ERP Market Challenges

The biggest businesses can get major programmes horribly wrong. Here are 4 famous examples, the fundamental reasons for failure and how that might have been avoided. Hershey: Sought to replace its legacy IT systems with a more powerful ERP system. However, due to a rushed timeline and inadequate testing, the implementation encountered severe issues. Orders worth over $100 million were not fulfilled. Quarterly revenues fell by 19% and the share price by 8% Key Failures: ❌ Rushed implementation without sufficient testing ❌ Lack of clear goals for the transition ❌ Inadequate attention and resource allocation Hewlett Packard: Wanted to consolidate its IT systems into one ERP. They planned to migrate to SAP, expecting any issues to be resolved within 3 weeks. However, due to the lack of configuration between the new ERP and the old systems, 20% of customer orders were not fulfilled. Insufficient investment in change management and the absence of manual workarounds added to the problems. This entire project cost HP an estimated $160 million in lost revenue and delayed orders. Key Failures: ❌ Failure to address potential migration complications. ❌ Lack of interim solutions and supply chain management strategies. ❌ Inadequate change management planning. Miller Coors: Spent almost $100 million on an ERP implementation to streamline procurement, accounting, and supply chain operations. There were significant delays, leading to the termination of the implementation partner and subsequent legal action. Mistakes included insufficient research on ERP options, choosing an inexperienced implementation partner, and the absence of capable in-house advisers overseeing the project. Key Failures: ❌ Inadequate research and evaluation of ERP options. ❌ Selection of an inexperienced implementation partner. ❌ Lack of in-house expertise and oversight. Revlon: Another ERP implementation disaster. Inadequate planning and testing disrupted production and caused delays in fulfilling customer orders across 22 countries. The consequences included a loss of over $64 million in unshipped orders, a 6.9% drop in share price, and investor lawsuits for financial damages. Key Failures: ❌ Insufficient planning and testing of the ERP system. ❌ Lack of robust backup solutions. ❌ Absence of a comprehensive change management strategy. Lessons to be learned: ✅ Thoroughly test and evaluate new software before deployment. ✅ Establish robust backup solutions to address unforeseen challenges. ✅ Design and implement a comprehensive change management strategy during the transition to new tools and solutions. ✅ Ensure sufficient in-house expertise is available; consider capacity of those people as well as their expertise ✅ Plan as much as is practical and sensible ✅ Don’t try to do too much too quickly with too few people ✅ Don’t expect ERP implementation to be straightforward; it rarely is

I can tell within 10 minutes if an ERP project will succeed. I look at who's NOT in the room. If IT sent a project manager instead of the CIO showing up themselves, that's a problem.  You're about to build something that needs to integrate with your entire tech stack, and the person who owns that stack isn't involved enough to be there. If your biggest revenue generator "can't step away from customers," that tells me something too.  You're building a system for people who are already signaling they won't prioritize learning it.  They'll be too busy to train, too busy to adopt it, and too valuable to push back on. If the person who actually does the work sent their manager to represent them, you're going to get a secondhand version of how the work happens.  The system will get designed around how leadership thinks things work, not how they actually work on the ground. I've seen this pattern enough times to know: 𝘁𝗵𝗲 𝗽𝗲𝗼𝗽𝗹𝗲 𝘄𝗵𝗼 𝗮𝗿𝗲 𝘁𝗼𝗼 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗼𝗿 𝘁𝗼𝗼 𝗯𝘂𝘀𝘆 𝘁𝗼 𝗯𝗲 𝗶𝗻𝘃𝗼𝗹𝘃𝗲𝗱 𝗲𝗮𝗿𝗹𝘆 𝗮𝗿𝗲 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝗽𝗲𝗼𝗽𝗹𝗲 𝘄𝗵𝗼 𝗱𝗲𝗿𝗮𝗶𝗹 𝘁𝗵𝗶𝗻𝗴𝘀 𝗹𝗮𝘁𝗲𝗿. Not on purpose. But when the integrations aren't working during testing, IT points out they were never really consulted.  When your top performers won't use the system, they'll mention that nobody actually asked them what they needed.  When the workflows are off, frontline personnel say "yeah, we knew that wouldn't work." The projects that do work have the hard-to-schedule people in the room from the start. The CIO shows up.  Your best operators make the meetings a priority.  The people doing the actual work get to speak, not just their managers. Attendance signals commitment.  And you can't go back and add that commitment six months in when problems show up. Next time you're in a project kickoff, look around. Who's missing? That tells you a lot about what's coming. #ERPImplementation #ProjectManagement #Leadership

Most ERP projects don’t fail because of the software. They fail because of avoidable implementation mistakes. After looking at multiple ERP implementations, the same patterns show up again and again: ❌ No clear requirements ❌ Treating ERP as only an IT project ❌ Ignoring data quality ❌ Over-customisation ❌ Weak testing ❌ Poor user training ❌ No ownership ❌ Rushed go-live ❌ No post-go-live plan A successful ERP implementation is not just about configuration and go-live. It depends on business involvement, clean data, strong testing, process ownership, user readiness, and post-launch support. 𝗪𝗵𝗶𝗰𝗵 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲 𝗺𝗶𝘀𝘁𝗮𝗸𝗲𝘀 𝗱𝗼 𝘆𝗼𝘂 𝘀𝗲𝗲 𝗺𝗼𝘀𝘁 𝗼𝗳𝘁𝗲𝗻 𝗶𝗻 𝗘𝗥𝗣 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀? #ERP #ERPImplementation #DigitalTransformation #BusinessTransformation #ChangeManagement #ProjectManagement #EnterpriseSystems #UAT #DataMigration #TechConsulting

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

What Nobody Tells You About ERP Implementations After 50+ enterprise system implementations, I know exactly where they go wrong. It’s never where the project plan says it will. The project plan accounts for configuration, testing, training, and cutover. The risk register flags vendor delays and resource availability. It doesn’t have a line item for organizational politics. But that’s what kills implementations. The VP of Sales who won’t sign off on the revenue recognition rules because it changes how his team’s commissions calculate. The Controller who built 15 years of Excel workarounds that the new system won’t replicate. The CEO who approved the project but never actually told the organization it was mandatory. These aren’t edge cases. They’re the rule. Technology is the easy part. Change management is the hard part. And the CFO who owns the implementation — not just the budget, but the change authority — is the one who gets it across the line. Here’s the test I use before any implementation kicks off: Can the CEO name the three biggest organizational resistance points and commit to resolving them personally? If the answer is no, the implementation isn’t ready to start. Not because the technology isn’t ready. Because the organization isn’t. The CFOs who treat ERP implementations as IT projects with finance oversight get the graveyard. The ones who treat them as organizational transformations with financial accountability get a system that actually works. I’ve been in both rooms. The difference isn’t the software. It’s who owns the authority to make the hard calls when the organization pushes back. That’s always the CFO.

52% of digital transformation projects fail. If you think the problem is your software vendor, you are likely looking in the wrong place. The real budget-killer is rarely the code; it is the expensive silence between your Finance and Operations departments. I have seen this pattern repeat for 30 years. A CFO demands to "reduce working capital," but the COO interprets that mandate as a direct threat to inventory levels and production stability. It is the same directive, yet it triggers two opposing reactions because these leaders are operating in isolated worlds. The sketch below illustrates exactly where the money gets lost. That gap in the middle is where the project dies. Most organizations try to bridge this cultural divide with better code, but that is a fatal mistake. Tools like Smart Contracts or AI cannot fix misalignment. In fact, if Finance and Operations aren't speaking the same language before implementation, technology just helps you automate your mistakes faster. Over three decades, I have realized my role isn't just about supply chain consulting; it is about translation. The companies that actually survive market crises aren't the ones with the most expensive ERPs - they are the ones with the translators capable of connecting these two worlds. Be honest about your current roadblocks: is it really technical complexity, or is it the lack of a common language?

ERP Implementation Insights from a CFO As I explore my next CFO opportunity, I’ve found that there are frequent discussions about ERP implementation experience. Having led large-scale system rollouts, I often refer to guidance like that in Panorama Consulting Group's 2025 ERP Report (pages 16–20). Here are some key pitfalls (modified slightly based on my experience) I actively work to avoid — and advise others to consider: ✅  Lack of Executive Sponsorship The CFO must do more than approve the budget. Championing the project, aligning goals, and keeping stakeholders engaged is critical. Appointing a strong project sponsor and an active steering committee is a must. This includes the team having ownership of the RFP process and scoring. ✅  Unclear Objectives ERP systems do not fix misalignment — they expose it. Defining success metrics (pre- and post-go-live), particularly around operational efficiency and ROI, is vital. In the past, I have had all stakeholders provide functionality requirements and weighting. This does two things. First, it helps with team buy-in after the final selection. Second, it drives a process flow discussion (for example, why is it so important that the platform accepts six payment processing feeds, from four vendors?) ✅  Cutting Corners on Implementation and Training Training is often the first thing slashed. Big mistake. I push for tailored, ongoing training to ensure adoption and real performance gains. One of the largest risks I know of is at smaller companies where there are only one or two team members tasked with ongoing platform reviews. We had implemented SageIntacct at Hart (120 days from contract signature to go live), and they were always sending out system updates, new functionality, and informative how-to memos. Not having ongoing team recurring training is a leadership fail; not having the time for it is something that had to be culturally challenged. ✅  Poor Data Cleansing & Governance Migrating messy or duplicative data creates operational risk. I insist on strong internal ownership of data preparation, data flow and governance before implementation starts. ✅  Integration Blind Spots Many failures trace back to overlooked data compatibility issues. Integration planning — early and often — prevents surprises later. On the tech front, I’m tracking trends like: - Generative AI use cases embedded in ERP - Cybersecurity is becoming a core ERP feature - Cloud + Edge Computing for real-time insights ERP transformation is about business enablement, not just technology. As a CFO, I lead with that mindset.  I’m currently exploring CFO roles — especially where ERP is a value lever. Let’s connect if that’s a focus at your organization or portfolio company #CFO #ERP #DigitalTransformation #FinanceLeadership #JobSearch #ExecutiveSearch #AI #CloudComputing #PrivateEquity #StrategyExecution

You don’t lose money in ERP during go-live. You lose it months earlier — when everyone pretends everything is fine. The data? “We’ll clean it later.” The processes? “We’ll map them during design.” The requirements? “The partner will help.” The project resources? “We’ll backfill eventually.” The timeline? “We’ll make it work.” No, you won’t. And you know you won’t. But corporate culture rewards the person who says “Yes” — not the one who says “This will fail.” So truth gets buried. Red flags get softened. Risks get reframed. And suddenly you’re six months in, fighting fires you could have prevented with a four-week readiness review. That’s why my ERP Readiness offering exists. Not to slow you down. But to stop the runaway train before it hits the cliff. Because the cost of readiness is tiny. The cost of rework is brutal. Process issues. Bad master data. Broken governance. Unclear ownership. Competing agendas. Missing requirements. Undefined cutover. No change management plan. Leadership expecting a miracle. You don’t fix these DURING implementation. You fix them BEFORE — or you pay for them AFTER. Your choice. Get it right the first time and avoid the rework project!

We spend so much time focused on systems—PLM, ERP, IoT, MDM. And yes, they’re critical. But if we’re being honest, the biggest barriers to success aren’t the tools. They’re the people, processes, and communication gaps that get in the way. You can have the cleanest data, the smartest digital thread, and the most powerful platform in the world—but if the culture isn’t ready, if people don’t understand the “why,” and if change is seen as a threat instead of an opportunity—it won’t stick. 🧠 Cultural change is not a side effect of digital transformation—it’s a core requirement. You need champions. You need clear communication. You need alignment on purpose. Because transformation isn’t just technical—it’s emotional, behavioral, and human. So before you roll out that new system or master data initiative, ask yourself: 🔹 Have we brought our people along? 🔹 Do they feel heard? 🔹 Are we ready to lead through change—not just implement it? Tech moves fast. People move with trust. 🙏🏽 #DigitalTransformation #CulturalChange #MasterData #PLM #Leadership #ChangeManagement #PeopleFirst #TransformationStrategy

ERP transformations rarely fail because of the technology. They fail because the architecture didn’t match the business—and the warning signs usually show up long before go-live, hidden in decisions most teams assume are harmless. After more than 40 NetSuite transformations across high-growth, multi-entity environments, I’ve seen one pattern repeat over and over: companies underestimate the complexity of connecting finance, operations, data, and technology into a single scalable system. Here’s what typically causes trouble: 1️⃣ No true business architecture Teams jump into configuration without mapping future-state process flows, data models, or integration points. NetSuite becomes a patchwork of quick wins instead of a unified engine. 2️⃣ Finance and operations aren’t aligned This is the most common failure point. If R2R, O2C, P2P, and manufacturing flows aren’t designed together, the system becomes filled with workarounds, manual tasks, and conflicting rules. 3️⃣ Over-customization replaces good design SuiteScript is powerful… but it shouldn’t be used to fix gaps that architecture should have solved. Custom code should be strategic, not a crutch. 4️⃣ Integrations aren’t treated as part of the ERP Your WMS, CPQ, eCommerce platform, and billing systems are your ERP. If integrations aren’t stable, the business isn’t stable. 5️⃣ Lack of governance and data discipline No ERP can compensate for inconsistent processes, naming conventions, or data rules. But the companies that get it right follow a clear pattern: ✅ Start with a real blueprint Process maps, decision matrices, BRDs, future-state flows. ✅ Design with scale in mind Not what the business looks like today — but 2–3 acquisitions from now. ✅ Architect the ecosystem, not just Oracle NetSuite WMS, CPQ, CRM, eCommerce, tax engines, AI, data warehouse. ✅ Build using a hybrid skillset CFO logic + developer precision + operations understanding. (When those three perspectives aren’t in the same room, things break.) ✅ Hold a high bar for data quality Data is the real ERP. ERP success is never an accident. It’s the result of disciplined architecture, cross-functional clarity, and a mindset of “build it right the first time.” If you’re planning a NetSuite transformation in 2026, we are always happy to share lessons learned from the front lines. Unlock IQ (UIQ) | Trusted Oracle NetSuite Advisors #ERPTransformation #NetSuite #ERPImplementation #FinanceOps #BusinessTransformation #DigitalTransformation #Oracle #NetSuiteJobs #UnlockIQ #ProcessOptimization