How to avoid ERP failure?

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After implementing large number of ERP projects, including SAP, I can confidently say that ERP is the most misunderstood technology in India. Hence ERP failures in India are very high. Thus business owners are either afraid of buying new ERP or are frustrated with existing ERP.

So can we avoid ERP failures or revive existing ERP?
Answer is ‘Yes’.

Let’s try to understand as to why decision makers need ERP. Is the purpose of ERP is to act as a single database for entire organisation or is it just another fad?

Objective to have ERP is different. ERP system should be able to help business owners to take important business decisions quickly. Word ‘quickly’ is important. After ERP implementation, if MIS team is taking too long time to download data in spreadsheets and then do data massaging then ERP implementation can be considered as a failure.

So how to avoid ERP failure?

Use following 5 steps to ensure successful ERP

  1. First decide as which few but important information can help you in taking routine business decisions e.g. how much cash outflow is expected in next one month and against it how much inflow is required, how much is cumulative sales as on today, how much is value of inventory etc.
  2. Ensure that ERP is able to give answers to identified questions
  3. Get ERP system configure to get those answers
  4. Test system thoroughly before Go Live
  5. After Go Live of ERP, use only this system data to take decisions, avoid running any other systems simultaneously

All the best for successful ERP



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