Answer to Question #206075 in Management for qianhe

Question

In today company’s management meeting, your boss is discussing of changing company’s accounting system to ERP system. He pointed out companies of all sizes are investing in ERP systems to help improve processes. However, he knew that implementation of ERP is not always simple and can potentially create a lot of challenges depending on the way it managed. You are the accountant of this company, an SME. You are being assigned to handle this project.

Why implementation of an ERP fails in an organization. State the reasons.                                                                             (50 mark)

 

Answer 1

Many ERP projects fail and modifications do not live up to expectations. Implementation of an ERP fails in an organization for various reasons, including:

• Failure to set up realistic expectations
• Failure to align the system with business processes and production processes not clearly defined
• Lack of competent project managers
• Lack of commitment by key stakeholders
• Failure to budget for complementary software
• Overreliance on consultants
• Burdening the implementation process on the IT department
• Failure to adequately train end users
• Failure by personnel to embrace change or fear of change