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Success and failure in the implementation of technological systems like erp or crm

Anonim

Nowadays, being competitive companies is a requirement to survive. Many companies have taken as a survival factor to have some type of software system that helps them to be better and, consequently, to be more competitive. Some of these systems are ERP, CRM, SAP, FS, etc.

But for several companies the implementation of this type of systems has not been successful, since the success or failure of the implementation of an ERP depends on having the adequate technical and human resources, in addition to considering an effective administration of the project, since it is not enough to acquire the system and now.

Having the right team of people will be definitive. From this point and until completing the implementation of some type of software, the company must form a highly qualified work team that allows it to carry out the critical definitions of the project, such as which modules are to be implemented, the adjustments or modifications that require and the order in which they should be implanted. This working group, generally made up of managers from different departments, should fully engage with the system until they get to know the details of its operation.

Below are some of the reasons why a company succeeds in implementing any of these types of software or why a company fails despite having one of these.

  • The benefits that any business receives in relation to its development are unlimited. According to companies like NIKE, DHL, Tektronix, Fujitsu, Millipore, Sun Microsystems, some of the reasons why they were successful in implementing a software type (ERP, CRM, SAP, FS, etc.) are: They had more control for staff who handled accounts payable, billing, thereby increasing their productivity and eliminating the need for staff to operate the computers. Faster access to the system and retrieve information instead of looking for that documentation in paper files. Time reduction. New information that occurs every day is captured at the time of the operation and you do not have to wait every two weeks or every month to capture it. The information is more precise with which the auditors are satisfied.The systems have helped to control costs. It has a fast response and follow-up of customers. It is monitored in a more effective way to consult any type of information. They improve supply and demand links with remote sites and branches thanks to Leagues with different countries. It has a unified database of clients that can be used for all applications. It improves the international operation by supporting a variety of tax structures, billing schemes, multiple currencies, multiple accounting periods and languages. Provides solutions to problems such as Y2K and SMU (Single Monitory Unit) or currency in Euros.It is monitored in a more effective way to consult any type of information. They improve supply and demand links with remote sites and branches thanks to links with different countries. It has a unified database of customers that they can use to All applications. Improves international operation by supporting a variety of tax structures, billing schemes, multiple currencies, multiple accounting periods and languages. Provides solutions to problems like Y2K and SMU (Single Monitory Unit) or currency in Euros.It is monitored in a more effective way to consult any type of information. They improve supply and demand links with remote sites and branches thanks to links with different countries. It has a unified database of customers that they can use to All applications. Improves international operation by supporting a variety of tax structures, billing schemes, multiple currencies, multiple accounting periods and languages. Provides solutions to problems like Y2K and SMU (Single Monitory Unit) or currency in Euros.Improves international operation by supporting a variety of tax structures, billing schemes, multiple currencies, multiple accounting periods, and languages. Provides solutions to problems such as Y2K and SMU (Single Monitory Unit) or Euro currency.Improves international operation by supporting a variety of tax structures, billing schemes, multiple currencies, multiple accounting periods, and languages. Provides solutions to problems such as Y2K and SMU (Single Monitory Unit) or Euro currency.

In some of the successful cases, results are found in the operational area such as sales increases of up to 43% per salesperson, increases in customer satisfaction of 22%, reductions in the sales cycle of 24%, etc. But not everything is rosy, some data on this type of systems does not motivate us to implement any of them. According to Meta Group, between 55 and 75% of CRM projects do not reach their objectives. Gartner Group states that currently 65% ​​of CRM projects fail, and that percentage will grow to 80% in 2003. These failures are mainly caused by not meeting expectations, as well as a significant increase in initial budgets..

Some of the reasons why companies fail to implement this type of software are the following:

  • They think that by implementing this type of technology, it will solve all the aspects of the company on its own and it is not so because many times this type of software is not the solution for what the company requires, that is, it does not have well defined business objectives. There is no passion in the organization for learning new ways of operating. There is no defined strategy and there is no correct allocation of resources and there is no correct methodology for project development. Business processes are not redefined to achieve the desired results. There is no quality data or information, since in many cases customer data and information is basic because conclusions can be drawn from it. Change is not properly managed.There is no analytical part and without it many of the advantages that these systems offer are lost.

Other reasons for failure could also be causes related to the immaturity of the market: little evolved and validated solutions, lack of "vertical" solutions, lack of specialized consultants, etc. But in itself, the reasons why these types of projects fail are due to organizational change, practices in the company, lack of understanding of the system, poor planning, management failures, budget problems, among others, etc..

In conclusion, the success or failure of a company when implementing some type of software, be it ERP, SAP, CRM, etc., depends on the objectives and the way of implementing it, since the company must be open to the changes that will be created. with the new system and must have defined what are the expectations with which it is intended to count.

Bibliography

ERP's how to avoid horror stories. October 20, 2002. Available at:

No ERP is 100% tailored to the needs of organizations, even if providers say otherwise. The Economist. Monday, April 10, 2000 By: Francisco Javier Sinta Moreno. October 20, 2002. Available at:

Why does a CRM project fail? Find out, current-informatics. Advantages and Disadvantages of ERP Systems by Eduardo Navarro - Partner Dtor Improven Consultores. 05/06/2002, 00:00 GMT + 1. Baquia.com. October 20, 2002. Available at:

Success and failure in the implementation of technological systems like erp or crm