Q-2) CRLF ( a motor bike manufacturing organization) invested heavily in ERP implementation.

After implementation, the management realized implementing ERP is utter failure.

Consider yourself the part of management. Identify the reasons of possible cause of ERP
failure? Discuss reasons with example. (04)

1. Lack of Top Management Support:

Top management support play a very important role in the implementation of ERP. The approval of
project can be given by the top management and it can be align with strategic business goal. Lack of top
management support results in undefined business goals, lack of resources available and erp remain
unable to implement within time and within budget.

2.Lack of selection of right softwares, right modules and end goals:

The first step of successful erp implementation is the selection of right software along with right
modules to achieve end goals, failure in any of these results in failure of erp implementation e.g
company don’t need erp in first place, the modules are not integrated and not reflect actual
organizational dynamics.

3.Lack of erp team work & composition:-

The organization should opt for the best team including both the mix of consultants and internal staff so
that an internal staff could get the technical skills required for ERP implementation and design. The
team should be provided with necessary incentives and compensation within the recorded budget thus
poor selection of erp team that are not expert can turn all efforts into utter failure.

4. Lack of Appropriate Business & Legacy System:

During initial phase of the project appropriate business and legacy system is important .Old system
should be removed and new and advanced system should be adopted, the mistake or lacking in data
migration results in serious erp failure e.g legacy system data is not save and results in poor migration or
during migration some of the data is been lost.

5.Lack of personnel training and awareness:

The lack of personnel training and awareness regarding effective use of erp results in erp failure and
without training the fruits of erp implementation can not be achieved.