Why ERP Implementation Fails (1)
                     Why ERP 
Implementatio
n Fails? ?
Introduction 
Enterprise resource planning (ERP) software 
often arrives with several confirmations. 
Right from fixing service industry errors and 
data collection to saving ERP 
implementation costs. In contrast, there is 
always room for delusions during and after 
implementation.
Common Reasons 
for Failure
Lack of Realistic Expectations
Negligence to Embrace Change
Lack of Shareholders’ Commitment
Lack of Proficient Project Managers
Lack of Budgeting for Equivalent Software
Overburdening of IT Department
Inadequacy to Train End Users
Lack of Realistic 
Expectations
Companies often charge a lot without a plan with a precise definition of their business 
requirements and goals- the main ingredient of failure. Institutions must set their 
benchmarks and precisely define what is a success or a failure coupled with the drawbacks 
around the corners.
Businesses shouldn’t allow the software to decide their business processes. The key is to 
align the software with business requirements.
Negligence to 
Embrace Change
Most companies often flame out to consider ERP implementation as a critical business 
asset. No effort lies in assessing user acceptance of the novel system.
However, “change is the only constant,” and firms shouldn’t underestimate the change 
as it can harm an institution.
To circumvent such challenges, firms must be ready for any change emerging from ERP 
implementation. Staff engagement and opinions can help ease the implementation 
process. Additionally, solution compatibility with the company’s culture is a must. 
Employees within the firm must be ready to adapt to emerging changes.
Lack of 
Shareholders 
Commitment
ERP implementation is not an overnight task! It requires support from stakeholders and 
employees, too. Undoubtedly, getting top executives involved in a task is a challenge. For 
stakeholders’ onboarding, you will have to impart proper training, coaching, or any other 
activity that can help you attain business goals. Besides, it’s essential to warn stakeholders 
of potential risks, irrespective of the big rewards that lie in ERP implementation.
Lack of Proficient 
Project Managers
Poor project management is a common phenomenon within organizations. Activities as 
intense as ERP implementation involve emerging issues. Good leadership is the need of 
the hour to hold people and track things. To avoid such odds, employ someone to take 
charge of the implementation and management. If you don’t happen to find someone 
proficient, outsource your ERP implementation needs.
Lack of Budgeting for 
Equivalent Software
Companies overlook that they might require some additional software during or after 
the implementation process. That is, no budgeting is set to cater to such overheads. 
Significantly, these overlooked accompaniments lead to the failure of parts if not the 
ERP system. It’s recommended to have a set budget for such ERP implementation 
scope.
Overburdening of IT 
Department
ERP implementation process demands a lot from the IT department. However, the IT 
department is not responsible for the manufacturing and financial process. 
Therefore, they’re not proficient enough to change in these segments. Expert 
integration within vital business processes of a firm can serve as direct support for 
ERP implementation in particular departments.
Inadequacy to Train 
End Users
Post-ERP implementation, companies assume that the employees can proficiently 
use the ERP system. Hence, companies abort investing in employee training. 
Authoritative personnel of the company must appoint a dedicated project manager, 
or ambassador who possesses a deep understanding of the ERP solution. These 
individuals must be proficient enough to train fellow employees concerning the 
usage and functionalities of the system. This strategy boosts the possibilities of a 
successful ERP implementation.
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