How to Avoid ERP Failures: Key Considerations, Real Causes & Best Practices

Implementing an ERP system is a critical step for any organization aiming to streamline operations, increase productivity, and enhance decision-making. However, despite the benefits, ERP failures remain a common and costly challenge across industries.

Previously, we covered the topic “Enterprise Resource Planning Software BuyerView 2015”, discussing the key considerations before choosing an ERP solution. In this article, we revisit the crucial topic of ERP failures based on insights from SoftwareAdvice’s comprehensive study, which analyzed 22 failed ERP implementations. At Globalteckz, a leading Odoo ERP partner, we’re sharing our experience and commentary to help businesses avoid these common pitfalls.

Why Do ERP Implementations Fail?

ERP implementation rarely fails due to the software itself. Instead, it fails because of factors like poor planning, lack of user involvement, insufficient change management, and vendor misalignment. According to SoftwareAdvice’s findings, the most common causes of ERP failures include:

• Poor change management

• Inefficient implementation planning

• Inexperienced consultants

• Lack of governance

• Vendor-related issues

• Project delays

• Budget overruns

• Incomplete or buggy software

• Internal resistance or shareholder disputes

• Economic constraints

At Globalteckz, we strongly believe and communicate to our clients:

“ERP implementation is not successful when the vendor finishes development. It’s successful when the organization adopts and uses the system effectively.”

Key Goals for Successful ERP Implementation

According to SoftwareAdvice, a successful ERP project achieves these six outcomes:

• On-time implementation

• On-budget or under-budget delivery

• Minimal disruption to operations

• Improved organizational efficiency

• Reduced operating costs

• Increased revenue

While all six are important, we’d like to emphasize on-time delivery. In our experience, delays often occur when clients frequently change requirements mid-development or fail to finalize scope during the initial planning phase. For smooth and cost-effective implementation, it’s critical to freeze requirements early and collaborate actively with the ERP vendor.

Best Practices to Avoid ERP Failures

To help businesses mitigate the risks of ERP failures, here are key best practices drawn from industry experience and research:

• Train employees at all levels, not just top management. End-users are the real drivers of ERP success.

• Create realistic timelines. ERP implementation isn’t a one-month job. Depending on your scope, it may take several months to a year.

• Involve your IT team. Internal collaboration helps accelerate issue resolution and ensures smooth adoption.

• Set clear goals before choosing an ERP. Avoid unnecessary feature requests early on—they increase costs and delay go-live timelines.

• Choose the right ERP partner. Experience, methodology, and post-implementation support play a huge role in long-term success.

Globalteckz’s Approach to Preventing ERP Failures

At Globalteckz, we pride ourselves on delivering quality ERP implementations across various industries including manufacturing, trading, and services. As an official Odoo Silver Partner, our team of experienced ERP developers, functional consultants, and project managers ensure timely delivery, clear documentation, and client involvement at every stage.

We understand the complexities of ERP projects and guide small and mid-sized businesses in implementing cost-effective, scalable solutions. One such tool is Odoo ERP—an open-source, web-based system ideal for sales, CRM, warehouse, inventory, and accounting operations. With industry-specific modules and quick implementation timelines, Odoo is a powerful fit for growing businesses.

Final Thoughts

ERP failures can be avoided with the right strategy, team, and ERP partner. Proper planning, active user involvement, structured training, and realistic expectations form the foundation of a successful ERP rollout.

If you’re planning to implement ERP software or struggling with a failed deployment, contact Globalteckz for a personalized consultation and expert support. sales@globalteckz.com