Increase ERP implementation success rates

We are initiating a series of blog posts for successful evaluation for enterprise software. Over the next several weeks we will post a blog entry (approximately one a week) specifically on how to evaluate enterprise software identify obstacles and best practice approaches on software selection.  
As ERP systems advance by becoming more agile in nature many vendors are fulfilling this new trend as consumers demand it.  Since ERP is looked at by many to be too difficult to understand, to implement, achieve roi, consolidate disparate systems and automate menial labor intensive tasks  how come there are so many horror stories about failed implementations ?

One familiar statistic is that over 70% of ERP implementations fail. Why ?   There are many reasons why an implementation may fail however, they are usually categorized into Project scope, time, cost and expectations.  


A lack of an appropriate evaluation method can cause your ERP or enterprise software solution to fail.  A complete software evaluation method specifically designed for enterprise software selection can aid organizations in identifying key problem areas to any failure points that may occur in the future. The complexity of the software may cloud the original intent of the software purchase by not identifying the true scale and functions required.   Having a methodology for software selection assists in the clarification and differentiation between solutions. 


Problems that can be identified by having a proper selection method are:

• Alignment of Business, IT organizational requirements.  Vendors are evaluated by similar alignment of values, fit, scope, implementation expertise, industry expertise, time frames that are in expectations with your own, training and  usability.   

• Cost overruns due to miscommunicated time expectations and consultant costs from the organization and vendor as to what actually is to be installed and what level of user acceptability is acceptable for the organization.  In the organizations case - cost regulation and constraints, on the vendor side, implementation times, methods and sometimes failure to disclose full pricing on what is included and what is extra.  

• Scope creep - not understanding the actual business reason of why you are implementing the software, what it is actually solving or allowing your business to do.  Many times complimentary or not necessary for now modules get "thrown in" as part of the evaluation which changes the complexion of the evaluation process and possibly the vendors in which are now being evaluated. 

•  Organizations often underestimate the complexities of enterprise software by being too aggressive by not fully understanding the scope of the solution, what is actually solved, how it does so, features/functions, scalability complexities that may be required to for integration and parallel testing scenarios.

Overall a one key component for ERP implementation success is how well you evaluate the enterprise solution.  Examined are some of the obstacles that can be identified when using a proper software selection method. Over the next few weeks several topics will discussed in enterprise software evaluation.  Stay tuned......