Paul M. Diffenderfer
Why do 50% of ERP Implementations fail to deliver their expected benefits? Why has this percentage not decreased despite the myriad of experts, expert books and close experi-ence of managers? The usual answer is complexity; but this answer is too simple. We would not except 50% functionality from an automobile and yet is its complexity so much less than a typical ERP system? So what is the explanation for the failure? This book will attempt to show why ERP failure is so high and what one can do to foresee and forestall failure.
The basic thesis this book offers is that ERP Systems have certain organisational and firm-culture requirements. These requirements can not be met by simply purchasing even the best ERP system, and these requirements are difficult to impossible for external expertise to impact. Truth be told; even with the best ERP system and best ERP consultants in the world some companies are just not a good fit for ERP, and until this fitness is internal to the company an ERP implementation will not achieve expected RIO and operational targets.
In this book we will begin by considering the optimising of organisational structure and then slowly but surely move toward the task of creating a self-organising firm founded on an optimised and tailor-fit ERP system.