Black Holes And Lost Data: ERP Doesn’t Have To Be Chaos
According to Gartner research, over 70 percent of ERP (Enterprise Resource Planning) initiatives are unlikely to achieve their business objectives. An article from CIO Africa highlights the high failure rate and risks associated with ERP projects, emphasizing that many fail not because of technology but due to poor governance, lack of internal ownership, and insufficient visibility into business goals. The notable example of SPAR’s $88.7 million SAP write-off underscores the potential for significant disruption and financial loss when implementations go wrong. Gartner research indicates over 70% of ERP initiatives do not meet their objectives, often due to issues like scope creep, misaligned vendors, and unclear success definitions. The article stresses that effective governance is critical for success and should be viewed as an executive responsibility, not just administrative tasks. Building a strong governance framework involves establishing clear accountability, surfacing risks early, and ensuring vendors are contractually aligned with business outcomes. The CIO’s role is pivotal but challenging, often caught between managing ongoing operations and leading transformation efforts without enough support. Recent failures, such as Birmingham City Council’s £100 million Oracle project, exemplify systemic governance and vendor management flaws. The key to turning around ERP projects lies in restoring visibility, accountability, and control through structured governance, enabling faster decision-making and early problem detection. Ultimately, the article advocates for proactive governance as a foundation for operational resilience and project success, emphasizing that while success cannot be outsourced, it can be achieved through proper structures and leadership.
