Question

Describe causes or factors that contribute to ERP failure

It would be great if you can add some sample to elaborate the explanation. (min 450 words)

Answer 1

Failure reasons:

• Errors from keying in the same data more than once
• Lack of timely data due to periodic updating between systems
• Problems with data being defined differently in different systems
• lengthy and challenging implementations
• ERP systems are so complex, one person cannot fully understand a single system
• The company’s business processes may not be well defined or managed
• If a company is not prepared to make its processes more efficient, then it will not gain the benefits an ERP system can provide
• Some executives naively hope ERP systems will cure fundamental business problems
• Some executives and IT managers don’t take enough time for proper analysis and planning for implementation
• Some executives and IT managers skimp on education and training
• Sometimes the ownership of the implementation project is not given to the employees who will use the system