Causes of ERP Failures

ERP is the acronym of Enterprise Resource Planning ( http://www.sysoptima.com/erp/erp_definition.php ). Multi-module ERP software integrates business activities across various functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP has transformed the way multi-billion dollar corporations conduct their businesses. Successful implementation of ERP systems could save tens of millions of dollars and increase employee satisfactions, customer satisfactions and sustain competitive advantages in every- changing marketplace. Corporate executives are often perplexed by the stories that how reputable corporations (Hershey Foods, etc.) have failed miserably and lost ten of millions of dollars in their ERP endures. The failures of ERP projects are preventable if we can identify the common causes of the failures regardless the companies and industries that implement them. An ERP system is the combination of ERP software, the business processes that the ERP transforms, the users of the ERP system, and the computer systems that run the ERP applications. The failures of a ERP project is often the result of the failures in one or more of those four components. The failures in computer systems (hardware and operating systems) are much easier to identify and to fix, so we'll examine the failures in software implementation, business process and user acceptance. Failure of ERP Software Implementation Module-based ERP software ( http://www.4th-media.net/order_fulfillment/ ) section of an ecommerce (