Over 90% of ERP replacement projects are failures to some degree. While the worst failures get published especially when they end up in court or involve public money, partial failures are far more common but far less visible. The problem's widespread nature is difficult for software buyers to appreciate because people are reluctant to discuss their failures.

Project outcomes scale

Ultimately there is only ONE reason why ERP replacement projects fail: they don't meet expectations.

The success of most ERP replacements lies somewhere on the scale of 1 to 6 below. Only about 10% of projects achieve a success level of 1. A few experience the ultimate failure of 6. Most projects fall somewhere in the middle.

  1. The new ERP meets or exceeds expectations. The project was completed on budget and on time.

    • The new software fully meets user expectations.

    • Excel hell has been conquered.

    • Business goals are being achieved as planned.

  2. The new ERP took too long to implement and cost too much, but it does work as expected.

    • Market opportunities were missed, like not being ready for holidays.

    • Regulatory deadlines were missed triggering financial penalties.

  3. The new ERP only partly meets expectations.

    • Cost savings do not materialize.

    • ROI is well below that used to justify the purchase.

  4. Business disruption when going live.

    • The bottom line and the stock price were hammered.

    • Some senior employees lost their jobs over the debacle.

    • After struggling to use the new software for a few years, the company decided to replace it.

  5. The new ERP never went live because it was such a poor fit.

    • Implementation had so many problems that the new software never went into production.

    • The project was a total loss.

  6. The ultimate failure: bankruptcy

    • The new software disrupted the business operations so much that it went bankrupt.

Who is to blame for a software failure?

When a software implementation runs into trouble, buyers blame anybody but themselves. However, ERP replacement projects are far more difficult than people realize, and the root cause of failures is invariably in the shortcuts taken.

Make a successful ERP replacement

Only about 10% of ERP replacements meet expectations. If you want to be part of the elite 10%, click the [Contact Wayferry] button below. Let’s explore if we can help you successfully replace your ERP software so you can execute your strategy and achieve your business goals.