Choosing to migrate physical data and some back office functions to an automated business-management-software that is, ERP implementation does present the potential of success to a business. However, many a times businesses do record some failures irrespective of how highly this technology is perceived when they adopt it.
One of the major signs exposing why an ERP implementation can fail is the inability to customise configurations and methods. Many businesses tend to overuse default configurations and methods without taking into cognisance the fact that every business is unique. A system that is not programmed to a given specifics of a business is likely to fail.
Moreover, an ERP implementation needs constant system upgrading to keep pace with the requirements of a business. Also, a lack of knowledge by staff on appropriate packages to use, over customisations and wrong alignments can indicate probable failures in the future. A business to put in place a proper team with adequate knowledge on what they are supposed to do.
Enterprise Resource Planning may fail due to the problem of under-estimating necessary resources required for the entire project. Business have a tendency to under-estimate financial and human resource requirements, only to seek reinforcements midway through projects, this often times leading to disasters. Additionally, a lack of a clear end-goal strategy can result in ERP implementation failure.