) have failed miserably and lost ten of millions of dollars in their ERP endures.

The failures of ERP projects are preventable if we can identify the common causes of the failures regardless the companies and industries that implement them.

An ERP system is the combination of ERP software, the business processes that the ERP transforms, the users of the ERP system, and the computer systems that run the ERP applications. The failures of a ERP project is often the result of the failures in one or more of those four components. The failures in computer systems (hardware and operating systems) are much easier to identify and to fix, so we'll examine the failures in software implementation, business process and user acceptance.

Failure of ERP Software Implementation

Module-based ERP software is the core of ERP systems. Most ERP projects involve significant amount of customizations. Packaged ERP software modules have built-in functionality that work in a standard and simplified enterprise environment. However, every organization is unique in data requirements and business processes. It is the customizations that transform packaged ERP software into ERP software that meets organizations' individual business processes and operations. Long and expensive customization efforts often result the pass of release deadline and budget overrun. Customizations may make the software more fragile and harder to maintain when it finally goes to production. Major changes may be required in the later stage of the implementation as a result of incomplete requirements and power struggles within organizations

The integration of ERP systems(http://www.sysoptima.com/erp/erp_integration.php) with the IT infrastructures also challenges ERP project teams. The use of appropriate implementation methodologies can often make or break a ERP project. (http://www.sysoptima.com/erp/implementation_methodologies.php)

Failure of Accommodating Evolution of Business Processes

According to Anthony, R. A, business processes fall into three levels - strategic planning, management control and operational control. Organizations continuously realign their business processes of all levels in response to the ever-changing market environment. Many ERP systems aren't flexible enough to accommodate evolution of business processes. many ERP system need a major overhaul in every a couple of years.

Failure of User Acceptance

The users of ERP systems are employees of the organizations at all levels. ERP projects usually modify the company's business processes which create extra workload for employees who use them initially. They may not think that the workflow embedded in the software are better than the ones they currently use. Ongoing end-user involvement and training may ease the difficult in organization's adaptation of new systems and new business processes.

Bruce Zhang has over 10 years experiences in developing and implementing ecommerce and ebusiness systems in various industries. He operates a website http://www.sysoptima.com that automatically aggregates the news and new articles in e-business (ERP, CRM, Supply Chain Management and Knowledge Management) from over 50 sources daily ( http://www.sysoptima.com ) to help corporate executives, professionals and consultants to keep up with the latest development in enterprise software market. The website offers a knowledge base for understanding business software from a systems perspective.

shuttle from O'Hare Bingham .. Lockport Chicago limo O’Hare
In The News:

Attackers use caller ID spoofing and AI voices to steal money. Tech expert Kurt “CyberGuy" Knutsson provides seven ways to protect yourself.
Tech expert Kurt “CyberGuy" Knutsson talks about the Genesis GV60 MIV, an electric rescue EV with snow tracks for extreme missions.
Tech expert Kurt “CyberGuy" Knutsson helps you ensure a smooth online experience with a reliable, secure home network setup.
Kurt “CyberGuy" Knutsson talks about Vollebak’s Shielding Suit, which blocks EM radiation, infrared and tracking for privacy.
Even Apple products are vulnerable to cybercriminals, and a new report suggests the owners of Mac products will have to be more vigilant this year.
An inflatable six-person tiny house from a firm called 2001 looks like a space station with its inflatable dome that is transportable and eco-friendly.
Scams cost Americans an estimated $159 billion every year and average about $3,500 in losses per victim. The CyberGuy has advice to protect yourself.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents
Zeekr and Waymo are joining forces for the world's first mass-produced autonomous vehicle, combining an electric vehicle with self-driving technology.
A humanoid robot training center has opened in Shanghai, a big step in China's efforts to become a global leader in robotics and artificial intelligence.
Security experts have discovered that hackers are targeting apps on the App Store to spread malware that steals information from saved screenshots.
A new luxury SUV combines military-inspired design and high-end luxury transportation and includes two military-grade gas masks to protect against chemical warfare.
80% of stalking victims are tracked using tech. GPS trackers, like AirTags, are among the most popular ways to do it. Here's how to protect yourself.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Kurt "CyberGuy" Knutsson explains how to protect yourself against artificial intelligence-fueled romance scams, which have become the most common type of fraud in 2025.
Kurt "CyberGuy" Knutsson explains the steps to declutter text messages on a Mac or iPad. Apple offers ways to do this more efficiently.
Here's how to take control of the algorithms on Facebook, YouTube, Instagram and TikTok if your social media feeds aren't showing you content you want to see.
Beware of iCloud scams using urgent messages. Tech expert Kurt “CyberGuy" Knutsson helps you spot the red flags to protect yourself.
Travel abroad worry-free with these top translation apps for travelers. Tech expert Kurt “CyberGuy" Knutsson highlights some favorites.
The European Space Agency's Euclid space telescope was going through preliminary tests in September 2023 when it captured images of an Einstein Ring in a nearby galaxy.
Tech expert Kurt “CyberGuy" Knutsson says hackers are using Microsoft Teams for phishing, vishing and quishing via social engineering.
Red light camera tickets: Not liable to ID the driver; some are fishing expeditions. Tech expert Kurt “CyberGuy" Knutsson helps you fight back against tricky fake tickets.
The apps collecting the most data about you are among the most widely used. Kurt the CyberGuy takes a look at 20 of these apps and how you can protect personal information.
AST SpaceMobile of Texas is developing the world's first global cellular broadband network that can connect directly to your smartphone without special equipment.
Community Health Center, a Connecticut-based healthcare provider, has disclosed a recent data breach affecting over 1 million people in the U.S.

Freight Forwarding ERP: Microsoft Business Solutions Great Plains customization & setup ? overview

Microsoft Great Plains may be recommended for international freight forwarding... Read More

Microsoft CRM Customization Secrets ? Second Edition

This article is for advanced Microsoft CRM SDK C# developers.... Read More

Microsoft Great Plains Food Processing ? Implementation & Customization Highlights

Microsoft Great Plains might be considered as ERP platform to... Read More

Think Of This

Think of this, first we had the HAM Radio, then... Read More

Microsoft Great Plains PM: Payables Management

Microsoft Business Solutions Great Plains is marketed for mid-size companies... Read More

Linux Dual Boot-How To Format

Just the thought of a duel-boot scares many people away,... Read More

Keep Your Software Simple! A Review of EditPlus

I like my software simple. If it's too complex or... Read More

Microsoft Great Plains RW: Report Writer

Microsoft Business Solutions Great Plains is marketed for mid-size companies... Read More

Great Plains Custom Development: Dexterity, VBA, SQL, Crystal, eConnect ? Overview For Programmer

Microsoft Great Plains is main Microsoft Business Solutions accounting package... Read More

QuarkXpress Tips: How to Move Content Between Print and Web Layouts

Since its release in 1987, QuarkXpress had made an immediate... Read More

Professional XP Style Icons in Software and Website Development

Using professional icons in your application or website can bring... Read More

Know-how in Microsoft Publisher

For those who still don't know, Microsoft Publisher helps computer... Read More

Can You Calculate Complex Financial Calculations?

Are you a whiz at calculating financial information? Not the... Read More

Microsoft Great Plains: Dexterity vs. eConnect ? FAQ

Microsoft Business Solutions Great Plains, former Great Plains Software Dynamics/eEnterprise... Read More

Computer Based Language Development and Spell-checking

Language development computer: Computer-based method for aiding language development seems... Read More

Device Driver Basics

Most people understand that the "hardware" part of their computer... Read More

Why Stick With Email Clients Like Outlook?

Trying to figure out a stream in banning one email... Read More

Helping Newbies Understand Professional Software

The Windows registry is a huge database that ensures normal... Read More

What You Must Know About Spyware Right Now

Spyware is like the new technological nuclear weapon on the... Read More

Reduce TCO: The Java Database Way

TCO (Total Cost Ownership) is the buzzword in... Read More

Quick Summary of Basic and Common Linux Commands

There are many commands that are used in linux on... Read More

Why do Manufacturers Invest in Business Management Software?

With many manufacturing shops heading over seas in favor of... Read More

Microsoft Great Plains Implementation: Verticals - Wholesale Order Entry center ? overview

Microsoft Business Solutions Great Plains has substantial market share and... Read More

Chinese Input - Step by Step Instruction on How to Input Chinese Characters in English Windows XP

Enabling Chinese input is quick and easy, there are only... Read More

Microsoft Great Plains Distribution, Barcoding, Consignment ? overview for consultant

Microsoft Great Plains ? ERM from Microsoft Business Solutions and... Read More

Mishawaka limo O'Hare ..