Reasons for ERP Implementation Failure:

The ERP implementation fails due to the following reasons :

a. Absence of an executive sponsor: Since ERP crosses functions within a company, the implementation needs someone with an authority to bring various functional executives together. There should be people, directed and devoted towards the project.

b. When the project is viewed as an IT effort or as an effort towards automating finance/manufacturing supply-chain, etc.

c. While there is no full-time project manager for ERP implementation.

d. While the IT people start taking decisions in ERP implementation due to dominant role in handling hardware/software/communication, etc. : As a matter of fact, generally they lack understanding of the function requirements.

e. Lack of documentation of implementation procedure.

f.  Lack of internal communication by top executive about project implications.

g. Lack of vendor support and team work.

h. Massive change and unmanageable transformation without proper grasping by employees.

i.  Lack of re-engineering attempt and insistence on continuation of current practices.