According to Gartner Research, over 75% of ERP implementations fail.
In this White Paper, we look at why many ERP implementations fail to come close to their original objectives and often have large cost and schedule overruns. Then we examine how to fix the problem, without abandoning the ERP system.
The premise of implementing an ERP system is that it will provide a single system which will meet all of the information technology requirements of an organization provided that the organization is willing to reengineer its operations to be compatible with the methods used by the ERP system.
Most ERP systems are sold on the basis that, by adopting the methodology embodied in the ERP system, the organization will dramatically improve its operating efficiency and thus justify the large cost of implementing the ERP system.
A fundamental premise of most ERP implementations is that the organization will change its operations to meet the requirements of the ERP system, which is where the fatal flaw often lies.
While accounting follows standard practices across a wide range of manufacturing organizations, their products, the methods used in production, and the organizational processes they use vary widely from one manufacturing organization to another, as these form the basis of their competitive differentiation.
As a result most ERP implementations are successful in accounting/finance but fail completely when it comes to integrating existing manufacturing processes.
To learn more about these issues and how to rescue a failed manufacturing ERP implementation (or avoid failure in the first place) please read "How to Fix a Failed ERP Implementation".