ERP Failure Rate



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Erp Failure Rate

The ERP failure rate can be influenced by many factors. In one story the failure rate was affected by how the different reactions and attitudes of personnel in a company caused undue misery and damages while working on an ERP project. Though differences of opinion do exist in a company about systems, training strategy, what type of consultants and consulting they have or need, they must have boundaries in place in order to ensure that the differences neither reflect on the progress or the performance of the process.

How the mistakes could have been averted? The first mistake lies in the vendor or vendors chosen for the software. The company could have very well gone for customized software rather than a ready made one as it had chosen. By hiring consultants and getting an evaluation of their present status and an assessment of their primary needs, they would have seen that customized software would be able to handle the variations of a big corporation. If this was done in the first place most of the troubles could have been avoided.

Secondly the training programs should have emphasized more in using the software program productively rather than following their own system.

Assessment: The Key to the Locked Door As you now see, an effective system is built around a company's ability to leverage various systems. Any foundational system upon which the entire program rests and from which it grows must be clear and defined. A key element of an effective an system is the ability of those using the system to assess what is going on both internally, as well as in the surrounding environment, and to gather information and use this information to make informed decisions.

Assessment is the process of gathering information in order to make an informed decision.

· Assessment assists you in clarifying your strengths · It enables you to isolate essential resources · It enables you to influence a resource's value such as time or space. · It enables you to leverage one thing for another. · It will give you access to new forms of effectiveness · It gives you the ability to reduce risk in your decision making. If two choices have the same expected return, the one with the lower risk will be the best choice. Knowing which choice has a lower risk is the defining factor between having wealth or unnecessary struggle.


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