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ERP Implementation Failures

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.

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ERP Implementation Failures

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  1. ERP Implementation Failures IST 402

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

  3. 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

  4. 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

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

  6. Reasons for Failure

  7. 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

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 Willcocks and R. Sykes • Technological Determinism • Supplier/Consultant-Driven • Outdated Relationships & Capabilities Olson, David Managerial Issues of ERP Systems pp.112-114

  9. 12 Cardinal Sins of ERP • Lack of top Management Commitment • Inadequate Requirements Definition • Poor ERP Package Selection http://rockfordconsulting.com/erp.htm

  10. 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

  11. 12 Cardinal Sins of ERP 8. Unrealistic Expectations 9. Inadequate Training 10. Poor Project Design/Management http://rockfordconsulting.com/erp.htm

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

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

  14. 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/January01/implementing.htm

  15. Questions?

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