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Erp implementation

It’s not pretty out there. Companieshave spent fortunes on ERP soft-ware and implementation only to findthat business performance has notimproved at all. These large invest-ments and negative ROIs have createda whirlpool of controversy, rampantcompany politics and even a numberof lawsuits. The trade press has report-ed many negative ERP stories, andeven annual reports have pointed thefinger at ERP for lower-than-expectedearnings.It’s not pretty out there. Companieshave spent fortunes on ERP soft-ware and implementation only to findthat business performance has notimproved at all. These large invest-ments and negative ROIs have createda whirlpool of controversy, rampantcompany politics and even a numberof lawsuits. The trade press has report-ed many negative ERP stories, andeven annual reports have pointed thefinger at ERP for lower-than-expectedearnings. For some, this has created ahigher level of fear about making a bigERP mistake.Much of the time, ERP softwarevendors are the targets for blame whenanticipated results do not materialize.Are the ERP vendors that sold thesoftware the real culprits for the lackof business performance improve-ment? The answer is, not very often.Certainly, it can often be argued thatERP system logic is sometimes illogi-cal, functionality is missing, functionsperform poorly and so on. Butaccountability for ERP software selec-tion and implementation usually lies tovarying degrees with internal person-nel and often with external consul-tants.Selecting and implementing a newERP system, and the process changesthat go with it, is unquestionably acomplex undertaking. Regardless ofyour size and perceived resources, anERP implementation is not somethingthat should be approached without agreat deal of careful planning. Amongcompanies that have been through aless-than-fully successful ERP imple-mentation, five reasons for poorresults show up consistently:• Operating strategy did not drivebusiness process design and deploy-ment.• The implementation took muchlonger than expected.• Pre-implementation preparationactivities were done poorly, if at all.

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