Question

Search 3 Case of ERP projects failure for each of these reason

a. Unclear needs or wrong software

b. Lack of user involvement or lack of support from the company leader

c. Choose the wrong consultant (vendor) implementation

Answer 1

a. Unclear needs or wrong software

Answer:

Due to the poor quality of training provided by the consultants and insufficient education delivered by the top management and project team, users were not given a clear idea of the nature and use of the ERP system. They did not understand the rationale for implementing the ERP system or the process of implementation. Thus, they were not prepared for the implementation, and had high resistance to change, which led to political problems, poor quality of BPR and a resistance to using the system.

Many companies see the introduction of ERP software as the magic bullet solution to all their problems, but don’t take sufficient time to define the specifics of what they’re trying to accomplish or how they’ll measure what success should look like.

Often, every department expects a different improvement, so how can organizations know which requirements have priority? It’s important to have a clear documentation of what exactly you want to achieve with the ERP system and where the priorities lie. When you don’t have a detailed map of where you want to go, guiding you each step of the way, you’re likely to get lost amidst the dangerous distractions of politics, short-term thinking, and minor setbacks that turn into project derailments.

Examples:

• Lower error rate
• Reduce throughput times
• Speed ​​up time to market
• Improve service quality
• Improve collaboration between departments
• Automate and standardize workflows
• Provide accurate and up-to-date business analysis
• Support internationalization

b. Lack of user involvement or lack of support from the company leader

Answer:

Most companies know that an ERP project requires a considerable amount of commitment and sometimes overtime work from employees, in addition to maintaining the day-to-day operations. But what about the management team? Leadership that’s disengaged or too busy can kill a project in its tracks. An ERP implementation isn’t about pushing a button and everything happens automatically: it takes time and careful attention to get right.

In order to succeed in the ERP implementation, the project team needs strong (and vocal) support from management. Communicating clearly and frequently with the company about the expectations for the project, helping free up the resources needed, maintaining a positive attitude and energy, showing appreciation, and making themselves available for planning sessions are key ways the management team can help overcome this pitfall.

c. Choose the wrong consultant (vendor) implementation

Answer: Due to poor ERP selection and evaluation process, ERP software was found to be ill-fitting with the business requirements. For example, the ERP was inefficiently managing a high volume of product master files, and unable to design complicated bills of materials and production planning formulation). Our research results indicate the ERP system was utilized in a very limited way due to the problem of misfit. Project teams relied on heavy customization (for example, changing the system program, or writing many management reports, or conducting data transfer as workarounds) to solve problems.