Rubenstein Justman Management Consultants

WSJ: Where ERP Goes Wrong

by Jeff Dix

The Wall Street Journal on August 23rd published an article and regarding some of the common pitfalls of Enterprise Resource Planning (ERP) implementations.  The article and report were written by two professors, one a strategy professor and one who focuses on Information Systems.   You can read the article, called “Diets That Don’t Work: Where Enterprise Planning Goes Wrong,” here.

The article agrees significantly with RJMC’s take on ERP – that the software can provide tremendous value as long as the buyer exercises a proper degree of care in the selection and implementation of the system.  RJMC has preached consistently that change management and management of expectations are critical keys to success and the authors of this study concur, writing:

Some companies stumble with ERP at this [process change] stage because they are afraid to abandon old ways of working that have served them in the past. Others stumble later on by embracing technology that simply mirrors older systems already in use. Still others are reluctant to let go of either their old software or old ways of working.

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RJMC agrees that identifying and addressing the processes that are critical to a company’s success and protecting only these processes from significant change is a good prescription for a successful implementation.  Allowing for change to all non-critical processes in order to take advantage of the efficiencies that a new ERP system offers help our clients stay on time and on budget during their projects.  If you have chosen your ERP software properly, you can trust that the best practices built into the software will work for most of the “everyday” tasks that your team needs to accomplish.

A link to the full “WSJ Executive Advisor Report” is available on the WSJ article page.

Rubenstein / Justman Management Consultants (RJMC) is a management consulting firm that prides it on the strong relationships it has established with its many clients over the past 24 years.  RJMC is vendor and solution independent and does not sell hardware or software or perform system implementations.  Visit www.RJMC.net to better understand the scope of RJMC services.