Strategies for Preventing ERP Failure - All Implementations Fail

I just Googled “how to successfully implement an ERP system." Here are a couple of observations based on that search:

The search returned twenty-nine million results. It’s exhausting looking through all the endless advice.
There is no consensus on the exact number of critical factors or tips. A quick review saw it range from four to twelve.

Then I Googled “ERP implementation failure," and here are my observations from that search:

Five million search results.
The top three results were Ads for "How to implement ERP successfully."

Based on this extensive market research, I had two "Ah-Ha" moments:

Rampant ERP implementation failure must be due to an inability to agree on the correct number of crucial implementation factors or tips!
No Ads offered to help companies fail at their ERP implementations. Odd, since that is a thriving market.

Of course, that is a tongue-in-cheek analysis.
However, if you are contemplating or in the process of implementing a new ERP system, then you must come to grips with the fact that your implementation will fail.
If we reasonably define a successful ERP implementation as meeting the following three criteria:

Time – successfully meet a well scheduled "Go-Live" date.
Budget – minimal or “non-material” cost overruns.
Functionality – deliver the critical business processes and reporting needs of the enterprise.

Based on those three metrics, all ERP systems fail. The only variable is to what degree:

Spectacularly – bringing down companies
Critically – requiring a complete do-over with a new team or new solution
Incrementally – slowly draining resources and enthusiasm while delivering only a portion of promised functionality at a dramatically higher cost

All together now, think of the last ERP implementation that you were personally involved with that was a spectacular success. I’ll wait.
Ironically, our quick internet search delivered a treasure trove of advice on successfully implementing ERP software.
It is time for a new approach and new ideas. In a series of posts, I will look at the standard ERP sales and implementation process areas that contribute to eventual failure. Success for this series of posts would be discussing how to implement fresh ideas and strategies to break the cycle of failed implementations.
Our first post will look at the RFP - or more accurately, the RFP, Recipe for Phailure.
Success as a Partner at Pelorus will be to translate thirty years of ERP selection and implementation experience into reimagining how to get to value faster with fewer missteps. I look forward to discussing your project.
If you are in the process of selecting a new ERP solution or in the midst of a challenged or failing ERP implementation, give us a call.

Newer Post >

A man in a suit is pressing a button on a screen that says erp.

The Ultimate Guide to Implementing Dynamics 365 Business Central in 2025

April 21, 2025

Microsoft Dynamics 365 Business Central (D365 BC) continues to be a leading cloud-based ERP solution for small and mid-sized businesses. Its comprehensive features span finance, supply chain, sales, and operations, making it a pivotal tool for organizations aiming to enhance efficiency and scalability.

A calculator , a notebook , and a pen are on a table.

In Control, On Budget: The Benefits of Fixed-Price Projects

December 18, 2023

In Control, On Budget: The Benefits of Fixed-Price Projects

A person is holding a tablet with a map on it.

Navigating Microsoft Dynamics GP Upgrades: A Complete Guide

December 5, 2023

In our commitment to providing insightful business guidance, we emphasize the significance of transitioning to Microsoft Dynamics 365 Business Central or Finance and Supply Chain Management , strategically avoiding challenges associated with the scheduled end-of-life of Microsoft Dynamics GP in 2025. This proactive move ensures cost efficiency, modern cloud features, and steadfast support, allowing businesses to align systems with growth ambitions for sustained success at this crucial juncture. Introduction: In the agile world of Microsoft Dynamics GP (formerly Great Plains) upgrades to Business Central (BC), decision-making is not always simple. Amidst the flurry of the GP to BC marketing campaigns, our consulting team has been inundated with customer queries. This surge prompted us to delve deeper into the intricacies that marketing materials often obscure. We created a roadmap to help guide GP users with the questions needed to address their business. You can find our complete roadmap here , or read a great overview of the guide below.