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7 Key factors for better ERP solution implementation

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The implementation of an ERP system is crucially important given its impact on the strategic aspects of organizations and their day-to-day operations. The success of an ideal implementation depends on several factors. In this article, I will discuss seven of these factors, which are part of best practices in project management.   


A poorly planned or poorly managed implementation can have serious consequences: a gap between expectations and results, a lack of added value, cost and deadline overruns, or even worse... a never-ending project. These problems are not inevitable: they often result from a lack of clarity in objectives, poor communication, or an underestimation of the human dimension.  


To successfully implement an ERP system, here are seven key factors you need to consider in order to maximize operational gains and optimize the different phases of your project. 


#1.  Define the project to better control risks 

Even if you have found the best technologies and solutions available on the market, your ERP project can still cause several issues: 


  • The project can drag on for several years, jeopardizing the company's strategic objectives, competitive advantage, or even its structural functioning.  

  • The project may not deliver the expected results.  

  • The project may cost you more, directly or indirectly, than you had anticipated.  


The failure of Nike's ERP system implementation project is one of the most striking examples of poor technology project management. A case study conducted by the MBA Knowledge Base explains the facts. In 2000, Nike deployed supply chain planning software developed by i2 Technologies with the aim of optimizing its production forecasts and logistics flows. However, the system quickly generated major errors: highly sought-after models were out of stock, while others that were less popular were produced in excess [1]. These malfunctions resulted in an estimated loss of more than $100 million in sales, a drop of approximately 20% in the share price, and legal reprisals from shareholders. [2] 


To rectify the situation, Nike had to reinvest heavily and devote several years of effort to overhaul its system and stabilize its supply chain. This experience served as a lesson for the company: it subsequently conducted a thorough review of its project governance, internal communication, and pre-deployment testing processes. [1,2] 


Thus, proactive and rigorous project management, detailed feasibility studies, and demanding planning with dynamic risk management are the keys to successful implementation. 

 

#2. Clearly defined objectives and processes  

Before considering implementing a solution, every organization must know what economic and structural goals the new system is intended to achieve. To do this, the organization must understand its internal processes, their specific characteristics, and how they interact in order to identify the improvements to be made and thus facilitate the decision-making process relating to the solution.  


A report published by Panorama Consulting Group [3] shows that Woolworths (often referred to as Woolies) experienced significant difficulties when implementing its new ERP system in 2009. This transition disrupted the production and distribution of financial statements, depriving store managers of their usual weekly reports for an extended period.   


This malfunction was not only the result of technical problems, but above all of an insufficient understanding and inadequate documentation of internal processes. Without a clear map of its operational practices, the company found itself unable to effectively leverage its new management tool, revealing the strategic importance of knowledge and formalization of processes prior to any digital transformation. 

 

#3.  A rigorous definition of requirements 

To successfully integrate a new system, each organization must first understand its own reality and clearly define its requirements. This exercise makes it possible to establish a precise inventory of the needs that the new solution must meet. It strengthens negotiating power when searching for a solution and makes it possible to identify any incompatibilities or limitations of a system during its preliminary evaluation at the earliest stages.  


The case of Waste Management perfectly illustrates this type of situation. The company estimated that it could achieve annual savings of between $106 million and $220 million by implementing SAP's ERP system [4]. However, the project turned into a resounding failure, resulting in considerable delays and the need to find a solution better suited to its business processes. According to analyses by Third Stage Consulting and Panorama Consulting, Waste Management's main mistake was choosing a standardized solution with features that were too generic to meet the complexity of its organizational needs. [4,5] 

 

#4. Capitalize on an expert and motivated team 

Implementing an ERP system is a complex process that requires rigorous methodology and sustained team effort. It is therefore essential to pay particular attention to the composition and expertise of the project team. Best practices recommend that this team include profiles covering all key areas of the company, while also having a thorough understanding of the value chain of its industry.   


The case of MillerCoors illustrates this need. In March 2017, the company filed a $100 million lawsuit against HCL Technologies, accusing the latter of mismanagement of the ERP project, marked by a lack of qualified personnel, significant delays, and faulty deliverables. According to a report published by InformationWeek, this case highlighted the major impact that inadequate planning and a poorly structured project team can have on the success of an ERP deployment. [6] 

 

#5. Active stakeholder involvement  

ERP implementation projects require significant organizational commitment and often expand the scope of responsibility for many employees. However, when stakeholders—particularly managers and key users—are not sufficiently involved, the risk of deviation increases considerably and often manifests itself in a misunderstanding of needs, resistance to change, or technical decisions that are disconnected from operational realities.   


According to a 2001 case study conducted by the University of Texas on the FoxMeyer Drugs ERP project, the lack of active user participation and poor communication between different teams led to a series of major malfunctions, ultimately precipitating the failure of the project and the bankruptcy of the company. [7] This example highlights the need for continuous, transparent, and two-way communication in order to maintain a collaborative dynamic, foster a positive climate, and facilitate the efficient allocation of resources throughout the deployment. 

 

#6. End-user testing and training 

Adopting an ERP system requires users to develop new skills. Without structured training, data entry errors, misunderstanding of processes, and resistance to change can quickly disrupt operations.   


According to Panorama Consulting and Blue Link ERP, Target Canada's failure in 2013 illustrates these risks: poorly trained teams exacerbated data problems, and without sufficient testing and integration prior to go-live, the organization ended up with mislabeled inventory, store shortages, and major losses [8,9]. As a result, end-to-end testing (functionality, integration, performance, and user acceptance testing, or UAT) and training users upstream are not optional: these practices secure deployment, reduce “unpleasant surprises,” and guarantee the daily reliability of flows. 

 

#7. Proactive change management  

Announcing a beneficial change to employees is usually well received. However, changing habits and ways of working is another matter entirely. Introducing a new solution, new terminology, or new instructions to employees who have been using the same system for years poses considerable operational, cultural, and economic risks.

  

According to the Royal Academy of Engineering, the failure of the LASCAD computer system rollout at the London Ambulance Service in 1992 perfectly illustrates these risks. The project, which was poorly prepared and inadequately supported, caused major disruption: ambulance delays, excessive workloads for teams, and a loss of confidence among staff. The investigation conducted after the incident revealed that the lack of a change management plan, insufficient user involvement, and an overly ambitious schedule were among the main causes of the failure. [10] 


It is therefore essential to develop a structured change management plan to avoid such bottlenecks during deployment. This plan will help engage stakeholders, encourage their ownership of the project, and ensure a smooth transition to the new system. 

 

In conclusion 

We hope this blog has given you an idea of the key factors for successfully implementing an ERP system. Of course, there are other factors to consider when implementing an ERP solution, but we believe that taking the seven factors presented above into account will be a very important step toward success.  


If you have any questions, please don't hesitate to contact us! We would be happy to receive your ideas and comments. 



References

[1] Abey Francis. (n.d.). Case Study of Nike: The Cost of a Failed ERP Implementation. MBA Knowledge Base. https://www.mbaknol.com/management-case-studies/case-study-of-nike-the-cost-of-a-failed-erp-implementation/  

[2] Koch, C. (2004, June 15). Nike rebounds: How Nike recovered from its supply chain disaster. CIO. https://www.cio.com/article/264637/enterprise-resource-planning-nike-rebounds-how-nike-recovered-from-its-supply-chain-disaster.html 

[3] Baumann, B. (2021, March 17). Lessons learned from the Woolworths Australia ERP failure. Panorama Consulting. https://www.panorama-consulting.com/woolworths-australia-erp-failure/ 

[4] Kimberling, E. (2019, October 8). The biggest ERP failures of all time. Third Stage Consulting. https://www.thirdstage-consulting.com/the-biggest-erp-failures-of-all-time/ 

[5] Baumann, B. (2021, April 14). Lessons learned from the Waste Management ERP failure. Panorama Consulting. https://www.panorama-consulting.com/waste-management-erp-failure/ 

[6] Thibodeau, P. (2017, July 27). MillerCoors’ $100-Million IT Lawsuit Warning. InformationWeek. https://www.informationweek.com/it-leadership/millercoors-100-million-it-lawsuit-warning 

[8] Panorama Consulting. (n.d.). Lessons learned from the Target Canada supply chain failure. Retrieved November 27, 2025, from https://www.panorama-consulting.com/target-canada-supply-chain-failure 

[9] Target Canada: Mistakes made from a software perspective. (n.d.). BlueLinkERP. https://www.bluelinkerp.com/blog/target-canada-mistakes-made-from-a-software-perspective/ 

[10] Royal Academy of Engineering. (2017). Case study 5 – London Ambulance Service. In Engineering Better Care: A systems approach to health and care design and continuous improvement. https://reports.raeng.org.uk/engineering-better-care/case-study-5-london-ambulance-service.html 

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