When it comes to ERP implementations, it turns out that a little caution is actually well founded.  A recent study by Gartner indicated that 75% of ERP implementations fail.  Panorama Consulting’s 2017 ERP Report showed that, for the ERP implementations completed in the time frame of March 2016 to February 2017:

• 59% exceeded the timeline
• 74% exceeded the budget
• 56% experienced operational disruption

With numbers such as these, it is no wonder there is still so much fear surrounding ERP implementations.

The recent influx of new players in the ERP space, along with a shift in technology toward cloud-based solutions, has definitely changed the game for clients looking to implement ERP.  The number of ERP options available today is far greater than it has ever been, but along with that has come a proportional increase in the level of client confusion, which is at least partly to blame for some of the recent ERP failures.  While that confusion is a relatively new contributor to ERP failures, there are two failure reasons that have been at or near the top of the list for as long as ERP systems have been around, namely:

• Inadequate Organizational Change Management (OCM)
• Poor Master Data (MD) quality

The answer may lie in the approach.  In traditional ERP implementation projects, the organizational change management (OCM) and master data (MD) activities commence only after the ERP Solution Provider is brought on-board.  The ERP Solution Provider generally directs all project activities, but overall project delivery is very much a shared responsibility, with the Solution Provider typically handling the technical build, and the client doing most of the heavy lifting in the areas of OCM and MD.  There is no doubt that a good, experienced, ERP Solution Provider is worth their weight in gold, but you may need a lot of gold, because they don’t come cheap!  Consequently, what so often happens is, the client asks the Solution Provider to fast-track the project as much as possible, to minimize the spend.  The typical response from the Solution Provider is: “We can go faster, if you can keep up with the OCM and MD activities.”  Unfortunately, since “you don’t know what you don’t know”, many clients underestimate the enormity of the OCM and MD activities, and in short order, a deal is struck to compress the timeline, which unwittingly puts the client in a bind before they even get started.

ERP Optimization TRACC offers manufacturers a new and innovative approach for preparing for an ERP implementation.  With ERP Optimization TRACC, you, the client, implement actions, in your current legacy environment, that help instill the key principles and behaviors that will enable you to thrive in an ERP environment.  You set the pace, and you drive the activities, thereby affording your organization an opportunity to learn and adjust to life in an ERP environment BEFORE going all in and actually taking the ERP plunge. This approach helps your organization naturally build the kind of internal ERP capability and understanding, before go-live, that many organizations only acquire after years of operation. With ERP Optimization TRACC, you will know when it is the right time to pull the trigger on an ERP implementation, and you will be well positioned for success!