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Implementation Failures for an ERP System

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Description

Implementation Failures for an ERP System

Introduction

Enterprise Resource Planning (ERP) systems are put in place to improve business efficiency through automatic processes, help in data sharing around a business and connecting all the business entities. This study was conducted to identify key areas that an ERP may not work.

Method

The research was conducted through semi-structured interviews to evaluate ERPs. The research was conducted in several organisations among top bosses.

Results

The results of this research indicate the ERPs fail for several reasons. The first reason is problems on the customer purchasing the ERP. ERP is very expensive given that it requires various deliverables, customization, testing if the system works, user training, end user training and setting up the system for use. All these processes require money that the customer may not just have. The customer may not have an idea of where they want the ERP to work and that delays the process. Other problems include unavailable Standard Operating Procedures, processes without a leader to ensure they are actualised; employees who are not interested in changing the system as well as working without a specific person in charge of the project can fail the whole system.

Results also indicated that not giving the system sufficient attention and choosing the wrong ERP may lead to failure.

The system may also fail because the vendor failed to deliver; they lacked enough experience and didn’t have enough resources to deliver the right ERP.

Conclusion-implementation Failures for an ERP System

All these problems have solutions. To avoid these problems however, the best solution is for the customer and the provider working together on the project to ensure that the success levels remain high. Two heads are better than one.

References

Alhayek, W. (2017). Implementation common failure reasons for an Entreprice resource planning and how to avoid [Ebook] (1st ed., pp. 70-81). Jordan: Dar Almandumah. Retrieved from http://858341/Record/com.mandumah.search://http