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British research: 'One in five ERP implementations fail'

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Twenty percent of all ERP implementation projects fail. That is the one harsh conclusion from a British study on ERP implementations. Recent example is supermarket chain Lidl, which stopped implementing SAP after 7 years and 500 million euros. Why are ERP implementations so difficult?

For many companies, an ERP implementation is a big job and involves considerable costs. It is therefore logical that companies take a long time to consider the pros and cons before choosing an ERP package and joining forces with an ERP partner.

What goes wrong?

Even when it all makes sense on paper, in practice it may turn out that "it doesn't work." The players involved are often in the dark. What went wrong?

Logres has accumulated the necessary experience over 25 years when it comes to ERP implementations. Fortunately, our success rate is a lot higher than the UK survey shows. What risks do our consultants see and how can they be tackled?

  1. The ERP package does NOT make work easier
    It seems obvious, but an ERP package should make manual checks and actions unnecessary. Yet it turns out that some companies, after the implementation, actually need extra actions for data entry.The cause of this is often that the chosen ERP package does not sufficiently connect to the existing workflow or that, on the contrary, a lot of "tweaking" is required to make the package fit.
  2. The ERP package does not connect to existing systems
    When companies switch to a new ERP package, it is nice when all other software systems used can be linked to the ERP package of choice.If that link is not made, differences in data from different databases remain and manual exports and imports often have to be done that take the speed out of the overall process.
  3. There are too many stakeholders, or too few
    When implementing an ERP package, it is important to carefully put together the team that will handle the implementation. When the total implementation is in the hands of one person, it often turns out that this person only sets up the package according to his own preferences. And vice versa: the more people: the more sluggish the implementation will be. Sometimes there are so many opinions that the entire project runs aground.
  4. ERP implementation lacks sufficient support
    Because a new ERP package often means a drastic change for a company, it is important that those within the company who introduce the package have a sufficient mandate and at the same time have sufficient knowledge of the day-to-day business on the shop floor.It cannot be the case that all decisions about the ERP package are imposed from above. In practice, this leads to protests. If employees "don't want to participate," the ERP package will never be a success.
  5. There is insufficient 'aftercare'
    An ERP implementation is not purely a technical process. On the contrary, it is a process in which the daily operations of a company must be changed. Therefore, new users of the package must be instructed properly and competently.A 100% trouble-free introduction is a usually an illusion. Therefore, the ERP partner must remain readily available for questions and problems in the months following the introduction. It is often necessary for a consultant to be physically present for several days in the first weeks to supervise the commissioning.The advantage of years of experience is that our consultants often see potential threats coming well in advance. This allows them to tackle problems before they actually become a problem. This is how Logres helps clients with successful ERP implementations.

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