ERP Implementation Failures IST 402 Quotation To err

Quotation • To err is human, but to really foul things up requires a

Robbins-Gioia Survey (2001) • 51% ERP Failure • 46% No improvement • 56% had

Conference Board Survey • 58% Partially Satisfied • 40% Failed within a year •

Definition of Failure • ERP Never Implemented • Not used to full Potential •

Mabert et al. • 7 Issues Considered • 2 Issues Relevant to Failure –

Willcocks and R. Sykes • Technological Determinism • Supplier/Consultant. Driven • Outdated Relationships &

12 Cardinal Sins of ERP 1. Lack of top Management Commitment 2. Inadequate Requirements

12 Cardinal Sins of ERP 4. Inadequate Resources 5. Resistance to Change 6. Miscalculation

12 Cardinal Sins of ERP 8. Unrealistic Expectations 9. Inadequate Training 10. Poor Project

12 Cardinal Sins of ERP 11. Poor Communications 12. Ill-Advised Cost Cutting http: //rockfordconsulting.

Key Notes • Modify ERP • Reconstruct Business Practices • Not just an IT

References Olson, David Managerial Issues of ERP Systems pp. 112 -114 “Failure Rate” http:

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ERP Implementation Failures IST 402

Quotation • To err is human, but to really foul things up requires a computer – Anonymous

Robbins-Gioia Survey (2001) • 51% ERP Failure • 46% No improvement • 56% had PM office – 36% ERP Failure http: //www. it-cortex. com/Stat_Failure_Rate. htm

Conference Board Survey • 58% Partially Satisfied • 40% Failed within a year • Implementation – 6 month time-over average – 25% over budget – Underestimated Support http: //www. it-cortex. com/Stat_Failure_Rate. htm

Definition of Failure • ERP Never Implemented • Not used to full Potential • No ROI • Not meeting Triple Constraint • Halted Production

Reasons for Failure

Mabert et al. • 7 Issues Considered • 2 Issues Relevant to Failure – Modifications to the ERP System – Use of Accelerated Implementation Strategy Olson, David Managerial Issues of ERP Systems pp. 112 -114

Willcocks and R. Sykes • Technological Determinism • Supplier/Consultant. Driven • Outdated Relationships & Capabilities Olson, David Managerial Issues of ERP Systems pp. 112 -114

12 Cardinal Sins of ERP 1. Lack of top Management Commitment 2. Inadequate Requirements Definition 3. Poor ERP Package Selection http: //rockfordconsulting. com/erp. htm

12 Cardinal Sins of ERP 4. Inadequate Resources 5. Resistance to Change 6. Miscalculation of Time/Effort 7. Misfit of App with BP. http: //rockfordconsulting. com/erp. htm

12 Cardinal Sins of ERP 8. Unrealistic Expectations 9. Inadequate Training 10. Poor Project Design/Management http: //rockfordconsulting. com/erp. htm

12 Cardinal Sins of ERP 11. Poor Communications 12. Ill-Advised Cost Cutting http: //rockfordconsulting. com/erp. htm

Key Notes • Modify ERP • Reconstruct Business Practices • Not just an IT Project

References Olson, David Managerial Issues of ERP Systems pp. 112 -114 “Failure Rate” http: //www. it-cortex. com/ “The 12 Cardinal Sins of ERP Implementation” http: //www. rockfordconsulting. com/ “No Magic Cure will fix all ERP ills. ” R. Michael Donovan http: //www. advancedmanufacturing. com/January 0 1/implementing. htm

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