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How To Avoid ERP Failure

The document discusses reasons for ERP failure and ways to reduce failure. It summarizes that ERP systems aim to integrate all organizational data and processes, but many implementations still fail due to issues like usability problems, a mismatch between ERP terminology and business practices, and difficulties entering and extracting data. To reduce failure, the ERP software company should provide clear guidance and simplify language, while clients should perform proper needs analysis and train employees. Commitment from both sides and additional funding can help save costly ERP implementations.

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ASIF RAFIQUE BHATTI
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367 views

How To Avoid ERP Failure

The document discusses reasons for ERP failure and ways to reduce failure. It summarizes that ERP systems aim to integrate all organizational data and processes, but many implementations still fail due to issues like usability problems, a mismatch between ERP terminology and business practices, and difficulties entering and extracting data. To reduce failure, the ERP software company should provide clear guidance and simplify language, while clients should perform proper needs analysis and train employees. Commitment from both sides and additional funding can help save costly ERP implementations.

Uploaded by

ASIF RAFIQUE BHATTI
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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
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
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
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
PIFRA

Kohat Golden Gas


Cement
Users should demand better usability

Cognitive complexity of query tools Navigation problems Process

• Export data to Excel, Access to perform analysis


Tasks require inordinate patience
and expertise to complete
People
Mismatch between ERP
terminology and business
practices
Need to enter data repetitively

Technology Hard to get data into ERP system


Inability to get required output

Even harder to get information out!


Inconsistent behavior
TIME TAKING PROCESS

Implementation

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

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