How to Avoid ERP Failure

How to avoid ERP failure ?

WHAT IS ERP?

• Enterprise Resource Planning systems (ERPs) aim to integrate all data and processes of an organization into a unified system

• Software and hardware for integration

• Key ingredient unified database various system modules.

WHAT IS ERP?

The ERP Market

• ERP market dominated by SAP, Oracle, Microsoft worth USD 40 billion

The ERP Market• SAP is the biggest and most popular

– Founded in 1972 by five ex-IBM employees, by 2005, there were 100,600 installations worldwide, with over 25 industry-specific modules in the SAP portfolio.

• Founded in 1977, Oracle were first to market a reliable relational database. The second largest software company after Microsoft

• Microsoft, also started in 1977

WHY ERP ?

“Insanity is doing the same thing over and over again and expecting different

results…”

Albert Einstein

WHY ERP ?

–Data and process integration

–Single view of the data

–No Duplicated Efforts

–Current Technology Adoption Levels

Failure

• Still Many implementations of ERP systems fail

• We conducted this research to find out the reasons of this failure..

The Research

Fortress Products

D.G Khan Cement

Golden GasKohat Cement

PIFRA

• Export data to Excel, Access to perform analysis

Hard to get data into ERP system

Mismatch between ERP terminology and business practices

Even harder to get information out!

Tasks require inordinate patience and expertise to complete

Users should demand better usability

Navigation problems

Need to enter data repetitively

Inconsistent behavior

Cognitive complexity of query tools

Inability to get required outputTechnology

Process

People

Implementation

TIME TAKING PROCESS

Historical Data Entry

HOW TO REDUCE FAILURE?

HOW TO REDUCE FAILURE

• ERP software / support company

– Proper commitment

– Clear guidance

– Make the Language , terms used in ERP simple and easy to understand

HOW TO REDUCE FAILURE (cont’d)

• What the client can do ?

– Proper need analysis

– Train the employees

– To save your 3,000,000 put just an extra 100,000

QUESTIONS

THANK YOU