Identifying ERP Challenges for Executives

One CEO told me directly: “Klaus, you’re spending too much money.” The result: Another year of legacy, highly customized and disjointed ERP systems. Every executive decision carries invisible weight. The trade-offs are rarely discussed in the boardroom presentation. Here’s one that still keeps me up: You’re leading IT for a growing MedTech company. Years of acquisitions have left you with multiple ERP systems that don’t talk to each other. Manual workarounds everywhere. Excel spreadsheets bridging the gaps. Your teams are burning out maintaining systems that should have been retired five years ago. You build the business case. You show the operational cost, the untapped efficiency opportunities, the quality risk, the competitive disadvantage. You present the path forward. The CFO looks at the budget. The CEO looks at the timeline. “We can’t afford the disruption right now. The complexity is too high. You’re spending too much money.” So you manage the legacy systems for another year. And another. You watch competitors move faster because their technology actually works. You see talented people leave because they’re tired of 12-14 hour workdays and fighting broken tools. I’ve been in this position multiple times. Here’s what 15 years in executive IT positions has taught me: The cost of doing nothing always exceeds the cost of doing something. You just pay for it differently. Instead of a planned investment with a timeline and an ROI, you pay in operational inefficiency, quality incidents, lost talent, and missed market opportunities. My recommendation after doing this across the US, Europe, APAC, and Latin America: Treat ERP strategy like you treat capital equipment decisions. You wouldn’t run manufacturing on machines from three different acquisitions that can’t communicate. You wouldn’t tell your operations or quality teams to make do with duct tape and spreadsheets. Yet we do exactly that with enterprise systems and wonder why digital transformation fails. Stop asking “Can we afford this?” Start asking “Can we afford to keep operating like we are currently?” and "Which decisions do we need to make to support the commercial growth plans that we have?" Because the gap between what your systems can do and what your business needs to do is growing every quarter. Your competitors are closing that gap. Your best people are leaving to join companies that have. In regulated industries like MedTech, your ERP system is more than just software. It’s your quality system, your compliance framework, your operational backbone. When it breaks, everything breaks. Have you been there? How do you make the case for necessary technology investment when the C-suite sees complexity and cost instead of capability and competitive advantage? #GlobalLeadership #ExecutiveDecisions #ERPStrategy #DigitalTransformation #MedTech #ITLeadership #FractionalCIO

Why Do 70-75% of ERP Implementations Fail? The "Three C's" That Organizations Must Manage Enterprise Resource Planning (ERP) systems are essential for improving efficiency, yet 70-75% of implementations fail. Common reasons include immature data, poor requirements, complex legacy systems, and over-customization. Suppliers often oversell benefits and underestimate the effort required. However, technical challenges can usually be resolved with time and expertise. The real issues lie in what I call the "Three C's" of ERP implementations, which organizations must manage internally. The Three C's of ERP Implementations: 1.    Capacity Organizations often struggle to balance ERP implementation with regular operations. Underestimating the workload leads to resource strain, missed deadlines, and project failure. It's vital to assess and allocate resources effectively to handle both ERP tasks and daily operations. 2.    Capability Success requires the right people making informed decisions. Beyond project managers, organizations need experienced functional and process owners. Poor decision-making due to lack of expertise often derails projects, so placing the right talent in key roles is essential. 3.    Change Management Many ERP systems fail due to poor change management. Employees often resist new processes, especially if they’ve used legacy systems for years. Without proper training and support, staff may revert to inefficient methods. Strong change management ensures smooth transitions and user adoption. Overcoming the Three C’s with an Organizational Readiness Assessment To successfully manage the "Three C's," organizations should conduct an "Organizational Readiness Assessment" before even the implementation even starts - at the time of strategy planning. This process evaluates resource capacity, decision-making capabilities, and change management plans. Identifying and addressing gaps helps ensure the organization is ready for ERP implementation. Conclusion ERP failures often stem from internal challenges rather than technical ones. The "Three C's"—Capacity, Capability, and Change Management—are critical factors that organizations must manage to ensure success. By conducting an Organizational Readiness Assessment and addressing gaps, companies improve their chances of successful ERP adoption. Ultimately, ERP success depends, amongst other things, on whether the organization is prepared for the change.

𝗘𝗥𝗣 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗱𝗼𝗻'𝘁 𝗳𝗮𝗶𝗹 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝗼𝗳 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆. They fail because of people. After 25+ years helping organizations navigate digital transformations and serving as an expert witness in some of the largest ERP lawsuits in the world, I can tell you the pattern is always the same. It's not the software that breaks. It's the system around it: → 𝗕𝗶𝗮𝘀 in vendor selection — where decisions are driven by relationships and sales influence rather than business fit → 𝗖𝗼𝗻𝗳𝗹𝗶𝗰𝘁𝘀 𝗼𝗳 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 — where the people advising you also profit from the outcome → 𝗖𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗿𝗲𝘀𝗶𝘀𝘁𝗮𝗻𝗰𝗲 — where organizations believe they're "too big to change" → 𝗪𝗲𝗮𝗸 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 — where no one owns the outcome and risks go unmanaged → 𝗣𝗼𝗼𝗿 𝗰𝗵𝗮𝗻𝗴𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 — where leadership delegates instead of leads The US Air Force spent $5 BILLION on an Oracle ERP implementation before canceling it. A Senate investigation called it an "organizational disaster." The technology wasn't the problem. Haribo nearly killed the gummy bear market when their SAP go-live — timed at peak Christmas season — caused supply chain chaos and millions in losses. These aren't just cautionary tales. They're proof that your transformation strategy matters more than your software choice. If you're about to embark on an ERP journey, ask yourself: Are the people advising you truly independent? Is your organization ready to change? Do you have governance strong enough to catch problems before they become disasters? The answers to those questions will determine your success — not the logo on your software. ♻️ Repost if you agree. Follow me for more transformation insights. #ERP #DigitalTransformation #ERPFailure #ChangeManagement #EnterpriseStrategy #SAPFailure #OracleERP #TransformationStrategy #Leadership #ThirdStageConsulting #CIO #CFO #BusinessTransformation

ERP projects keep failing. But not for the reasons you think. In my 25 years of ERP implementations, I’ve seen 50+ projects fail miserably. Here are 8 challenges no one warns you about (and how to overcome them): 1. 𝐀𝐫𝐭𝐢𝐜𝐮𝐥𝐚𝐭𝐢𝐧𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐌𝐨𝐝𝐞𝐥𝐬 𝐭𝐨 𝐒𝐈𝐬 Most manufacturers assume their SI “gets it.” They don’t. Translating your ops into tech isn’t their job. It’s yours! → Create a “business blueprint” document that outlines critical processes, KPIs, and unique workflows before the SI even starts. 2. 𝐓𝐡𝐞 𝐓𝐞𝐚𝐦 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐯𝐬. 𝐐𝐮𝐚𝐧𝐭𝐢𝐭𝐲 𝐃𝐢𝐥𝐞𝐦𝐦𝐚 Big budgets don’t mean big results. → Instead of bloating your team, invest in a few A+ players who know your systems inside out. → A lean, sharp team will outpace a large, disconnected one every time. 3. 𝐅𝐮𝐭𝐮𝐫𝐞-𝐏𝐫𝐨𝐨𝐟𝐢𝐧𝐠 𝐟𝐨𝐫 𝐂𝐥𝐨𝐮𝐝 The ERP landscape is moving to the cloud, and ignoring this shift is risky. → During vendor selection, evaluate the scalability and adaptability of their cloud solutions. → Focus on modular architectures that can evolve with your business rather than locking into rigid legacy systems. 4. 𝐂𝐡𝐚𝐧𝐠𝐞 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐁𝐥𝐢𝐧𝐝 𝐒𝐩𝐨𝐭𝐬 Resistance to change isn’t just inevitable—it’s predictable. → Don’t rely on generic training sessions. Tailor change management initiatives by team and role. → Invest in “process champions” from each department to act as internal advocates and troubleshooters. 5. 𝐃𝐚𝐭𝐚 𝐌𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 Dirty data leads to bad decisions. → Start cleansing and validating your data before the project officially kicks off. → Run pilot tests on smaller datasets to identify issues early. → Make data governance an ongoing effort, not a one-time task. 6. 𝐔𝐀𝐓 (𝐔𝐬𝐞𝐫 𝐀𝐜𝐜𝐞𝐩𝐭𝐚𝐧𝐜𝐞 𝐓𝐞𝐬𝐭𝐢𝐧𝐠) 𝐌𝐢𝐬𝐬𝐭𝐞𝐩𝐬 Most teams treat UAT as a box-checking exercise. It’s not. → Design UAT with two phases: (1) functional testing to validate individual workflows, and (2) end-to-end testing to uncover interdepartmental gaps. → Simulate edge cases to prepare for real-world scenarios. 7. 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐓𝐞𝐬𝐭𝐢𝐧𝐠 𝐔𝐧𝐝𝐞𝐫 𝐏𝐫𝐞𝐬𝐬𝐮𝐫𝐞 ERP systems can buckle under real-world transaction volumes. → Include stress tests in your performance testing phase to simulate peak loads. → Ensure you test in a near-production environment, not an idealized sandbox. 8. 𝐏𝐨𝐬𝐭-𝐆𝐨-𝐋𝐢𝐯𝐞 𝐂𝐡𝐚𝐨𝐬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 Most companies think the job ends at go-live. It doesn’t. → Implement a stabilization phase, typically 3-6 months, where a dedicated team handles issues, monitors performance, and fine-tunes processes. → Pre-define escalation paths for quick resolution of critical problems. ERP implementation isn’t just a tech project; it’s an organizational transformation. What’s been your toughest ERP challenge? Let’s discuss below. Follow Shobha Moni to get the best out of your favourite ERP systems.

Last year I spoke to a CFO, and he asked me what red flags he needs to watch for on an ERP implementation. These are my top 5 for him: 1. No measurable acceptance criteria How do you know that the right scope of work delivered? One of my clients did not run the workshops and did not have a list of requirements, fits, and gaps. This did not go well. Vendor was fired. Project delayed for 6 months. 2. Milestones priced by time, not outcomes If payments are tied to dates or “phases” instead of concrete, testable outcomes, you’ll pay to discover work you didn’t want. Vendors love that model. You should hate it. Unfortunately, I made that mistake on my very first ERP implementation in 2005. This caused 1 year delay on a project and 100% overbudget. 3. Too few business SMEs involved If your best finance people are missing from design and testing because “they’re busy,” that’s not busy - that’s negligence. One of my clients allocated the core project team part time on top of their full-time job. They struggled to deliver. After 8 months of delay and 2 postponed go lives the client eventually cancelled the whole project. 4. Change control issue If anyone can add “just one small change” without governance, scope creep will eat your budget and timeline. One project I worked on did not have a change control in place. This resulted in bloated scope, delay and budget overrun for 30%. 5. No clear cutover or rollback plan Unfortunately, that was me again in 2007. On my first ERP project. No structured cutover plan. Painful failed go live. Rollback on the fly. Firefighting. To sum up. If you see one of these red flags (or several), act as soon as possible. You are likely to face a risk of delay and overbudget.

𝗧𝗵𝗲 𝗿𝗲𝗮𝗹 𝗖𝗘𝗢 𝗱𝗶𝗹𝗲𝗺𝗺𝗮 The dilemma is simple:
You inherit an ERP with a long history but no one hands you a clear picture of what it can actually do. Yet you’re still expected to lead with confidence, speed, and accuracy. 𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝗺𝗮𝘁𝘁𝗲𝗿𝘀:
When you don’t know what the system is capable of, you can’t fully trust the numbers, the processes, or the reports that shape your decisions. That uncertainty slows everything down, from monthly reviews to board updates to day-to-day leadership. 𝗪𝗵𝗮𝘁 𝗰𝗿𝗲𝗮𝘁𝗲𝘀 𝘁𝗵𝗲 𝗱𝗶𝗹𝗲𝗺𝗺𝗮:
Across companies, the pattern repeats: • Implementations that were never completed • Features paid for but never activated • Automation available but never used • Manual consolidation kept alive long after better tools existed • Vendor relationships that stalled years before you arrived. 𝗛𝗼𝘄 𝘁𝗼 𝗴𝗲𝘁 𝗼𝘂𝘁 𝗼𝗳 𝗶𝘁:
The first step isn’t to replace the system or launch another project.
It’s to get an honest assessment of what you already have: what’s working, what’s missing, and what was never turned on in the first place. Only then can you decide what to fix, what to activate, and what to stop doing manually. Because in the end, you don’t know what you don’t know. #First90Days #ERPStrategy 

Your ERP project has a 75% chance of failing. Are you ready to beat the odds? Those numbers sound high—because they are. We see it every day: → Delayed projects → Budget overruns → Teams back in Excel after go-live The result? Lost sales, wasted investment, and frustrated teams. Hershey’s, Waste Management, Publicis Groupe—these are not small companies. Each lost millions because their ERP projects missed the mark. Why does this keep happening? From my experience, the root causes are clear: 1. Poor Software Fit → Companies choose systems that don’t match the way they work → No clear business requirements up front → The wrong tool for the job 2. Bad Vendor Selection → Vendors promise everything, deliver little → No industry expertise → Weak support after launch 3. Lack of Strong Leadership → ERP is not just an IT project—it changes how people work → No clear vision from the top → Change management is an afterthought 4. Employee Pushback → Not enough training or communication → Users don’t see the value → Old habits resurface fast 5. Rushed Testing and Data Migration → Skipping steps to “save” time → Issues only show up after go-live → Fixing errors is expensive The good news? These risks are preventable. What works: → Define your business needs first (not the software) → Pick a vendor with proven experience → Invest in leadership and change management → Train your people early and often → Test everything before launch ERP projects fail for predictable reasons. That means you can avoid them. Want a checklist to help you start right? Check out our free ERP Selection Guide: https://lnkd.in/dUysFn5u How does your team prepare for ERP projects? Lessons learned welcome.

Most ERP rollouts fail—not because of tech, but hidden roadblocks nobody talks about. Our blueprint for breaking through them ↓ 1. Change Resistance: People fear the unknown. Address concerns early. Involve key stakeholders from day one. Communicate benefits clearly and consistently. 2. Data Migration Nightmares: Clean your data before migration. Map fields meticulously. Test, test, and test again. 3. Customization Creep: Stick to out-of-the-box features when possible. Evaluate each customization request critically. Remember: More customization = More complexity. 4. Training Oversight: Invest heavily in user training. Create role-specific guides. Offer ongoing support post-launch. 5. Scope Expansion: Define clear project boundaries. Use a phased approach. Resist the temptation to add "just one more thing." 6. Leadership Misalignment: Secure executive buy-in early. Establish a clear project champion. Keep leadership engaged throughout the process. 7. Resource Underestimation: Plan for the long haul. Budget for unexpected costs. Don't skimp on expert consultants. Navigating these roadblocks requires experience. We've guided countless businesses through successful ERP implementations. Take the first step toward transforming your ERP rollout into a game-changing success. Let's talk.

𝗪𝗵𝘆 𝗱𝗼 𝘀𝗼 𝗺𝗮𝗻𝘆 𝗘𝗥𝗣 𝗺𝗶𝗴𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗮𝗶𝗹? 𝗕𝗲𝗰𝗮𝘂𝘀𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘁𝗿𝗲𝗮𝘁 𝗶𝘁 𝗹𝗶𝗸𝗲 𝗮 𝘀𝗶𝗺𝗽𝗹𝗲 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗽𝗮𝘁𝗰𝗵, not the business transformation it truly is. Listening to my network, there seems to be a rush to complete ERP migrations, as fast as possible, with SAP S/4HANA plans driving most of it. But an ERP system is more than just an IT upgrade. It’s a chance to redesign how your business operates and build a solution architecture that supports agility and innovation. While necessary, these migrations often become redundant without proper alignment to business goals. Something, I've seen happen! Here some get rights to consider: ◉ 𝗔𝗹𝗶𝗴𝗻 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗮𝗻𝗱 𝘁𝗲𝗰𝗵 𝗴𝗼𝗮𝗹𝘀 Ensure that IT and business leaders are on the same page. ERP systems serve broader business objectives, such as innovation, improving procurement strategies, and enhancing supplier relationships. ◉ 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝘁𝗼𝗼𝗹𝘀. Instead of getting caught up in the technology itself, be clear about the business benefits you'd like to achieve. New ERP functionality can be of support to achieve goals like efficiency, cost reduction, and agility. ◉ 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝘆 𝘄𝗼𝗿𝗸𝗳𝗹𝗼𝘄𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀 𝗲𝗻𝗱-𝘁𝗼-𝗲𝗻𝗱 Don't just migrate complex, outdated processes but streamline them end-to-end. Reevaluate processes for efficiency and desired outcomes. ◉ 𝗜𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝗰𝗵𝗮𝗻𝗴𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 - 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗶𝗻 𝘁𝗿𝗮𝗶𝗻𝗶𝗻𝗴 ERP migrations often fail due to poor user adoption. Beyond training, invest in communication & ongoing support showing the value and relevance of the system to users. ◉ 𝗜𝗻𝘃𝗼𝗹𝘃𝗲 𝗰𝗿𝗼𝘀𝘀-𝗳𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝘁𝗲𝗮𝗺𝘀 ERP impacts every area of the business, so cross-team collaboration is essential. Involve stakeholders from finance, procurement, IT, and operations ensures the system meets everyone’s needs. ◉ 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗱𝗮𝘁𝗮 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 - 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗰𝗼𝗺𝗽𝗿𝗼𝗺𝗶𝘀𝗲 An ERP system is only as good as the data it processes. Ensure that data is clean, consistent, and reliable before migration. Dirty or incomplete data is one of the biggest challenges post-go-live. ◉ 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘀𝗲 𝗦𝘆𝘀𝘁𝗲𝗺 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗖𝗼𝗺𝗽𝗼𝘀𝗮𝗯𝗶𝗹𝗶𝘁𝘆 Choose an architecture which allows for future-proofing and integration of new features, scalability and integration. Business models evolve, and your ERP must evolve with them." ◉ 𝗦𝗲𝘁 𝗿𝗲𝗮𝗹𝗶𝘀𝘁𝗶𝗰 𝘁𝗶𝗺𝗲𝗹𝗶𝗻𝗲𝘀 - 𝗶𝘁'𝘀 𝗻𝗼𝘁 𝗴𝗼𝗶𝗻𝗴 𝘁𝗼 𝗯𝗲 𝗾𝘂𝗶𝗰𝗸 𝗶𝗳 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝘃𝗲 Don’t rush an implementation. ERP migrations are complex and require time to integrate properly. A phased approach allows for troubleshooting and mitigates a risk for failure. ❓Any other "get rights" i missed and you would add from your experience. #erp #businesstransformation #migration #sap4hana

Everyone blames the ERP. The software. The vendor. The consultants. The implementation team. But almost never the real root cause. ERP systems don’t invent chaos. They reveal it. They amplify it. They operationalize it. Before ERP, dysfunction hides in spreadsheets. In tribal knowledge. In manual workarounds. In “that one person who knows everything.” It survives quietly. Invisible. Unmeasured. Then ERP arrives. Suddenly, every undefined process becomes a system error. Every ownership gap becomes a blocked transaction. Every data inconsistency becomes a financial reconciliation issue. ERP doesn’t break the organization. It removes the ability to hide organizational weaknesses. And that’s why ERP failures feel so violent. Not because the technology failed. Because the organization was never structurally ready for transparency at scale. ERP is not a technology transformation. It is an organizational discipline enforcement mechanism. If your processes are disciplined, ERP scales clarity. If your processes are broken, ERP scales chaos. Faster. Louder. And far more visibly. The uncomfortable truth most executives learn too late: ERP readiness—not ERP selection—determines ERP success. Technology is just the amplifier. Your operating model is the signal. #ERP #DigitalTransformation #CIO