ERP integration projects are among the most critical and complex initiatives an organization can undertake. Yet, failure rates and significant overruns remain high, with affected organizations regularly identifying the same recurring risk factors. This series of articles takes an in-depth look at each of the seven major risks that condition the success of an ERP implementation, offering a concrete breakdown of how they manifest and the preventative measures to take.
Change management determines the success of an ERP project. Without a tailored strategy, passive resistance, parallel maintenance of legacy processes, and data entry errors compromise data quality and overall productivity. Involving users from the outset, training teams, and appointing business ambassadors ensure system adoption while safeguarding workplace morale.
Lack of executive leadership engagement is a primary cause of ERP project failure. This critical risk leads to delays, budget overruns, and organizational resistance. To ensure success, companies must establish structured governance, track key performance indicators, and assign explicit sponsorship responsibilities to executives.
