Enterprise Software Implementation

Why Do 70-75% of ERP Implementations Fail? The "Three C's" That Organizations Must Manage Enterprise Resource Planning (ERP) systems are essential for improving efficiency, yet 70-75% of implementations fail. Common reasons include immature data, poor requirements, complex legacy systems, and over-customization. Suppliers often oversell benefits and underestimate the effort required. However, technical challenges can usually be resolved with time and expertise. The real issues lie in what I call the "Three C's" of ERP implementations, which organizations must manage internally. The Three C's of ERP Implementations: 1.    Capacity Organizations often struggle to balance ERP implementation with regular operations. Underestimating the workload leads to resource strain, missed deadlines, and project failure. It's vital to assess and allocate resources effectively to handle both ERP tasks and daily operations. 2.    Capability Success requires the right people making informed decisions. Beyond project managers, organizations need experienced functional and process owners. Poor decision-making due to lack of expertise often derails projects, so placing the right talent in key roles is essential. 3.    Change Management Many ERP systems fail due to poor change management. Employees often resist new processes, especially if they’ve used legacy systems for years. Without proper training and support, staff may revert to inefficient methods. Strong change management ensures smooth transitions and user adoption. Overcoming the Three C’s with an Organizational Readiness Assessment To successfully manage the "Three C's," organizations should conduct an "Organizational Readiness Assessment" before even the implementation even starts - at the time of strategy planning. This process evaluates resource capacity, decision-making capabilities, and change management plans. Identifying and addressing gaps helps ensure the organization is ready for ERP implementation. Conclusion ERP failures often stem from internal challenges rather than technical ones. The "Three C's"—Capacity, Capability, and Change Management—are critical factors that organizations must manage to ensure success. By conducting an Organizational Readiness Assessment and addressing gaps, companies improve their chances of successful ERP adoption. Ultimately, ERP success depends, amongst other things, on whether the organization is prepared for the change.

You know what every prospect hates? Writing a six figure check for software they won’t use for 15 months. That’s why long implementations kill urgency. Imagine telling a friend, “Pay $200/month for this gym, but you won’t see results for a year.” They’ll laugh in your face and drink a milkshake (™️ Daniel Plainview). Enterprise software buyers think the same way. They don’t buy based on the go-live date. They buy based on when they start seeing value. So, sell that. Here’s how: 1. Sell the first mile, not the finish line. Nobody cares about “fully implemented” if the first milestone is 15 months away. - Show value in 60 days. What’s the first tangible benefit they’ll get? Make it clear. - Create early wins. Instead of “You’ll get full automation in Q4,” say, “Your team will save 5 hours/week by month two.” - Sell the journey. “At 90 days, you’ll have X. By 6 months, you’ll see Y. By go-live, you’ll have a bulletproof system.” 2. Break the project into phased rollouts. A 15 month all-or-nothing launch is a CFO’s worst nightmare. - Start small. Pilot with one team, region, or department before full rollout. - Milestone-based expansion. Make sure there’s a measurable win before the next deployment wave. - Get stakeholders involved early. More buy-in = fewer surprises = fewer excuses to delay. 3. Give CFOs a reason to say yes now. Sticker shock isn’t just about cost - it’s about paying before they see ROI. - Ramped billing. Year 1 is lower, increasing as usage scales. - Deferred start dates. Lock in today’s pricing, but let them pay when they’re ready. - Subsidized implementation. Instead of discounts, position it as an investment in their success. “We’re covering $X in setup costs so you hit ROI faster.” Enterprise buyers don’t have time to wait 15 months for results. Sell the path to value, not the finish line. Otherwise, you’re just asking them to fund your project, not their success.

Software implementation can make or break business transformation. The right approach ensures success, while the wrong one leads to delays, cost overruns, and frustration. Here’s what works: ✅ Clear Goals & Scope - Define objectives, deliverables, and success metrics early. Control scope creep. ✅ Agile Over Rigid Plans - Plan well, but stay flexible. Adapt to challenges without derailing progress. ✅ Stakeholder Alignment - IT, business teams, and users must collaborate for smooth adoption. ✅ Strong Change Management - Technology alone isn’t enough. Train users early and manage resistance. ✅ Risk Mitigation - Identify technical, operational, or cultural risks and have solutions ready. ✅ Measurable Milestones - Break work into phases, track progress, and adjust as needed. Good project management isn’t just about meeting deadlines. It’s about delivering real business value.

ERP implementation brings significant changes to your organization and managing this change effectively can make or break your project. Here’s a guide to managing change during ERP implementation: 1. Develop a clear change management plan. Outline the scope, objectives, and timeline of your ERP project. This plan acts as your roadmap for a smooth transition. 2. Engage leadership and stakeholders. Secure commitment from top management and key stakeholders. Their support is essential for driving organizational change. 3. Communicate effectively. Keep all employees informed about the implementation process. Transparent communication builds trust and reduces resistance. 4. Provide adequate training. Offer training programs tailored to different user roles. Well-trained users are more likely to embrace the new system. 5. Monitor progress and gather feedback. Track the implementation process and make adjustments as needed. Collect feedback to identify and address pain points. With these strategies, you can manage change effectively and ensure a successful ERP implementation. Effective change management leads to smoother transitions, higher user adoption, and better business outcomes. 📌 Need expert guidance on managing change during your ERP project? Send me a message.

Many of our clients are either going through or preparing for an ERP implementation. Having seen these programs across industries—the good, the bad, and the ugly—one piece of guidance I always give: Co-source your ERP implementation from the start. Too often, companies rely solely on one firm to lead the program, only to realize that technical implementation alone won’t drive success. The larger the company, the more critical it is to take a balanced approach. Here’s what we recommend: Firm 1: System Integrator – Focuses on the ERP’s technical implementation, including system configuration, data migration, and integration. Firm 2: Business Integrator – Ensures the system and related business processes align with transformation goals, operating model optimization, and benefits realization. This co-sourcing model de-risks the program, ensures technical and business alignment, and delivers a system and processes that are fully integrated and built for long-term success. The image below highlights some of the key benefits we’re seeing in co-sourced ERP programs where we serve as the Business Integrator. A hill I’m willing to die on—co-source your ERP program.

55% - 70% of ERP implementations fail to meet business objectives. Not because of the technology — but because teams lose sight of the bigger picture. You invest millions in new enterprise systems hoping for: • Better operational efficiency • Streamlined processes • Improved decision-making • Reduced costs But within months, you’re dealing with: • Inventory allocation issues • Process disruptions • Team frustration • System optimization challenges Here’s what often goes wrong: ERP implementation is treated as a technology project rather than a business transformation. The reality? Technology is just 30% of the equation. The other 70% comes down to: • Clear vision and strategy alignment • Change management and team adoption • Process integration and optimization • Data migration planning • Proper project management • Buy-in*** When implementing enterprise systems, it's best to remember your teams will be managing dual systems, learning new processes, and adapting to completely new ways of working – all while trying to maintain business as usual. That’s why organizational buy-in, setting the right expectations, and good planning are so key. New ERP integration on your 2025 technology roadmap? My advice? Talk to a Solutions Integrator with experience leading complex digital transformation projects. At Anatta, we bake thoughtful change management processes into every major transformation. I'd be happy to offer you guidance on this. Just comment below or send me a DM. #ecommerce #technology

Surprising Facts About SAP Implementation Projects. While many know SAP as a leading ERP solution, there are a few uknowns about implementing it that can make or break a project. Here are few facts you might not know: -> Its More Than Just Software: SAP implementation isnt just about installing software. Its a holistic process that requires significant organizational change management, employee training, and new workflows. -> Customization Takes Time: Tailoring SAP to your business needs isnt instantaneous. Customization requires thorough planning, testing, and ongoing adjustments to align with specific requirements. -> Data Migration is Critical: The data migration phase is one of the most complex and crucial steps. Ensuring data integrity, consistency, and accuracy often takes longer than expected. -> Continuous Support is Key: SAP isnt a "set it and forget it" solution. Post implementation support and regular updates are vital to maintaining optimal performance and adapting to changing business needs. -> Cultural Transformation: Adopting SAP can sometimes be a cultural shift, requiring teams to rethink old practices, embrace new processes, and foster collaboration across departments. Every SAP implementation is unique, but understanding these hidden facts can set you up for a smoother and more successful project. #SAP #ERP #DigitalTransformation #BusinessSuccess #ProjectManagement #SAPCareers

“We budgeted for an ERP at $500K. We’re at $850K now, and it’s still not live.” A CFO told me this recently. And unfortunately, it’s not the first time I’ve heard this story. ERP projects rarely fail because of technology. They fail because of decisions made (or not made) before the system even goes live. 💸 Where does the budget spiral out of control? 🔴 Scope Creep: "Can we also add this?" "What if the system could do that?" A few ‘small’ changes here and there, and suddenly, you're paying for customizations you never planned for. 🔴 Poor Planning: The team underestimated how much time and effort ERP implementation takes. Now, they’re hiring extra resources, delaying timelines, and paying for extended vendor hours. 🔴 Vendor Misalignment: The ERP provider is focused on selling licenses. The implementation partner is focused on going live. But who’s making sure the system actually works for your business? By the time businesses realize this, they’re too deep into the project to turn back. The best way to avoid budget overruns? 💡 Have someone who keeps the project in check from Day 1. Someone who: ✅ Locks the project scope before it gets out of hand. ✅ Ensures planning is realistic, not just optimistic. ✅ Aligns vendors with your business goals—not theirs. 📌 Most ERP projects don’t fail in implementation. They fail in decision-making. ♻️ We, at Affility Consulting, are a team of independent ERP advisors with the expertise and experience to support you through digital and business transformation. 💬 Have you seen ERP budgets spiral out of control? What went wrong? Let’s talk.

ERP implementation is 10% technology, 40% process alignment, and 50% navigating human nature. Most ERP failures aren’t about the software—they’re about adoption. You can have the best system in the world, but if processes are unclear and the transition feels overwhelming, resistance is inevitable. Technology sets the foundation. Process alignment ensures efficiency. Navigating human nature determines success. The problem? Traditional change management focuses on training, communication, and leadership buy-in. But people don’t resist change—they resist uncertainty and disruption. If you want real adoption, don’t just manage change. 𝗠𝗶𝗻𝗶𝗺𝗶𝘇𝗲 𝗳𝗿𝗶𝗰𝘁𝗶𝗼𝗻, 𝗿𝗲𝗱𝘂𝗰𝗲 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗳𝗮𝘁𝗶𝗴𝘂𝗲, 𝗮𝗻𝗱 𝗺𝗮𝗸𝗲 𝘁𝗵𝗲 𝗻𝗲𝘄 𝘀𝘆𝘀𝘁𝗲𝗺 𝗳𝗲𝗲𝗹 𝗹𝗶𝗸𝗲 𝘁𝗵𝗲 𝗽𝗮𝘁𝗵 𝗼𝗳 𝗹𝗲𝗮𝘀𝘁 𝗿𝗲𝘀𝗶𝘀𝘁𝗮𝗻𝗰𝗲. What’s your take? Have you seen ERP projects fail not because of resistance, but because the transition felt too complex to adopt?