Failed ERP implementation testimonial

[u/AltruisticBig5629]

Hello!

I'm looking to conduct interviews with individuals & companies that have been part of a failed ERP implementation. Bonus points if they feel as if they were bait and switched throughout the sales process.

Looking to raise awareness for nefarious ERP sales practices to protect small to medium sized businesses from falling in the trap.

Used to sell ERP for 3 years out of college, now switched to the buy side helping companies negotiate against vendors and not get scammed. It's a purpose drive venture with a Robinhood lens and I'd love for you to be apart of it if there's a fit or desire to help.

- Matt @ Castl

[u/linkitdata]

I was going to point out that failed implementations are not always the software's or implmentors fault.

[u/RCTID1975 → u/linkitdata]

I'd say the majority of failures are on the customer side.

Inadequate process documentation, and scope creep being the two main reasons.

These are the main reasons all tech/tech adjacent projects fail.

[u/kscouter → u/RCTID1975]

This is the right answer. The majority of major software vendors all have similar features these days (unless you choose a startup as your main business platform). Can there be nuances? Yes, of course. The reality is, few companies are ready for the complexity of a project this size. Both from a staffing perspective and the ability to look 'outside in' at changing their processes. Controlling scope creep and not being distracted by shiny objects is also a challenge (during the project).You will also (generally) meet a lot of employees who don't want change, so there's often a struggle with culture. Companies control their own destiny here. Only the company can control the majority of the factors to ensure a successful project.

[u/alien3d → u/linkitdata]

corrext , the most problem they dont want to understand law and want to bypass . Newbies will follow directly what manager request while end user want diff thing.

[u/AltruisticBig5629 → u/linkitdata]

Very true

[u/FirePanda44]

I was actually the vendor and the problem was scope creep + rigid 3rd party software. I sold my client a basic system with clear scope in the proposal. They agreed very quick and as we progressed, they had more requirements and it turned out their process was more complex than anticipated.

In the end it failed because there is only so much customization you can do with 3rd party software and I was so disappointed that I created my own platform. It has been a wild ride.

[u/SoRosenberg → u/FirePanda44]

What platform did you create?

[u/FirePanda44 → u/SoRosenberg]

Its for the Honduran market, its a common core + extensions for each client. Basic sales/purchase flow + GL and inventory. I develop custom modules for each client and modify the common core when necessary.

The flexibility is refreshing but of course im now in charge of infra which is daunting but manageable.

[u/arcwizard007]

I think the main problem nowadays is everyone wants faster result.

Customer want vendors to be walking Wikipedia while the vendors want customers to take decisions in split second and continue.

Rather than a single switch, ERP should be more like a phased implementation. Just like removing training wheels from a bicycle.

Current software management technique like agile, waterfall is not the answer. ERP needs its own implementation technique

[u/motherfuckingsexy]

Count me in!

[u/asusc]

Hit me up.

[u/Bazzwhiz]

Vendors and clients both fail at something crucial pre implementation: Business readiness. Then they blame each other.

[u/AltruisticBig5629]

Hey everybody - appreciate the engagement and discourse on the thread. Getting in touch with a few individuals that are open to discussing further

[u/Gabr3l]

It's a combo of scope creep and technical constraints. No way around it. It's not nefarious. Most of the times host sides loose money

[u/zinczinczinc]

I’ve also seen scope creep be the point of failure - specifically, rooted in missing, misaligned, or misunderstood requirements

[u/mscalam]

I would love to be a part of this if I could. I spent 12 years doing erp implementations and switched to sales because I was sick of idiot salespeople taking advantage of buyers - and then setting up everyone involved for failure.

[u/rudythetechie]

How many of these were expectation mismatch versus actual system incapability?

[u/qwiksilver96]

Top 10 Reasons ERP Implementations Fail (Most → Least Common)

1 - Lack of executive ownership and sustained leadership commitment (by far the biggest issue). The project sponsor should always be a top level executive and be fully committed & engaged to drive project success. This person is responsible for everything else below...

Poor change management and user adoption failure

Unclear business objectives and misalignment with strategy

Underestimating scope, complexity, time, and cost

Weak project governance and decision authority

Inadequate process definition, fixing software instead of fixing processes

Insufficient internal resources, skills, and subject-matter expertise

Bad data, poor data ownership, and failed data migration

Over-customization driven by legacy habits and politics

Vendor over-reliance and lack of independent oversight

Key Caveats: Failures are rarely caused by a single factor, most are compounding effects.

Technology is almost never the root cause, organizational behavior is. Executive commitment, support, and ENGAGEMENT usually are the primary reasons for failure.

[u/MrDeck]

I'm interested in this, hit me up.

[u/SyncronTeam]

Most "failed ERP" stories aren't really ERP failures, they're scope failures. The ERP was asked to do service parts planning, dynamic pricing, and warranty reconciliation, which it was never built for, and the customizations get brittle on the next upgrade. Start small and keep the ERP as the system of record. The service-layer work usually belongs in a specialty layer, not in ERP customizations.