This is a good commentary on the challenges of an ERP Implementation. It can be summed up in that it is a technological, financial and human challenge that requires extensive change management.
Challenge Of ERP Implementation Q & A
Question: ERPs seem like a good idea, so why is return on investment so low?
Answer: Resistance often kills many of these new systems. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this ‘improvement.’ ERPs take away the old tried-and-true ways of working. Even though some of these cobbled together systems aren’t all that good, people understand them. When they are asked to give up what they know and what they can rely on, you often get resistance to using a new software system.
ERPs also threaten the fragile balance of power and control. The old system allows departments and some individuals to
control the type of information that gets out – and control the way data gets disseminated. The new system destroys all of that and that can be threatening.
One manufacturing plant has spent millions on an ERP, and kept throwing money at the technical parts of project, with no success. What they failed to Read more…
About the Author:
Rick Maurer is an advisor to organizations on ways to lead Change without Migraines. He is author of many books on change including Beyond the Wall of Resistance. His web site offers over 100 free tips and tools for leading change successfully. www.beyondresistance.com