Why do ERP, HRMS and CRMimplementations fail so often?

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Why do ERP, HRMS and CRM implementations fail so often? And tips to avoid them…

Transcript of Why do ERP, HRMS and CRMimplementations fail so often?

Page 1: Why do ERP, HRMS and CRMimplementations fail so often?

Why do ERP, HRMS and CRMimplementations fail so often?

And tips to avoid them…

Page 2: Why do ERP, HRMS and CRMimplementations fail so often?

The usual suspects …

Bad product fit

Poor change management Incapable

implementation team

Vendor inflexibility

Under estimated budgets

Bad product quality

Poor senior management

support

Page 3: Why do ERP, HRMS and CRMimplementations fail so often?

But lets dig deeper…

Some deeper ‘insights’ into the natureof Enterprise Software Products

will uncover the root reasons why decision makers take wrong approaches

Page 4: Why do ERP, HRMS and CRMimplementations fail so often?

Insight #1 : It’s a transformation, not a software installation

Would you change any regular process without

a) Verification that it is the right changeb) Concurrence of the users who are impactedc) Evaluate its benefits

In an Enterprise suite implementation, it’s a Process change tsunami..

Action Point: Manage the whole transformation, not just the Software purchase and installation.

Staff up, and budget for this.

Page 5: Why do ERP, HRMS and CRMimplementations fail so often?

Insight #2 : Identify the generic processes

Generic processes the same for everyone in your industry,or even your country and possibly globally

Financial Accounting

Payroll

Human Resources

Sales Pipeline

Action: Evaluate the best product for your budget.Prepare your team to change their processes to the products

processes and don’t ask for changes unless critical

Page 6: Why do ERP, HRMS and CRMimplementations fail so often?

Insight #3 : Identify your unique operational processes

At the surface, unique operational processes may beseem the same as everyone in your industry,

but it may not be ..

Supply ChainWork Force

Mgmt.

Sales Compensat-

ion

Social Media Initiatives

Action: Insist on getting the software to match your process, if required with a change. Eliminate vendors

who are not able to

Page 7: Why do ERP, HRMS and CRMimplementations fail so often?

Insight #4 : Identify the fatal flaws

A fatal flaw is a gap in the product that cannot be fixed by the vendor because the change with have massive

negative impact on the product

Multi-Level data security

Multi-currency

N – Level Reporting

Retrospective Pay

Action: Make your checklist of must-have capability.If the vendor cannot provide it via a change or a

non – intrusive customization, eliminate them

Page 8: Why do ERP, HRMS and CRMimplementations fail so often?

Insight # 5 : Understand what is under the hood

Most enterprise products have millions of lines of spaghetti like lines of code, which are very difficult to change unless

architected for it

Action: When you need a change, ask the vendor if thechange will affect the ability to get upgrades of the product

later. If the answer is no, watch out

Page 9: Why do ERP, HRMS and CRMimplementations fail so often?

Insight # 6 : Prepare for life cycle usage

What happens after the implementation is done? How will the product be supported for ongoing changes?

Action: If you are plan to do it in-house, look for tools that can change business rules, add new fields, upload data, build new reports, set up more alerts, set up more mail triggers,

and obtain automatic upgrades to versions. Otherwiseset up a water tight support arrangement – your business

depends on it.

Page 10: Why do ERP, HRMS and CRMimplementations fail so often?

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