09 - Managing Implementation (UK 2018).pdf - Managing Implementation 1 ERP Success and Failure 2 Success is not guaranteed Many surveys of ERP failure

09 - Managing Implementation (UK 2018).pdf - Managing...

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Managing Implementation 1
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ERP Success and Failure 2
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Success is not guaranteed ! Many surveys of ERP failure, e.g.: Trunick: 20% total failure, 40% only achieve limited functionality Escalle et al: failure rate > 50% Ptak & Schragenheim: 60-90% less effective than initial expectations Standish Group: 90% of projects are late or over budget Extreme example: FoxMeyer Drug went bankrupt due to failed ERP implementation 3
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What do we mean by ‘success’ ? Project on-time and within budget ? System working smoothly ? Measurable business benefits ? These aspects do not always go together 4
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How can we measure ‘success’ ? Referring to categories on previous slide: Project management parameters ? Customer (user/manager) satisfaction ? Business performance metrics ? 5
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Reasons behind extended durations 6
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Benefits realised vs. expectations 7
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