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Why ERP projects fail – and how to avoid the common pitfalls
Author: Anton Dusén
Mar 31, 2025
ERP systems have become central to business operations. As companies evolve and digital complexity increases, ERP becomes the backbone that enables process efficiency, data integrity, and scalability. Still, ERP implementations are among the most demanding change initiatives an organization can undertake; many fail to deliver expected results.
While system selection and technical fit are important, most implementation challenges stem from how the project is approached. In our experience, two broad categories of risks consistently emerge:
Structural imbalances in how project roles and responsibilities are allocated
Execution-related challenges that often fall into the realm of change management, governance, and design decisions
And now we’ll dive deeper into these common mistakes and how to tackle them.
The importance of shared ownership and balanced expertise
A frequent cause of project strain is the belief that strong internal competence alone is enough to carry out an ERP implementation. Many organizations are staffed with skilled professionals who know the business inside out. That knowledge is critical, but it’s not the whole picture.
ERP projects involve a mix of process transformation, system configuration, development, data migration, and cross-functional coordination. These are not routine projects. They often require experience in navigating vendor limitations, adapting standard functionality to business needs, and managing organizational readiness.
The most successful implementations tend to achieve a balance between internal ownership and external expertise. Internal teams bring knowledge of the business and drive the strategic direction. External consultants contribute with experience from similar projects, structured methods, and the ability to challenge assumptions that may otherwise go unquestioned.
In addition to an internal and external balance, relying on a single large implementation partner may not always be the optimal choice. By instead building your own implementation team with carefully selected external resources whether independent specialists or niche partners, you can ensure that critical project roles are filled with the right competence. This approach gives the organization greater control over quality, continuity, and alignment across all implementation phases.
Rather than choosing between doing it in-house or bringing in help, the key lies in integrating both perspectives into one team with clearly defined roles and mutual respect for what each side brings.
With that teamwork foundation in place, let’s explore how to keep the momentum going.
Navigating the complexity of execution challenges
Even with the right people in place, execution pitfalls are common and often underestimated. These challenges are not necessarily technical. They are mainly rooted in how people plan, communicate, and respond to ambiguity.
Some recurring issues include:
Unclear or shifting project scope
Insufficient stakeholder engagement or ownership
Inadequate change management or communication planning
Low data readiness or overlooked data migration needs
Design decisions that replicate inefficient processes instead of improving them
Underestimating system interdependencies
To reduce risk and enable smoother delivery, there are three areas organizations should focus on:
Active governance and change ownership: Scope management, decision-making, and end-user engagement must be driven actively, not just documented initially. Assign clear roles, make responsibilities visible, and maintain frequent communication across stakeholder groups. Change management isn’t a parallel track; it’s part of the core project delivery.
Challenge complexity early and often: ERP projects are an opportunity to improve, not just digitize. Be intentional about which processes should be rethought rather than rebuilt. Overly complex or outdated processes can become liabilities in any system, no matter how modern.
Treat data migration as a core workstream. Don't defer it. Poor-quality data or misaligned structures can delay Go-Live and cause operational disruptions. Assign data owners early, define clear targets, and integrate data work into the broader project plan from the beginning.
So, to tie it all together: ERP projects stumble when planning’s rushed, teams clash, or data’s ignored. Nail the prep, blend internal and external strengths, and treat data as a priority from day one – that’s the recipe for dodging the pitfalls and crossing the finish line strong.

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