LESSONS FROM FAILURE ERP IMPLEMENTATIONS

  • Mohammad Ali Kohansal Norwegian University of Science and Technology

Abstract

Organizations need IT capability for improving their productivity. While the cost of using IT technologies is very high, the rate of IT project failure is notable as well. Organizations attempt to find solutions for decreasing the IT project cost as well as increasing chance of IT project success. This paper empirically investigates the reasons for a failed implementation of an ERP system in a company which was a member of a large holding. More importantly, the failed ERP implementation occurred after four successful experiences. By making group decision for using one ERP software and training internal implementation team, the implementation cost reduced significantly in the first four projects. Our analysis illustrates that the failed ERP implementation was due to the lack of attention to the companies-specific IT strategy. In this study, nine failure factors were identified where the lack of top management support was the most critical one. Lack of top management support was due to the reason that they believed the selected software was not suitable. The other failure factors were lack of: communication, change management strategy, explicit strategy for business process re-engineering and customization, powerful team and project management, qualified consultant, capable key user, and relevant training material.

Published
2019-11-17