What Are The Reasons Responsible For Erp Failure?

By Author: Dr Easton Patrick
Total Articles: 531
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ERP is the best used software application for inventory control, project planning and customer relationship management. It is a key promoter of entire resources and helps in achieving business goals at a faster rate. This integrated software package is a best recommended solution for proper controlling and management of resources. It is real time application software implemented on the basis of business functions and strategies. Implementation of ERP software package is a step by step process depending on various company factors. At present, ERP is one among the widely used software packages by small and medium sized companies. Failure of ERP is a commonly reported problem by many of the business owners. There are many factors leading way to ERP failure in an organization. Let's search what are the reasons responsible for ERP failure?

Improper selection of ERP software package is one among the key reasons for ERP failure. Before choosing an ERP system for your organization, it is recommended to have a good research on factors like vendor reputation, vendor service and company goals. It is advised to pick an ERP software ...
... package according to the needs of company. Lack of resources due to improper planning is an important reason contributing for ERP failure. Planning of project before implementation plays a major role in controlling resource field strategies. It helps in producing maximum benefit at affordable cost. Proper utilization of resources without wastage is a main advantage of planning and designing project infrastructure. Lack of professionally qualified team for analyzing and testing of project is another highlighted reason for ERP failure. In order to attain company goals with out delay, it is advised to have a good support team with technical assistants.

Wide variety of customization is a common reason leading way to ERP failure. Lots of options in customization increase the chance of error and operation failure. Proper training is an essential factor here. Improper training of employees leads way to unknowing of functions of new system package. This causes delay in resource performance and operational efficiency. Improper designing of project with an unrealistic approach is another common reason for ERP failure. While doing project design, it is advised to do plan with a realistic approach so that employees can easily implement the specific project in practical.

Poor communication between vendor and company is a main reason behind ERP failure. For enhancing the operational efficiency of an organization, good communication is an important factor. Vendor service, maintenance and support are certain key factors notable for better resource management. Lack of communication between company and vendor ceases the upgrading process of software package and slows down the resource management process. Internal resistance in changing the old process is another reason responsible for ERP failure. For improving resource performance, software modules of ERP system need upgraded driver at definite time intervals. If there is internal resistance in renewing or rebuilding ERP software package, this will not be possible. Good training and proper education about implementing new ERP system is the best solution for overcoming this trouble.

Read Benefits of ERP for SME. Also know Advantages of ERP in an organization. Read about SAP ERP Course Fees and duration of course.