Uploaded on Sep 1, 2022
Let's explore the most common reasons for failure explained by Christopher Salis.
Christopher Salis Explains the Top Reasons for SAP Implementation Failure
Christopher Salis
Explains the Top
Reasons for SAP
Implementation
Failure
Implementing an ERP system such
as SAP S/4HANA can be considered
new territory for most businesses,
eve0n those with prior experience
with2 large and complex IT projects.
The reality is that most SAP
projects do not fail due to a flawed
sele0ction process or ERP system
func3tionality. ERP implementations
fail because they are not viewed
as a0 people-centric system rather
than4 a large IT project.
So, let's explore the most common
reasons for failure explained by
Christopher Salis.
Being Product-Led
The foundation is the first step in any
construction project, and it is prudent to
ensure that the foundations are sound.
The tendency with SAP S/4HANA is to
approach this from the ground up as
well: ensure that the IT infrastructure is
sound and fit for purpose, that data can
be migrated, and that new systems work
within given performance parameters.
As a result, the implementation is viewed as
an "SAP S/4HANA migration project" rather
than a business transformation project.
"Migration" implies a technical approach,
whereas business transformation necessitates
early input from all departments.
Unfortunately, end users are unlikely to be
involved in the early stages of a business
transformation program. As a result, specific
critical strategic steps may be defined at this
early stage - before the company has wholly
defined what the program is for.
Features Over Function
While it is healthy to think of your
SAP S/4HANA project as one that will
transform your business, don't expect
systems to solve all your problems
and elevate you to the position of
digital leader. Setting unrealistic and
overly optimistic expectations is
another path to failure.
The failure at Lidl is an example
of having unrealistic
expectations. Any project must
have a reasonable time frame
and align its working methods
with system capabilities. After
seven years and €500 million, it
became clear that bridging the
gap between how Lidl wanted to
operate and how the SAP
systems have been designed to
work would not be possible.
Lacking Experience and
Expertise
Your internal resources and
vendor systems integrator may
be capable of handling your entire
project, but how do you know?
Your systems integrator and your
ERP project/program manager
should have prior ERP experience
in your industry. They may be
capable of designing and
managing the system
development process, but can
they handle the additional people
and process the required
transformational elements?
Change management, risk assessment, and user
adoption are all critical to success. Have you
accumulated enough experience and expertise
to deal with them? Without these capabilities,
the project will fail once more.
Although ERP systems are frequently
regarded as a necessary evil, they
are here to stay, particularly as
businesses strive to go digital. You
can avoid the major pitfalls of the
conventional, often complicated,
implementation approach. So, plan
ahead of time, gather requirements,
form strong teams, and strengthen
expertise in process and people-
centric issues.
Comments