Digital transformation and ERP failures are caused by a number of things. Poor project management, lack of internal alignment, and poor organizational change management are just a handful of reasons by transformations so commonly fail.
Behind these and other common symptoms lurks a deeper root cause: lack of independence and objectivity. Simply put, ERP vendors and systems integrators to commonly focus on selling as much software as quickly as possible rather than focusing on the things that will lead to success.
ERP vendor and systems integrator biases
For example, while organizational change management is the #1 cause of success and failure, most ERP vendors don’t focus on this because it’s not in their wheelhouse. Instead, they focus on the features and functions of technology. This bias commonly leads their clients down a path headed toward disaster.
We also see countless situations where software vendors and systems integrators let their biases get in the way of their clients’ success. For example:
- Force-fitting technology in places that it’s not a good fit for
- Taking on too much of the implementation work rather than allowing the client to take a more active role
- Neglecting ERP data management, change management, and other critical activities
- Staffing more people on the project than is required
- Myopic focus on technology rather than the people and process dimensions of the project
Some of these biases are driven by economic incentives. Others are driven by lack of understanding. Whatever the cause of the bias, it is important to recognize that these biases lead to a number of other symptoms – often snowballing out of control throughout the implementation.
Client and project team biases
It’s not just the vendors and systems integrators that let their biases get in the way. Clients themselves have their own biases, such as:
- Difficulty or unwillingness to change
- Wanting to build the software the same as their legacy systems
- Not recognizing the value of organizational change management
- Not providing adequate resources and ERP project team members
The answer to lack of independence and objectivity
There are a number of ways you can address these biases. This video explains in more detail:
Please feel free to contact me if you would like to brainstorm ideas regarding your digital transformation, ERP, HCM, or CRM initiative. My team and I are happy to be an informal sounding board as you continue your journey.
Eric is recognized globally as a leading voice in digital transformation and ERP strategy. Over the past two decades, he has helped hundreds of organizations – including Nucor Steel, Fisher & Paykel Healthcare, Kodak, Coors, Boeing, and Duke Energy – define their technology roadmaps, modernize complex operations, and deliver real business value from large-scale transformation initiatives.
As Founder and CEO of Third Stage Consulting, Eric leads an independent, technology-agnostic advisory firm focused on helping clients navigate the shift from traditional ERP to more flexible, AI-enabled Digital Enterprise Operations (DEO) models. His work spans ERP selection, implementation quality assurance, organizational change, and operating model design across a wide range of industries and geographies.
Eric is also a prolific thought leader, known for his pragmatic takes on AI, cloud, and enterprise software trends, as well as his firm’s benchmark research and frameworks for de-risking transformation. He is dedicated to helping executive teams cut through vendor hype, make confident investment decisions, and successfully reach the “third stage” of their digital evolution.
