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/newsbot/ ) 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.
![]() |
|
![]() |
|
![]() |
|
![]() |
Once upon a time not so long ago, there was... Read More
This is intermediate level SQL scripting article for DB Administrator,... Read More
Words we choose to describe things and phenomena often show... Read More
If you copy something from a Web site or elsewhere...... Read More
Microsoft CRM is relatively new player on the now becoming... Read More
Just imagine: you are walking, say, towards your car, and... Read More
Heard about the Quark "killer"?Adobe InDesign CS2. Will it really... Read More
IntroductionSurprised, by the title? well, this is a tour of... Read More
First we had the original Google search that evolved into... Read More
Looks like Microsoft Great Plains becomes more and more popular,... Read More
Let's first look at your ERP system selection (without Retail... Read More
Looks like Microsoft Great Plains becomes more... Read More
Microsoft released Service Pack 2 (SP2) for the Windows XP... Read More
Microsoft Business Solutions CRM is now approaching the phase of... Read More
Think of this, first we had the HAM Radio, then... Read More
In the Clinton era the status quo was simple: you... Read More
Microsoft CRM customization techniques are very diversified and based on... Read More
How do you run a program on a remote server... Read More
Microsoft Office program is a programming tool called Visual Basic... Read More
We don't think about mainframe software pricing anymore, we just... Read More
OEComplete is a utility for managing the personal information of... Read More
Microsoft-Outlook is a pretty amazing program. So much more than... Read More
Here is some free software tools to help you build... Read More
Microsoft Great Plains is main Microsoft Business Solutions accounting package... Read More
Microsoft Business Solutions Navision is main ERP application for European,... Read More
Simply put, fleet maintenance allows companies to monitor and maintain... Read More
Our opinion is based on our Microsoft Business Solutions Great... Read More
Spyware is software or hardware installed on a computer without... Read More
If you have been running Windows XP for a couple... Read More
Microsoft Great Plains and Microsoft Retail Management System (Microsoft RMS)... Read More
This article is the third of a series of articles... Read More
Microsoft Business Solutions Great Plains, former Great Plains Software Dynamics/eEnterprise... Read More
In 2004 Oracle, Inc. made its new step toward J2EE... Read More
People often ask me: What image file formats will Photoshop... Read More
What is Software?Software is a set of instruction written to... Read More
In this article you will find some background information about... Read More
Having from five to ten and more favorite screensavers is... Read More
Since its release in 1987, QuarkXpress had made an immediate... Read More
The world of small business accounting software can be a... Read More
IntroductionDuring the early years of our modern computer era, very... Read More
What is Colossus?Colossus is software licensed to about twenty-five insurance... Read More
Microsoft Great Plains, former Great Plains Software Dynamics, eEnterprise has... Read More
Let us give you - developer some hints in the... Read More
Just when you thought you were Web savvy, one more... Read More
Microsoft CRM is now on the scene and it is... Read More
Microsoft CRM and IBM Lotus Notes Domino seem to be... Read More
Microsoft Business Solutions Great Plains has substantial market share and... Read More
Microsoft Business Solutions Great Plains, Solomon, Navision, Axapta, Microsoft CRM... Read More
If you would like to pick something from Microsoft, or... Read More
Microsoft Business Solutions Great Plains version 8.5, 8.0, 7.5, Great... Read More
Microsoft Business Solutions Great Plains has substantial market share among... Read More
Fleet Maintenance Management is a critical position in any company... Read More
Since Version 8.0 Microsoft Business Solutions Great Plains & Great... Read More
The objective for Zandi Digital is to make available clever... Read More
When Great Plains Software introduced the first graphical accounting application... Read More
Microsoft Business Solutions main middle market ERP application - Microsoft... Read More
When you visit department stores and see that majority of... Read More
The term "document management" and "paperless office" is the subject... Read More
"Pfishing", sometimes spelled "Phishing", is a word that's used to... Read More
Does Microsoft Have any Real Competition? Copyright (c) 2003 Gregory... Read More
Microsoft Great Plains may be recommended for international freight forwarding... Read More
Heard about the Quark "killer"?Adobe InDesign CS2. Will it really... Read More
The US House of Representatives has recently passed the "Spy... Read More
There are many commands that are used in linux on... Read More
If you have been running Windows XP for a couple... Read More
Introduction: The creating of a computer program involves a number... Read More
Software |