Addressing ERP Reliability Challenges for Managers

ERP projects keep failing. But not for the reasons you think. In my 25 years of ERP implementations, I’ve seen 50+ projects fail miserably. Here are 8 challenges no one warns you about (and how to overcome them): 1. 𝐀𝐫𝐭𝐢𝐜𝐮𝐥𝐚𝐭𝐢𝐧𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐌𝐨𝐝𝐞𝐥𝐬 𝐭𝐨 𝐒𝐈𝐬 Most manufacturers assume their SI “gets it.” They don’t. Translating your ops into tech isn’t their job. It’s yours! → Create a “business blueprint” document that outlines critical processes, KPIs, and unique workflows before the SI even starts. 2. 𝐓𝐡𝐞 𝐓𝐞𝐚𝐦 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐯𝐬. 𝐐𝐮𝐚𝐧𝐭𝐢𝐭𝐲 𝐃𝐢𝐥𝐞𝐦𝐦𝐚 Big budgets don’t mean big results. → Instead of bloating your team, invest in a few A+ players who know your systems inside out. → A lean, sharp team will outpace a large, disconnected one every time. 3. 𝐅𝐮𝐭𝐮𝐫𝐞-𝐏𝐫𝐨𝐨𝐟𝐢𝐧𝐠 𝐟𝐨𝐫 𝐂𝐥𝐨𝐮𝐝 The ERP landscape is moving to the cloud, and ignoring this shift is risky. → During vendor selection, evaluate the scalability and adaptability of their cloud solutions. → Focus on modular architectures that can evolve with your business rather than locking into rigid legacy systems. 4. 𝐂𝐡𝐚𝐧𝐠𝐞 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐁𝐥𝐢𝐧𝐝 𝐒𝐩𝐨𝐭𝐬 Resistance to change isn’t just inevitable—it’s predictable. → Don’t rely on generic training sessions. Tailor change management initiatives by team and role. → Invest in “process champions” from each department to act as internal advocates and troubleshooters. 5. 𝐃𝐚𝐭𝐚 𝐌𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 Dirty data leads to bad decisions. → Start cleansing and validating your data before the project officially kicks off. → Run pilot tests on smaller datasets to identify issues early. → Make data governance an ongoing effort, not a one-time task. 6. 𝐔𝐀𝐓 (𝐔𝐬𝐞𝐫 𝐀𝐜𝐜𝐞𝐩𝐭𝐚𝐧𝐜𝐞 𝐓𝐞𝐬𝐭𝐢𝐧𝐠) 𝐌𝐢𝐬𝐬𝐭𝐞𝐩𝐬 Most teams treat UAT as a box-checking exercise. It’s not. → Design UAT with two phases: (1) functional testing to validate individual workflows, and (2) end-to-end testing to uncover interdepartmental gaps. → Simulate edge cases to prepare for real-world scenarios. 7. 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐓𝐞𝐬𝐭𝐢𝐧𝐠 𝐔𝐧𝐝𝐞𝐫 𝐏𝐫𝐞𝐬𝐬𝐮𝐫𝐞 ERP systems can buckle under real-world transaction volumes. → Include stress tests in your performance testing phase to simulate peak loads. → Ensure you test in a near-production environment, not an idealized sandbox. 8. 𝐏𝐨𝐬𝐭-𝐆𝐨-𝐋𝐢𝐯𝐞 𝐂𝐡𝐚𝐨𝐬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 Most companies think the job ends at go-live. It doesn’t. → Implement a stabilization phase, typically 3-6 months, where a dedicated team handles issues, monitors performance, and fine-tunes processes. → Pre-define escalation paths for quick resolution of critical problems. ERP implementation isn’t just a tech project; it’s an organizational transformation. What’s been your toughest ERP challenge? Let’s discuss below. Follow Shobha Moni to get the best out of your favourite ERP systems.

𝗧𝗵𝗲 𝗖𝗜𝗢 𝘄𝗵𝗼 𝗸𝗶𝗹𝗹𝗲𝗱 𝗮 $𝟭𝟮𝗠 𝗘𝗥𝗣 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝘄𝗮𝘀𝗻'𝘁 𝗶𝗻𝗰𝗼𝗺𝗽𝗲𝘁𝗲𝗻𝘁. 𝗛𝗲 𝘄𝗮𝘀 𝗷𝘂𝘀𝘁... 𝗯𝘂𝘀𝘆. A few months ago, I watched a manufacturing CIO explain to his board why their Oracle implementation was 4+ months behind schedule... "I've been integrating systems from our recent acquisitions, and dealing with critical bugs in our technology product. The ERP team has been handling things." The "ERP team" was an inexperienced team of business stakeholders making million-dollar decisions. Here's how the timeline usually plays out: Week 1-12: Executive engagement starts strong... CIO attends steering meetings, asks good questions, makes decisive calls on scope disputes. Week 13-28: Business crises emerge. Acquisition opportunity. Major customer complaint. Supply chain fire drill. ERP meetings get rescheduled or delegated. Week 29-52: Project team is now making architectural decisions that will define the next decade of business operations... 𝗪𝗶𝘁𝗵𝗼𝘂𝘁 𝘁𝗵𝗲 𝗽𝗲𝗿𝘀𝗼𝗻 𝘄𝗵𝗼 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝘀 𝘁𝗵𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆. The result? Technical success, business failure. I've seen this exact pattern destroy millions in projected ROI that companies expected from their ERP upgrade... Not because the technology failed... Because 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗮𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗴𝗼𝘁 𝘀𝗽𝗹𝗶𝘁 𝗮𝘁 𝘁𝗵𝗲 𝘄𝗼𝗿𝘀𝘁 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲 𝗺𝗼𝗺𝗲𝗻𝘁. Here are the three decisions that can't be delegated: → Integration vs. customization trade-offs (affects scalability for 10+ years) → Data migration scope and quality standards (determines operational reliability) → Change management investment levels (drives user adoption and ROI) When these decisions get pushed down to project managers or business teams, you get systems that work perfectly fine... But for problems you don't actually have. 𝗛𝗲𝗿𝗲'𝘀 𝘄𝗵𝗮𝘁 𝘀𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗹𝗼𝗼𝗸 𝗹𝗶𝗸𝗲: The CIO treats ERP leadership like merger integration...  • Non-negotiable calendar priority  • Weekly deep-dives  • Personal accountability for outcomes Because that's exactly what it is: 𝘆𝗼𝘂'𝗿𝗲 𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝗵𝗼𝘄 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝘄𝗼𝗿𝗸𝘀 𝗮𝘁 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗳𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹 𝗹𝗲𝘃𝗲𝗹. 𝘌𝘹𝘦𝘤𝘶𝘵𝘪𝘷𝘦 𝘢𝘵𝘵𝘦𝘯𝘵𝘪𝘰𝘯 𝘥𝘶𝘳𝘪𝘯𝘨 𝘌𝘙𝘗 𝘪𝘮𝘱𝘭𝘦𝘮𝘦𝘯𝘵𝘢𝘵𝘪𝘰𝘯𝘴 𝘪𝘴 𝘵𝘩𝘦 𝘥𝘪𝘧𝘧𝘦𝘳𝘦𝘯𝘤𝘦 𝘣𝘦𝘵𝘸𝘦𝘦𝘯 𝘥𝘪𝘨𝘪𝘵𝘢𝘭 𝘵𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘦𝘹𝘱𝘦𝘯𝘴𝘪𝘷𝘦 𝘥𝘪𝘨𝘪𝘵𝘢𝘭 𝘥𝘦𝘤𝘰𝘳𝘢𝘵𝘪𝘰𝘯. 𝘐𝘧 𝘺𝘰𝘶𝘳 𝘭𝘦𝘢𝘥𝘦𝘳𝘴 𝘢𝘳𝘦 𝘴𝘵𝘳𝘦𝘵𝘤𝘩𝘦𝘥 𝘵𝘰𝘰 𝘵𝘩𝘪𝘯 𝘵𝘰 𝘭𝘦𝘢𝘥 𝘵𝘩𝘦 𝘪𝘮𝘱𝘭𝘦𝘮𝘦𝘯𝘵𝘢𝘵𝘪𝘰𝘯, 𝘺𝘰𝘶'𝘳𝘦 𝘯𝘰𝘵 𝘳𝘦𝘢𝘥𝘺 𝘵𝘰 𝘪𝘮𝘱𝘭𝘦𝘮𝘦𝘯𝘵. How are you structuring executive accountability for your current implementation?

Your ERP didn’t fail because of integration issues. Your ERP didn’t fail because of missing features. Your ERP failed because your people didn’t trust it. Your finance team didn’t trust the numbers. Your ops team didn’t trust the workflows. Your leadership didn’t trust the reports. Most ERP issues aren’t technical. They’re about trust. Here’s what happens when trust breaks down: - Adoption drops to below 40% - Reporting becomes fragmented - Manual workarounds creep back in - Teams build shadow systems in Excel And, then… Blame shifts from “process” -> “platform.” And that’s when your $XX million system becomes a $XX million mistake. But here’s how real trust is built: 1/ Involve users from day 1, not just after go-live 2/ Validate and clean data, trust starts with accuracy 3/ Reinforce quick wins, show the value early and often 4/ Provide hands-on training, and confidence drives adoption 5/  Keep communication open, trust grows when feedback flows ERP transformation is not just about the system It’s about the people using it Fix the trust And the tech will perform Agree?

Most ERP rollouts fail—not because of tech, but hidden roadblocks nobody talks about. Our blueprint for breaking through them ↓ 1. Change Resistance: People fear the unknown. Address concerns early. Involve key stakeholders from day one. Communicate benefits clearly and consistently. 2. Data Migration Nightmares: Clean your data before migration. Map fields meticulously. Test, test, and test again. 3. Customization Creep: Stick to out-of-the-box features when possible. Evaluate each customization request critically. Remember: More customization = More complexity. 4. Training Oversight: Invest heavily in user training. Create role-specific guides. Offer ongoing support post-launch. 5. Scope Expansion: Define clear project boundaries. Use a phased approach. Resist the temptation to add "just one more thing." 6. Leadership Misalignment: Secure executive buy-in early. Establish a clear project champion. Keep leadership engaged throughout the process. 7. Resource Underestimation: Plan for the long haul. Budget for unexpected costs. Don't skimp on expert consultants. Navigating these roadblocks requires experience. We've guided countless businesses through successful ERP implementations. Take the first step toward transforming your ERP rollout into a game-changing success. Let's talk.

McKinsey's ERP warning for CFOs: 1. 70% of ERP transformations fail     Most ERP projects run over budget and underdeliver. Why? Because companies underestimate complexity. Finance expects a big bang switch. Instead, they get endless data cleanups, mismatched chart of accounts, and broken workflows. In finance, a 90% rollout isn’t a win. If one close process breaks, the whole system stalls.     2. It's your design, not your tech     CFOs blame vendors. But the real issue is design. Too many teams lift-and-shift old processes into new systems. That hardcodes inefficiency. The 30% who succeed don’t copy the past. They redesign approvals, reconciliations, and controls before go-live. ERP isn’t a tool migration. It’s an operating model redesign.     3. Finance feels the pain first     In sales, if CRM misses a field, people workaround. In finance, if ERP misses a journal entry, you misstate results. Month-end closes, audits, and compliance magnify every flaw. That’s why ERP failures show up in finance before anywhere else. Unless you engineer accuracy and reliability from day one, the CFO’s credibility is at risk.     4. The gap turns critical     McKinsey calls it out: 70% stuck, 30% pulling ahead. The stuck companies run digital systems that replicate legacy pain. The winners embed automation, shared data models, and continuous improvement. Over time, that gap compounds into faster closes, lower costs, and better decision-making.     TAKEAWAY ERP failures don’t just cost money at go-live. They lock in inefficiencies for years. Every close takes longer. Every audit is harder. Every board deck gets delayed. The reverse is also true. When ERP is designed right, benefits compound: - Faster closes free capacity - Automation creates leverage - Cleaner data sharpens insight The real gap isn’t visible at launch. It shows up quarter after quarter, year after year.

Why Do 70-75% of ERP Implementations Fail? The "Three C's" That Organizations Must Manage Enterprise Resource Planning (ERP) systems are essential for improving efficiency, yet 70-75% of implementations fail. Common reasons include immature data, poor requirements, complex legacy systems, and over-customization. Suppliers often oversell benefits and underestimate the effort required. However, technical challenges can usually be resolved with time and expertise. The real issues lie in what I call the "Three C's" of ERP implementations, which organizations must manage internally. The Three C's of ERP Implementations: 1.    Capacity Organizations often struggle to balance ERP implementation with regular operations. Underestimating the workload leads to resource strain, missed deadlines, and project failure. It's vital to assess and allocate resources effectively to handle both ERP tasks and daily operations. 2.    Capability Success requires the right people making informed decisions. Beyond project managers, organizations need experienced functional and process owners. Poor decision-making due to lack of expertise often derails projects, so placing the right talent in key roles is essential. 3.    Change Management Many ERP systems fail due to poor change management. Employees often resist new processes, especially if they’ve used legacy systems for years. Without proper training and support, staff may revert to inefficient methods. Strong change management ensures smooth transitions and user adoption. Overcoming the Three C’s with an Organizational Readiness Assessment To successfully manage the "Three C's," organizations should conduct an "Organizational Readiness Assessment" before even the implementation even starts - at the time of strategy planning. This process evaluates resource capacity, decision-making capabilities, and change management plans. Identifying and addressing gaps helps ensure the organization is ready for ERP implementation. Conclusion ERP failures often stem from internal challenges rather than technical ones. The "Three C's"—Capacity, Capability, and Change Management—are critical factors that organizations must manage to ensure success. By conducting an Organizational Readiness Assessment and addressing gaps, companies improve their chances of successful ERP adoption. Ultimately, ERP success depends, amongst other things, on whether the organization is prepared for the change.

Top 6 Challenges That Block ERP Transformations and How to Fix Them 💡 Transformations often struggle for the same reasons. In my experience, leaders who understand these challenges and take early action make the difference. ▶️ No Clear Business Case or Direction Without a clear direction like "SAP Standard first" and a top-down mandate, teams often get lost in debates about SAP’s general capabilities or technical details. Top management, together with business project managers, should ensure the "standard first" focus and the need for fast progress are communicated consistently. Internal newsletters or platforms like Viva Engage are popular ways to show that top management fully supports the strategy. ▶️ Weak Executive Sponsorship Without visible and active support from top management, momentum fades. Business project management should actively involve and engage sponsors. Use SteerCos to keep decision-makers informed and involve them directly in tackling key challenges. ▶️ Poor Data Readiness The business must take ownership of its data. Make it clear: Bad data leads to bad operations, regardless of how good the system is. All leaders, both line managers and transformation leads, should encourage ongoing data cleansing and preparation right up to go-live. ▶️ Resistance to Change Choose your team carefully. Business veterans who built highly tailored legacy systems may struggle with a standard-first mindset. In some cases, younger team members can be a better fit. SAP consultants must be able to explain standard processes in simple business terms. Prioritize consultants with strong communication skills over purely technical depth. Business project managers should actively drive change, ideally in partnership with experienced change management experts. Their role is to help shape the mindset of the target organization, not just deliver tasks. ▶️ Too Many Custom Modifications Stick to the standard wherever possible. Establish clear rules for exceptions, such as compliance or legal requirements. All other requests should be backed by a clear business case with measurable ROI. Business project managers should lead fit-to-standard discussions and push back on customizations that don’t add real value. ▶️ Unnecessary Complexity Instead of focusing on how SAP Standard can be used to run daily business, workstream leads often allow discussions to drift toward edge cases or academic evaluations of what might be technically possible. Evaluations should always focus on core business processes, with quick progress and results at the center of activities. All leads should push for that at any time. What’s your view? Are there other key blockers or success factors you've seen?

This is what I once asked a factory owner and he burst out laughing. “When you buy a new machine for the shop floor, do you pick the cheapest one?” “Never,” he shot back. “Downtime alone would wipe out a day's output. We obsess over uptime, service SLAs, spares availability, and 5-year ROI.” One more: “Then why do companies bet their entire operation, finance, inventory, production, sales, on the cheapest ERP?” He paused. The surprising part, we signed that week. 18 years in, I've learned ERP isn't software; it's your operational nervous system. Here's the crux that most people ignore: 57% of ERP projects overrun budgets by 50%+; 63% overrun timelines. And this isn’t just me, it’s industry reports claiming. And this isn’t because software is bad, it's because "cheap" means no industry muscle for BOMs, batch traceability, multi-plant visibility, or distributor schemes. Silent killers: ERP "downtime" hides as inventory bloat (up 15-20%), order delays (10-15% cycle slip), finance reconciliations eating weeks. Margins bleed quietly. Now, this is something that you can refer to: Ask "How much inefficiency does this remove?" Reliable ERP cuts inventory 5-10%, speeds closes 3 days, or they have robust data to show. But if you end up getting generic answers Get it !! You're their experimentation ground. This is my reflection on what I’ve often heard from clients: When they focus on price → 3 years later→ Outgrown→ Migrating (2x cost). When they focus on depth → scaled to 5x revenue→ zero drama. Cheap ERP equalises deferred destruction. As an owner, you are building infrastructure, not experiments. Team #EAZY has unpacked it fully, in the recent blog: "Affordable ERP vs Reliable ERP: Hidden Costs for Manufacturers." Link in comments 👇 Founders: What's your ERP north star, cost or compound ROI? DM to chat war stories. #ERPStrategy #BusinessSystems #DigitalTransformation #ERPLeadership #ManufacturingERP

Disengaged business process owners can screw your new ERP. I worked on a large ERP implementation at an enterprise client with $700 million revenue. The project was planned to complete in 12 months and took 24 instead. Surprised? How did that happen? Well, first of all unrealistic expectations and underestimation of technical difficulties in integrations and data conversion. What else? Poor support from businesses process owners. These are middle management guys who should be heavily involved on a project: ·      Allocate stakeholders and SMEs ·      Give them the right priority ·      Advocate for the change ·      Make critical decisions regarding the solution On this particular project the BPOs were not fully onboard. They did not openly express their disapproval but they silently sabotaged and delayed project assignments for their teams. As the result certain teams did not deliver on time and the whole project got delayed. Contractors were blamed for this and kicked out of the project. Client cannot be wrong 😊 Then the project sponsor did a beautiful thing. He called for a big meeting where he invited the president of the company, C-suite, and all the BPOs. Then he made a presentation explaining why they are doing the ERP implementation, what benefits it will bring, and what will happen if they stay with legacy. Then he gave a word to the president who supported him in front of everybody. The big boss also mentioned that those who do not fully support the project will leave the company. And it worked! In the next 9 months the whole initiative when smoother with the necessary intervention from the middle management. And they finally went live. I would say it was quite an authoritative approach. What else can be done: 1.      Understand the reasons for disengagement. Conduct interviews. Find resistance points. 2.      Highlight benefits for their roles, not the organization. 3.      Engage them into the decision making. 4.      Address concerns from point #1. 5.      Create incentives and include them into their performance plan. Moral of the story: Disengaged stakeholders can jeopardize your ERP implementation. But there is a way to engage them. Try this ☝️ and chill.   #ERP   #TheERPGuy     #ERPImplementation