ERP projects are often undertaken by project managers in an effort to solve a problem,
increase efficiency, and/or provide a higher level of customer service. Although ERP
systems can provide all of these benefits and more, they can also cause havoc in an
organization if not managed correctly. There are far too many horror stories about
organizations failed ERP initiatives. In fact, the success rate of ERP implementations is
only around 33% and approximately 90% of ERP implementations are late or over
budget (Martin 1998).
How can a wonderful thing such as ERP cause such heartache? Often the issue has
nothing to do with technology and everything to do with the individuals involved with the
project. ERP problems arise from unrealistic expectations regarding resources and
cooperation required to implement an ERP system successfully.
ERP implementation articles consistently report that implementation failure or success is
people-related (Tapp 2003 & Peterson 2003). It’s often easier to blame the technology
then to explore these deeper issues but in the end they are the controlling factors. It is
important for managers to understand the complexities of the people-related issues,
relationships and office politics before embarking on a new ERP project. This research is
intended to provide insight regarding ERP implementation dynamics through modeling;
to build and explore theories regarding what causes ERP success/failure and ultimately
aid project managers in avoiding common pitfalls.