Christopher Salis Explains the Top Reasons for SAP Implementation Failure

1
Christopher Salis Explains the Top Reasons for
SAP Implementation Failure
2
02
03
04
Implementing an ERP system such as SAP S/4HANA
can be considered new territory for most
businesses, even those with prior experience with
large and complex IT projects. The reality is
that most SAP projects do not fail due to a
flawed selection process or ERP system
functionality. ERP implementations fail because
they are not viewed as a people-centric system
rather than a large IT project. So, let's
explore the most common reasons for failure
explained by Christopher Salis.
3
Being Product-LedThe foundation is the first
step in any construction project, and it is
prudent to ensure that the foundations are sound.
The tendency with SAP S/4HANA is to approach this
from the ground up as well ensure that the IT
infrastructure is sound and fit for purpose, that
data can be migrated, and that new systems work
within given performance parameters.
4

• As a result, the implementation is viewed as an
  "SAP S/4HANA migration project" rather than a
  business transformation project. "Migration"
  implies a technical approach, whereas business
  transformation necessitates early input from all
  departments.
• Unfortunately, end users are unlikely to be
  involved in the early stages of a business
  transformation program. As a result, specific
  critical strategic steps may be defined at this
  early stage - before the company has wholly
  defined what the program is for.

5
Features Over FunctionWhile it is healthy to
think of your SAP S/4HANA project as one that
will transform your business, don't expect
systems to solve all your problems and elevate
you to the position of digital leader. Setting
unrealistic and overly optimistic expectations is
another path to failure.
6

• The failure at Lidl is an example of having
  unrealistic expectations. Any project must have a
  reasonable time frame and align its working
  methods with system capabilities. After seven
  years and 500 million, it became clear that
  bridging the gap between how Lidl wanted to
  operate and how the SAP systems have been
  designed to work would not be possible.

7

• Lacking Experience and Expertise
• Your internal resources and vendor systems
  integrator may be capable of handling your entire
  project, but how do you know?
• Your systems integrator and your ERP
  project/program manager should have prior ERP
  experience in your industry. They may be capable
  of designing and managing the system development
  process, but can they handle the additional
  people and process the required transformational
  elements?

8

• Change management, risk assessment, and user
  adoption are all critical to success. Have you
  accumulated enough experience and expertise to
  deal with them? Without these capabilities, the
  project will fail once more.

9
Although ERP systems are frequently regarded as a
necessary evil, they are here to stay,
particularly as businesses strive to go digital.
You can avoid the major pitfalls of the
conventional, often complicated, implementation
approach. So, plan ahead of time, gather
requirements, form strong teams, and strengthen
expertise in process and people-centric issues.