55 to 75% of ERP implementations in manufacturing fail to deliver - Here’s why
I have been through two ERP rollouts in manufacturing environments and both of them were painful in ways that felt completely avoidable in hindsight. I always assumed we just got unlucky with vendors or timing. Then I came across an article that broke down the actual reasons this keeps happening across the industry and it made a lot of things click.
The core problems it identifies:
- Everyone compares feature lists. Every vendor checks every box on every RFP. The spreadsheet tells you nothing because the answer is always yes. What actually eliminates vendors are the hard technical requirements a system simply cannot meet, and nobody leads with those.
- Most consultants running these evaluations are not independent. Referral arrangements between consultants and vendors are standard practice in this market. The recommendation follows the commission, not your requirements.
- The demo is not real. Sales teams show you a clean environment with practiced click paths and ideal data. What you see in the demo has almost no relationship to what your actual production data does inside the system six months later.
- Implementation costs 2 to 5 times the software subscription and almost nobody budgets for it upfront. Manufacturers keep getting blindsided by this.
- The SAP ECC deadline is pushing manufacturers into rushed S/4HANA migrations without properly evaluating whether it is actually the right system for their operation. A migration off ECC is a full reimplementation. If you are reimplementing anyway, you should be looking at everything.
All of this matches exactly what I saw from the inside. The selection process is where these projects fail, not the go-live.
Curious whether engineers and ops people here recognise this pattern. Please say what sector and company size you are coming from before replying.
References: Full breakdown here.