ABSTRACT
Implementation of Enterprise Resource Planning (ERP) has received a great deal of attention in the press. The Wall Street Journal named ERP implementation “the corporate equivalent of a root canal.” The New York Times called ERP “software that can make a grown company cry.” Many ERP software suppliers make promises of huge savings and increased efficiencies, but the business press continues to report millions of dollars invested with little or no return on investment. Quoted failure rates are in the range of 60 to 90%. Failure is defined as an implementation that does not achieve the return on investment identified in the project approval phase. It is no wonder that companies of any size approach ERP implementation with hesitation and apprehension. Even with all the negative hype about ERP implementation, the “rules of the road” required for a successful implementation are well understood. Violate a number of these rules and failure is sure to follow. This is no different than running red lights or driving the wrong direction on a highway. You may be able to get away with it for a short period of time, but soon your luck will run out. ERP implementation can be straightforward if the following template is followed. This is not proposing to fit the business to some arbitrary software model, but rather to take advantage of proven, effective business practices.
