Shulou(Shulou.com)06/02 Report--

QAD takes you to explore the reasons for the failure to deploy ERP.

Did you know that 21% of ERP implementations fail in the launch phase!

The failure of ERP projects is often due to the fact that ERP suppliers have made "three major mistakes in implementing ERP in the manufacturing industry", including: (1) lack of continuous improvement methods, (2) focus on software only, and (3) work is considered to be done after deploying the solution. All of these errors have something to do with paying too much attention to the functionality of ERP.

Lack of foresight-focus on ERP functionality

What the executives of the company are looking for is to achieve better business results. ERP is seen as one of the ways to improve results. As the ERP project is gradually used for vendor selection and implementation in the organization, ERP has changed from a "means" to a "goal", which means that people in the IT department believe that installing ERP is the goal.

It is precisely because ERP has changed from the means of improving business results to the purpose of IT implementation, it is difficult to avoid the fate of failure of the project. Too many ERP projects end up focusing on what the software can do, not what you need the software to do, and more importantly, understanding why the software is needed. Even if the enterprise recognizes the need for continuous improvement to optimize the process and tries to adjust the ERP, it will not help.

Most ERP systems are like pouring and laying concrete: in the design process, they can flow to meet the needs of the enterprise, but once implemented, they will harden, making it extremely difficult to change. The reason is simple: they are not built to adapt to change quickly at all. In addition to the ERP software itself, its agility is also affected by the services of ERP vendors and customer involvement technologies. What suppliers should do is to help identify business problems and the underlying processes that affect them, and use this knowledge to adjust people, processes, and underlying technologies. However, not all suppliers will do so.

ERP endless cycle-good intentions lead to failure

The environment is changing all the time, and with the passage of time, the gap between the processes required by the business and the ERP system will become larger and larger. This will result in frequent errors and no single version or real-time version of the data, so users no longer trust the data and the system. Subsequently, the company becomes less and less responsive to customer needs and requests, as shown in the following figure:

Perseverance-adopt a business-focused approach

ERP should be purchased as a holistic solution to support the overall business strategy of the enterprise. The market is constantly changing, and enterprises need to adopt continuous improvement methods to ensure the continuous progress of the solution, so as to support and align with strategic goals, and actively respond to market changes. ERP's continuous improvement approach is no different from the continuous improvement that enterprises pursue in other aspects of the business, but for ERP, the focus is on the process and the technologies it supports.

It should be emphasized that the only constant in manufacturing is change itself, so companies need a partner who can provide long-term support to ensure that this consistency is always maintained as the market develops. To this end, the required ERP system is still flexible after implementation and can support process changes through continuous improvement methods. In this way, it can counteract the "three ERP mistakes" made by many ERP suppliers and refocus corporate choices on what is really important to the business: customers and products.

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