Is your ERP system still falling short? Don't just blame the software; implementation team shortcomings, turnover and inadequate funding are often bigger problems, a consultant says. But improvements can do much to minimize problems.

• Author: Sonde, Tom
• Position: TECHNOLOGY - Enterprise resource planning - Report

Not happy with your enterprise resource planning (ERP) system? You have plenty of company. Studies have reported that up to 90 percent of companies are dissatisfied with theirs. There's plenty of blame to go around: Depending on where you sit, you can point fingers at the software provider, the software selection committee, the information technology (IT) department or the user.

The favorite target for many is the software industry. Several prominent companies have a long history of over-promising and under-delivering. Most critics may be justified in their opinions, but not all system ills can be blamed on the software.

One area that receives inadequate attention is the actual implementation process. Many a problem or system shortcoming might have been avoided if the implementation team had addressed the issue properly. Perhaps many victims of ERP system problems don't point a finger at the implementation because their employees were part of the team.

Implementation Shortcomings

Most system implementation teams include finance staff members that have limited experience with large IT projects and don't know what to ask or demand. In addition, the only system they know is the old system, and for many, it's hard to visualize the new one until it's delivered.

Adding to the mix are external consultants with knowledge of the new software but limited understanding of actual business processes and even less understanding of their clients' business. Many of them believe that best practices are built into the software, and by simply delivering it, they have done their job.

In many cases, the consultants become the experts on the system--and when they leave, they take the expertise with them. Throw in problems typical to any large project--such as scope creep, a lack of resources, inappropriate resources, personnel turnover, inadequate funding and/or an unrealistic go-live date--and there's little chance that the system can perform as the software developers had planned.

There is some good news, however. There are companies that have found that by taking a second look at how their system and related processes work, they can make improvements without replacing or purchasing additional software. It's an unusual proposition that doesn't happen very often: Companies are fixing the technology they already own and have in place.

While no software solution is perfect, each having its individual shortcomings, many problems can be traced back to three key areas: 1) how well the processes were married to the technology; 2) how the system was set up; and 3) the type of...