Is Your Organization a victim of failed ERP implementation project?
5 Steps to fix the failed project.
A failed ERP implementation project is quiet Common now days; there is no secret to it that ERP Implementations fail. In fact 70% of ERP Implementations are failures only 30% of the Project survives; such failures can be the Costliest Mistake a company makes. There are companies who have wasted tons of money on such implementations and it turned out to be a big fail. Some of the Examples of these companies are lawsuit against one of the Tier 1 ERP Company; the customer had spent $30 million claiming that it spent $18.6 million on an ERP implementation that was supposed to simplify its HR and Finance Processes. Instead the customer alleged that it ended up with administrative nightmares, as it couldn’t perform Basic Financial Functions for two years after the botched implementation. In the end the customer scrapped its Project and the system.
The failed implementation can be because of two major reasons
- First being the core team members who don’t invest the right amount of time on the project which is very much needed, as soon as the project starts the team members should invest their maximum time on implementation which requires a lot of planning. The team members/ users should be properly trained to implement the ERP solution. Right people should be assigned the right duties with the right governance structure.
- Secondly, inadequate testing which is one of the major Problems. For Example, if you are the purchasing core team member, you need to think through every business scenario in your department, such as creating a new purchase order, modifying an open purchase order, approving a purchase requisition and adding a new vendor to your system. Once you have listed your business scenarios, create “to be” Process flows and step-by-step work instructions for each. The instructions should be clear, so a new employee can follow them to complete each Process.
Case study of every failed implementation is important and should make a checklist before starting a any new implementation reflecting those key points.
5 Steps to fix a Failed ERP Implementation
- Identify the Key Problem
It is very important to identify the real objective for implementing ERP. Take a long look at your software, ERP failure is not because of the software, the Partner capabilities, Team Member Support, Infrastructure all these play major role in making the ERP Project a success. The Recovery team should sit and analyze the Problem that causes the failed ERP implementation Project and the Project team should reconsider again if they had evaluated the ERP options appropriately or just chose the ERP solution based on assumptions.
- ERP Health checkup
ERP Health checkup are powerful solutions which run diagnostics of the current ERP Solutions either on premise or remotely. A detailed summary of the findings are real-time reports which can suggest the action to be taken based on the results, around 90% of companies experience a significant improvement in reaching corporate objectives, generating Financial savings and saving the failed ERP implementation Project.
- Reorganizing User acceptance training
Take the time to talk to the users and team members using the software to evaluate if they were adequately trained on how to use the solution in real world situations. If end users don’t know to use the solution in real world scenarios, then they are certainly going to see this as a failure. User’s knowledge and feedback is very important for the ERP Software to function effectively.
- Reexamine the ERP failure through an Independent ERP Consulting Partner.
The failed project has to be overlooked through a bird’s eye view by an independent body because the Client and the ERP solution partner will not be able to take decision outside the Solution. Whereas an ERP consulting team is not bound by the restrictions of the solution and can provide independent and accelerated assessment of how to get your ERP Initiative back on track.
- Get the Right Team
Once the Problem has been identified and the software has been examined setup the best team to implement the ERP Project, In case the existing partner/ ERP solution to be replaced, the right team to be setup to implement the ERP Project. Evaluate the team and make sure they are well trained and knowledgeable about the reconsidered ERP solution.