What Are The Reasons For ERP System Failure? (Terro Dashner)

What are the reasons for ERP system failure? Well, there are many reasons for ERP system failure. We will see them one after another. But before we see more of that, we need to see more of ERP (Enterprise Resource Planning) software system. Enterprise resource planning software system is meant for companies or organizations out there. Instead of using many software to handle different departments in a company Enterprise Resource Planning software system uses a centralized database and allows departments to communicate with each other in an efficient manner.

The best thing about Enterprise Resource Planning is that you will be able to use live data from every department. You will no longer be using outdated information and that will improve the efficiency of the company many fold. For the same, Enterprise Resource Planning system has become an integral part of every business - be it small, medium or large size business. However, like any other software system, it is also subjected to failures. You are required to identify these failures at the right time and find a solution to this as soon as possible. If you fail to see these failures in advance, you might end up with loss than profit. So, let's take a look at the reasons for ERP system failure.

When it comes to ERP system failure, over-customization leads the pack. As we can see, companies go through various changes as far as their business processes are concerned. For the same reason, repeated customization is a necessity in many cases. However, this backfires in many cases as those who are doing it lose track of it after a point and get in to a rut. So, you always have to keep an eye on your urge to go for over customization at all times. Remember the fact that the system could be fragile and weak after a certain point if you relentlessly pursue the over customization. Customization is important, but you have to make sure that you attempt it only once in every few months. The biggest problem with over customization is that you will have to constantly notify employees about the changes. Even they will lose track of these changes after certain point and your ERP system will be in trouble at that point.

Power struggles is another important reason when it comes to ERP system failure. As you know, there are different departments and department heads involved in the process of implementation. Since so many people with same power come together to implement the system, ego could naturally be a problem. In that case, they may try to outrun each other. At this point, the focus could be shifted from the well-being of the system to individual interests. That would result in disagreements and quarrels. In this scenario, the Enterprise Resource Planning software system will suffer the most. So, if you foresee power struggle, you need to make it very clear that people must forego their ego for better good.

Poor training is another important issue when it comes to ERP system failure. You can see that employees enter wrong values or use it wrong way due to poor training. It can destabilize the whole Enterprise Resource System. It's time to focus on training in that case!

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