Erp Failures Netsuite

As organizations grow and emerge into global markets, the dynamics as well as operations become very complex. There is an abundant amount of data available, multiple operational processes such as forecasting, sourcing, production, etc., and a requirement for constant communication that must be incorporated together effectively to gain a competitive advantage and succeed within an industry. Complex and large scale organizations will all at some point experience: functional mistakes, communication breakdowns, and other operational issues. One way to achieve better efficiency is with the implementation of an Enterprise Resource Planning (ERP) system.

ERP is not productivity software but is a single software system that is used by an entire organization to manage all functional areas (production, marketing, accounting, etc.) and aspects of operation. Providing accurate real-time information, consistent communication, appropriate resources, and reductions in redundancy as well as human error are just some of the advantages an ERP system can provide. Companies such as SAP, Oracle, Microsoft, and others create and sell ERP systems. Many of these corporations assist or consult regarding the implementation of the software. There are also third-party consulting companies whom can be hired to consult on ERP implementation. Although, every organization is unique and might require some software modifications to accommodate strategic or organizational preference, ERP systems are designed using “best practice” processes that are recommended so too much customization will not only prolong implementation and increase costs but also raise the likelihood of cross-functionality issues. The benefits of a successful ERP implementation are touted by authors Traci Barker and Mark Frolick in a case study entitled “Implementing ERP” (43) but an almost 50% failure rate promotes how risky an endeavor this type of project can be.

Implementation of an ERP system is a complex and...