Page 16 - Logistics News - September - October 2021

ENTERPRISE RESOURCE PL ANNING

Why ERP projects fail

By Mark Wilson, SYSPRO CEO: EMEA&I

Enterprise resource planning (ERP) systems require a certain level of planning
and coordination to build and maintain. Unfortunately, many ERP projects
ultimately fail as they are driven by short-term goals that have little relevance to
the long-term success of an organisation.

he reason an organisation is implementing a new Keep testing after implementation
ERP system in the first place is because there Testing is rarely given the attention it deserves. Failing to
Tare business benefits to be had. A successful test correctly and thoroughly will result in you not truly
implementation lays the foundation on which companies understanding how the ERP system works and which areas
expand their businesses, launch new initiatives and improve require improvement. It’s essential to dedicate time to
existing operations to grow revenue and reduce costs. ERP mapping and cleansing your test data and practising the
systems are used by almost every department in a company, processes.
hence a successful ERP implementation is vital.
Businesses need to be able to adapt to the inevitable
The fundamental problem in ERP implementation is future changes in processes, staff, customers and
many organisations think of it as only a one-off project. An technology. Investing in an annual health check to
ERP implementation is a long-term project whose operational ensure processes and systems remain aligned, creating a
success will have long-term effects on the business. training plan for new starters and taking advantage
of ERP system vendor upgrades and enhancements are
However, there are numerous stories about failed ERP all vital steps to ensure your system continues to add
implementations that were ultimately a loss in time and value.
money. There are several reasons why an implementation
may not go to plan, many of them intertwined, but these The IDEAL method of implementation
can be overcome with the right partner and implementation Most ERP implementation failures have one thing in
methodology. common, a lack of forethought. Most businesses fail at
implementation because they do not have a strategy in
Lack of planning around business objectives place to handle the unexpected. This is why choosing an
ERP implementation requires detailed and coordinated ERP implementation partner with experience and exposure
planning. Often, a failed ERP deployment project can be within several key industries will bring knowledge to the ERP
attributed to businesses overlooking the planning stage. Many implementation process. SYSPRO’s IDEAL implementation
people dramatically underestimate the level of commitment methodology uses best practices developed over many years
needed from all levels of staff to implement ERP successfully. of experience and facilitates a successful implementation and
Before embarking on an ERP implementation, you need to a roadmap to reaping a return on investment on the project
clearly define your post implementation objectives. for many years to come.

The foundation of IDEAL lies in the project
System implementation will also likely fail when a project administration, controls and governance activities that are
L O GI S T I CS NEWS A project’s chances of success are far greater when all the performed throughout the implementation. Best practices
specification has not been well defined and understood.
in project management ensure that the project is meeting its
requirements are clearly delineated at the outset. A system
defined objectives and remains on track within the defined
that is used throughout the company requires companywide
cooperation – and insight from all departments is vital for a
scope. It also ensures costs are kept within budget and that
well-rounded ERP solution.

14 SEP T E MB E R/O CT O B E R 2021 resources are being managed effectively. •
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