What are the reasons of ERP software getting failed ?

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Today ERP software is the part of MIS ( Management Information System ) which is the designed cloud software package of designing and understanding the operational flow of the organization. Today this post is based on the most crucial fact that what are the reasons which makes an ERP software unsuccessful in an organization or educational institute. We will try to understand the answer of the question by taking a case study of BMC and Foxmeyer ERP system implementation.

First understand the introduction of BMC -

BMC software is the American technology company of worth USD 2 billion, which is the most considerable company in the field of providing digital assistance to the businesses in performance management, database management & optimization, data center optimization, virtual operational life cycle management etc. It is established company since september 1980. Today it is providing its services to 82% of fortune 500 companies.

BMC software failed for two times in implementation of their ERP software, but third time they got succeeded. There were following reasons which were responsible for the failure of the BMC software failures -

  • No customer centric strategy, because the complete software was based on performing processes faster, not on quality of operations.

  • Not much top management involvement and support

  • No support from the side of organization employees to improve the optimization of delivery.

  • There were no attention paid to the required changes to be performed in the software source code.

There were following improvements performed which were the success reasons of ERP and CRM implementation -

  • It made the team of 175 employees which called the champions of the team and they defined the system requirements properly

  • They also communicated the benefits to the clients.

  • They also showed that how will the ERP modules will coordinate in the customer requirement fulfillment and attain its job goals.

  • They were able to get their ERP system in the way that can reduce the overall risk that can affect the entire company.

Fox Meyer case study -

Fox Meyer is the 4th largest drug investor in the USA which is total worth of 5 million dollars. They launched their ERP system in 1993 which got failed due to following reasons -

  • The ERP software was implemented only in the 6 out of 23 warehouses.

  • It could revert hardly to the old work system of the company.

  • The interface and coordination was not correct between the old and new user interface.

  • There were incorrect product shipments which did cost at extra level.

  • The company considered it the failure of management, not the failure of automation.

Conclusion-

From the given case studies it has been proven that when an ERP software gets fail it does not have the implication on top management but also to the overall workforce and work-culture. So it is needed to implement the ERP software package with the best redeemable practices that could be connected to the current organization and business scenario.

 

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