Managing ERP Implementation Failure: A Project Management Perspective

Abstract

Information technology (IT) projects are susceptible to changes in the business environment, and the increasing velocity of change in global business is challenging the management of enterprise systems such as enterprise resource planning (ERP). At the same time, system success depends on the rigor of the project management processes. Scope creep, poor risk management, inadequate allocation of human resources over time, and vendor management are some common problems associated with the implementation of an enterprise system. These issues pose threats to the success of a large-scale software project such as ERP. This research adopts a case study approach to examine how poor project management can imperil the implementation of an ERP system. Having learned the lessons from the failure of its first ERP implementation, the company in this case reengineered its project management practices to successfully carry out its second ERP implementation. Many critical project management factors contributed to the failure and success of this company's ERP system. This study explores and identifies critical elements of project management that contributed to the success of the second ERP implementation. For those organizations adopting ERP, the findings provide a roadmap to follow in order to avoid making critical, but often underestimated, project management mistakes.