Why did the company dump $100K ERP into a ditch?

ERP: Enterprise Resource Planning

The company’s IT consultant and manager (owner) purchased ERP software for $100,000. We thought that they did thorough research including the company’s system requirement and the software program functionality Later, they found out that the ERP software does not meet the system requirements and they abandoned it.

More than 30% of ERP implementation failed in the past and they gave up. The cost overrun over the budget is approximately 90%.

This story tells us that before we make decisions on which ERP system fits the system requirements, we have to check: the system requirements, ERP functionality, the ERP implementation teams and schedules including training and total costs (ERP program price, implementation costs, employee training, learning time). The wrong decision could cost millions of dollars.

But we have a lot of success stories on ERP implementation with the solid plan and professional services. If you need information on ERP, please contact us. Changing an ERP system is not just about buying a software, it is changing how you run your business.

OpenAxis, Inc. is a company specialized in ERP implementation, which has more than 30 years of experiences in management consulting--IT and accounting-- in the United States.