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ERP Failures: Failure is Inevitable When Businesses Attempt to Cobble ERP Systems From Components
25 years after the introduction of ERP, ERP systems remain a center of contention and a sinkhole for money. Gartner describes it saying that “The traditional ERP world no longer exists, it has been replaced by postmodern ERP. ”
What is postmodern ERP? They’re federated and loosely coupled components that aren’t provided by a single vendor like traditional ERP systems were from SAP and Oracle. But Gartner predicts that a loose coupling of components will ultimately create systems that become too unwieldy. In fact, they think that more than 80 percent of attempts to glue together ERP functionality in this way will fail.
Carol Hardcastle, Gartner research vice president, said that “this new environment promises more business agility, but only if the increased complexity is recognised and addressed. Twenty five or more years after ERP solutions entered the applications market, many ERP projects are still compromised in time, cost and more insidiously in business outcomes… Organizations need to resist the temptation to succumb to pressure from business leaders to get started before the organisation is really ready – and without a business-agreed ERP strategy. Business leaders must understand what it will take to ensure success… The blame for this, however, does not lie solely with end-user organizations that lack the experience and expertise to avoid many of the pitfalls. System integrators and ERP vendors have to be accountable to their customers in this respect.”
