How to avoid ERP failure ?

WHAT IS ERP?
• Enterprise Resource Planning systems
(ERPs) aim to integrate all data and
processes of an organization into a unified
system

• Software and hardware for integration

• Key ingredient
unified database
various system
WHAT IS ERP?
 The ERP Market

• ERP market dominated by SAP, Oracle,

Microsoft worth USD 40 billion
 The ERP Market
• SAP is the biggest and most popular
– Founded in 1972 by five ex-IBM
employees, by 2005, there were
100,600 installations worldwide, with
over 25 industry-specific modules in the
SAP portfolio.

• Founded in 1977, Oracle were first to

market a reliable relational database. The
second largest software company after
Microsoft
 WHY ERP ?

“Insanity is doing the same

thing over and over again
and expecting different
results…”
Albert Einstein
 WHY ERP ?

– Data and process

integration

– Single view of the data

– No Duplicated Efforts

– Current Technology
 Failure
• Still Many implementations of
ERP systems fail

• We conducted this research

to find out the reasons of this
failure..
 The Research

Fortress
Products
D.G Khan
Cement
PIFRA

Kohat Golden Gas

Cement
 Users should demand better usability

Cognitive complexity of query tools Navigation problems Process

• Export data to Excel, Access to perform analysis

Tasks require inordinate patience
and expertise to complete
People
Mismatch between ERP
terminology and business
practices
Need to enter data repetitively

Technology Hard to get data into ERP system

Inability to get required output

Even harder to get information out!

Inconsistent behavior
TIME TAKING PROCESS

Implementation

Historical Data Entry

HOW TO REDUCE FAILURE?
 HOW TO REDUCE FAILURE
• ERP software / support company

– Proper commitment

– Clear guidance

– Make the Language , terms used in ERP

simple and easy to understand
 HOW TO REDUCE FAILURE
(cont’d)
• What the client can do ?

– Proper need analysis

– Train the employees

– To save your 3,000,000 put just an extra

100,000
QUESTIONS
THANK
YOU