Question 1

What is the most common reason ERP projects fail?

Accepted Answer

Adoption and change management, not technology. Roughly thirty percent of ERP projects with sound software still fail because the people side was underestimated. Forgotten integrations are a close second cause of budget overruns.

Question 2

Why include exit terms in an ERP RFP?

Accepted Answer

An ERP vendor a client cannot leave has all pricing power for the next decade. The RFP is the only phase in which the client still has leverage to negotiate dataportability, knowledge transfer and exit procedures.

Question 3

What is total cost of ownership for an ERP?

Accepted Answer

Over five years, an ERP typically costs two to five times the initial quote when upgrades, customizations, support and change management are budgeted. The license is rarely the largest cost; lost productivity from a wrong fit is.

Question 4

Why should processes be documented before vendor demos?

Accepted Answer

ERP projects most often derail on undocumented exceptions. If the buyer does not know them before selection, the vendor decides how they are solved, which is rarely in the buyer's favor.

Question 5

Who should own the ERP project internally?

Accepted Answer

One person at executive level with explicit ownership. ERP projects without clear executive sponsorship lose priority after six months when other fires emerge.

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