Why do ERP Projects Fail 75% of the Time? An Expert’s Look

Failure

In Zero Point, we’ve been responsible for rescuing dozens of failed implementation projects. While ERP software is paramount for any company, implementing it is a challenge.

Luckily, most projects fail for the same mistakes. Identifying key implementation areas is the first step to ensure you can succeed in implementing your ERP system.

Below, we’ve developed a software selection checklist to prevent these errors.

1.   Software selection

The first step is to find an expert in your business’ area. They’ll provide vital aid in choosing the best software for your company. Many companies choose to do it themselves and fail to consider crucial factors due to their inexperience.

2.   Identifying solvable problems

ERP implementation’s primary goal is to solve problems: better management, accounting, inventory tracking, etc. Integrating an ERP system without realizing what it can improve leads projects to wander. It depletes resources before completion.

3.   Identifying MoSCoW’s

MoSCoW refers to “must-have, should-have, could-have, and won’t-have.” This approach allows you to prioritize what you need from your ERP software. It makes it easier to choose the best software according to your organization’s requirements.

4.   Expert consultation

Once you’ve gathered your requirements and goals, the next step is to find an implementation expert. Choosing them is similar to choosing software. Make a list of what you need: transparency, experience, methodologies. Don’t settle for less than what meets your expectations.

5.   DEMO and POCs

Both demo versions and proof-of-concept are fundamental to assess any software’s capabilities. You must focus on the areas that concern you the most. Try this approach with every tool in your list until you find what works best.

6.   Demonstration schedules

Additionally, you want product showcases for you and your users. Doing so will allow everyone to understand why the investment is necessary. Don’t forget about users. Management needs to approve the investment, but most of your feedback will come from users.

7.   Comprehensive RFP and RFQ

Requests for proposals and quotes are crucial to gain insight into your ERP software and implementation partners alike. They’ll allow you to understand a vendor’s offer and service, as well as the costs you can expect.

8.   Asking for references

For implementation partners, ask for at least three or five references. The best portfolios mean little if satisfied clients can’t back the company’s claims. These references also let you create expectations for the service.

9.   Total ownership costs

Don’t fall for implementation and licensing costs alone. You also need to account for training, maintenance, and upgrades. Many ERP projects fail due to unexpected expenses, which usually break budgets.

10.  Contract and price negotiations

Finally, make sure you negotiate anything that doesn’t fit your requirements. You’d be surprised at how flexible some services can be with their prices. Additionally, contract terms require care and negotiation if you find anything that feels wrong.

Topics:

Zero Point ERP Solutions

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