About the reasons for unsuccessful ERP implementations
After this post about the implementation of ERP systems, I also decided to write about it. A person who personally led at least two or three projects will never write like that. This post I met once in LJ as a comment. But one thing is comment and quite another thing - post. All cases are dumped in one pile.
The approach described in the article can be applied anywhere. To the communications market, to the food market, to the advertising market, and to anything. According to this scheme, many implementations do pass, but this does not mean that the entire market works according to this scheme. Apparently it was written with the aim of "pure parzhe" ...
I will try to solve this problem more fully and accurately.
')
Yes, it is clear that in Russia with the successful implementation of ERP systems, things are not the same as in the West. Although, in the Danish Kingdom, I'm sure, all is not well.
Tell me, what is better in our country than with the implementation of ERP? Maybe with roads? Maybe with a connection? Or maybe with something else? Wherever we go, the main slogans everywhere are “ponty”, “budget”, “rollback”, “cut”. It is difficult to achieve a decent result when such things play a central role.
There are several fundamental reasons.
We divide all enterprises into several segments and consider each individually.
There is practically no chance to automate such an enterprise. Transparency in such companies is not needed by anyone and, first of all, it is not needed by the management of these companies. In turbid water, as is well known, it is much more convenient to “master” the budget. But the President said - modernization, innovation and nanotechnology, it means it is necessary to introduce. How does this happen? And I will tell you. A tender is being organized, which wins the “right” company, which of course has nothing to do with the management of the company and, of course, has not promised a rollback to anyone.
Then the implementation project begins. For most of the company's employees, this ERP system is like a fifth leg dog. As a fly bothersome, like a regular guide. The company is constantly reorganizing. As soon as one ends, another begins immediately. Apparently, in order to finally confuse everyone. Unhappy consultants do not have time for changes that occur in the company. People change, shuffle. Business processes in a company are not that incomprehensible, but they are not there at all. Just not all. And no one wants them to be. Etc. etc.
Manual ERP-system recalls only when someone higher asks about the modernization. Rollback received, but no one thought that everything is so difficult. What turns out to implement ERP, you need some discipline, some business processes and someone to follow them. Three years later, the project is slowly closing, after another rollback has been received for this.
Or a case, for example, can go to court. Because the rollback received one, and the second does not understand why there is no result. And the first has already quit.
Who then will understand the true causes? Write - this is another failure of the introduction.
Personally, I will never take up the automation of state enterprises.
The chances are also almost zero, and the chances are the lower the bigger the company. These companies already have certain spheres of influence. There are top managers, each of which has its own ambitions, its own people, its own views, etc. And, of course, each of them has its “right” consultants and its “right” ERP-system.
Top management, as a rule, does not go deep into such a project, doing things that are much more important. Well, I do not know, there, biting off a piece of the state budget, with the right tenders, soaring in the baths with the generals, etc. The management of the “bone marrow” simply does not feel the need for ERP, because there are no problems anyway, marginality is in order, we don’t have to fight for clients, because there are people in government agencies. Well, since there one of the tops asks, then, well, to hell with you, inject.
There are no kickbacks here, as a rule, but this is no easier. When the tender starts, each top "moves" its system. All systems can not win, but it means that some one wins. What is the reaction to it from other tops? Right! Just like that. What will happen next to tell? None of the top will not tolerate that he, however, turned out to be in the business. There conflict is inevitable, and, as a result - sabotage.
The leadership can not rein in saboteurs, because they are either close friends or distant relatives of the founder or other leadership.
The blanket will begin to drag, squabbles and the project will fail. Another reason to talk about the next failure of the project.
Once I was brought hard in a similar tender. This was the last time I was so mistaken. Thank God, the project did not have time to start.
As a rule, enterprises of this scale operate in a real market competition mode; they do not sit on state budgets. Although, of course, not without it. But the monopolism here, of course, is smaller. These companies are really interested in quality management, transparency, optimization, in increasing customer loyalty and productivity. So, they just need modern business management tools, customer services, chips, etc.
Here, as a rule, the head of the company knows almost every employee, and his authority really extends to the whole company. These companies are quite mobile, decisions are made more or less quickly. And, most importantly, the head of the company here is personally involved in the project for the implementation of the ERP system. And it is not just involved, but, often, personally guides the process.
This is the only business segment where the odds are quite good. True, subject to certain conditions, which are below.
Also a very sensitive issue. Many companies that prioritize not entirely honest principles use the naivety of customers and give them really non-performing products. And then the process goes the way it is written in the post mentioned at the very beginning. But this problem can be solved. I personally at one time attended to this problem and wrote a number of articles on this subject. On Habré here , here , here , and here on your site, for example.
Unfortunately, in the ERP market, the client must also be armed and theoretically prepared. Also, however, as in any other market. We have a country like this. I, for example, recently got on the mobile Internet. I saw enough of advertising on the box, where the speed of the mobile Internet in his ears whistles, even when the sound is turned off at the box, and here is the result.
Everything is about the same as with ERP-systems. Need to be alert. But there is a simple way. Here you are at the stage of choosing a solution and supplier. Meet with a consultant who will lead your project. Would you hire such a person? How many projects did he personally do? What are these companies?
A good consultant is the person you want to hire.
A common problem for all companies is the attitude to the project from the head of the company. Jye noted correctly in one of the comments that the company’s head personally supervises excavators, tractor drivers and landscapers when they need to improve the territory of their own office, but they prefer not to go into the ERP system. Very often accompanying it with the words "I do not understand anything in computers." Yes, and where are the computers? ERP-system is a reflection of business. Or the company decided to build a new office. Who will lead this process? That implementation of the ERP-system belongs to the same category of tasks.
Somehow like this.
The approach described in the article can be applied anywhere. To the communications market, to the food market, to the advertising market, and to anything. According to this scheme, many implementations do pass, but this does not mean that the entire market works according to this scheme. Apparently it was written with the aim of "pure parzhe" ...
I will try to solve this problem more fully and accurately.
')
Yes, it is clear that in Russia with the successful implementation of ERP systems, things are not the same as in the West. Although, in the Danish Kingdom, I'm sure, all is not well.
Tell me, what is better in our country than with the implementation of ERP? Maybe with roads? Maybe with a connection? Or maybe with something else? Wherever we go, the main slogans everywhere are “ponty”, “budget”, “rollback”, “cut”. It is difficult to achieve a decent result when such things play a central role.
There are several fundamental reasons.
- Customers themselves
- Bad ERP systems
- Stupid consultants, who themselves still need to advise.
Customers themselves
We divide all enterprises into several segments and consider each individually.
1. All state-owned enterprises. GUPy, MUPy, JSC (which were formerly state-owned enterprises, and simply changed the sign), etc.
There is practically no chance to automate such an enterprise. Transparency in such companies is not needed by anyone and, first of all, it is not needed by the management of these companies. In turbid water, as is well known, it is much more convenient to “master” the budget. But the President said - modernization, innovation and nanotechnology, it means it is necessary to introduce. How does this happen? And I will tell you. A tender is being organized, which wins the “right” company, which of course has nothing to do with the management of the company and, of course, has not promised a rollback to anyone.
Then the implementation project begins. For most of the company's employees, this ERP system is like a fifth leg dog. As a fly bothersome, like a regular guide. The company is constantly reorganizing. As soon as one ends, another begins immediately. Apparently, in order to finally confuse everyone. Unhappy consultants do not have time for changes that occur in the company. People change, shuffle. Business processes in a company are not that incomprehensible, but they are not there at all. Just not all. And no one wants them to be. Etc. etc.
Manual ERP-system recalls only when someone higher asks about the modernization. Rollback received, but no one thought that everything is so difficult. What turns out to implement ERP, you need some discipline, some business processes and someone to follow them. Three years later, the project is slowly closing, after another rollback has been received for this.
Or a case, for example, can go to court. Because the rollback received one, and the second does not understand why there is no result. And the first has already quit.
Who then will understand the true causes? Write - this is another failure of the introduction.
Personally, I will never take up the automation of state enterprises.
2. All private enterprises numbering over 300-500 people.
The chances are also almost zero, and the chances are the lower the bigger the company. These companies already have certain spheres of influence. There are top managers, each of which has its own ambitions, its own people, its own views, etc. And, of course, each of them has its “right” consultants and its “right” ERP-system.
Top management, as a rule, does not go deep into such a project, doing things that are much more important. Well, I do not know, there, biting off a piece of the state budget, with the right tenders, soaring in the baths with the generals, etc. The management of the “bone marrow” simply does not feel the need for ERP, because there are no problems anyway, marginality is in order, we don’t have to fight for clients, because there are people in government agencies. Well, since there one of the tops asks, then, well, to hell with you, inject.
There are no kickbacks here, as a rule, but this is no easier. When the tender starts, each top "moves" its system. All systems can not win, but it means that some one wins. What is the reaction to it from other tops? Right! Just like that. What will happen next to tell? None of the top will not tolerate that he, however, turned out to be in the business. There conflict is inevitable, and, as a result - sabotage.
The leadership can not rein in saboteurs, because they are either close friends or distant relatives of the founder or other leadership.
The blanket will begin to drag, squabbles and the project will fail. Another reason to talk about the next failure of the project.
Once I was brought hard in a similar tender. This was the last time I was so mistaken. Thank God, the project did not have time to start.
3. Private enterprises of less than 300 people.
As a rule, enterprises of this scale operate in a real market competition mode; they do not sit on state budgets. Although, of course, not without it. But the monopolism here, of course, is smaller. These companies are really interested in quality management, transparency, optimization, in increasing customer loyalty and productivity. So, they just need modern business management tools, customer services, chips, etc.
Here, as a rule, the head of the company knows almost every employee, and his authority really extends to the whole company. These companies are quite mobile, decisions are made more or less quickly. And, most importantly, the head of the company here is personally involved in the project for the implementation of the ERP system. And it is not just involved, but, often, personally guides the process.
This is the only business segment where the odds are quite good. True, subject to certain conditions, which are below.
Bad ERP systems
Also a very sensitive issue. Many companies that prioritize not entirely honest principles use the naivety of customers and give them really non-performing products. And then the process goes the way it is written in the post mentioned at the very beginning. But this problem can be solved. I personally at one time attended to this problem and wrote a number of articles on this subject. On Habré here , here , here , and here on your site, for example.
Unfortunately, in the ERP market, the client must also be armed and theoretically prepared. Also, however, as in any other market. We have a country like this. I, for example, recently got on the mobile Internet. I saw enough of advertising on the box, where the speed of the mobile Internet in his ears whistles, even when the sound is turned off at the box, and here is the result.
Stupid consultants
Everything is about the same as with ERP-systems. Need to be alert. But there is a simple way. Here you are at the stage of choosing a solution and supplier. Meet with a consultant who will lead your project. Would you hire such a person? How many projects did he personally do? What are these companies?
A good consultant is the person you want to hire.
PS
A common problem for all companies is the attitude to the project from the head of the company. Jye noted correctly in one of the comments that the company’s head personally supervises excavators, tractor drivers and landscapers when they need to improve the territory of their own office, but they prefer not to go into the ERP system. Very often accompanying it with the words "I do not understand anything in computers." Yes, and where are the computers? ERP-system is a reflection of business. Or the company decided to build a new office. Who will lead this process? That implementation of the ERP-system belongs to the same category of tasks.
Somehow like this.
Source: https://habr.com/ru/post/103367/
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