ERP Transformation: Why Most Projects Fail — And How to Fix Them

Let’s face it — many ERP projects fail to meet expectations. They go over budget, miss deadlines, or fail to deliver real business value. And surprisingly, it’s rarely because of the technology itself.

It’s the foundation that’s missing.

Too many companies rush into implementation, skipping the more profound work: aligning their people, processes, and technology.

At OB Consultech, we call these the Three Pillars of Change Management. Without them, no digital transformation can succeed.

🏛️ The Three Pillars of Change Management

1. People – Start with your team

Technology can’t drive change if your people aren’t ready. You need leaders who support the transformation, and teams that feel empowered to work in new ways.

👉 Example: You're rolling out an AI-based forecasting platform for your Finance team. The tool will gather dust if analysts don’t know how to interpret model outputs — or if leadership doesn’t reinforce the shift toward predictive planning.

What works:

• Training your finance team on AI tools

• Promoting data storytelling in team meetings

• Having the CFO visibly back the initiative

2. Processes – Clean up how work gets done

You can’t automate chaos. Before going live with new systems, ensure your business processes are clean, consistent, and integrated across teams.

👉 Example: Every department has its own Excel template for budgeting. If you introduce a new planning tool without harmonizing those templates and workflows, the outcome will be confusion, not clarity.

What helps:

• Shifting from static budgets to rolling forecasts

• Creating standard data input templates

• Cleaning up master data across systems

3. Technology – Support, don’t lead

The right tools enable change, but they don’t create it.

👉 Example: You're implementing SAP S/4HANA for Group Reporting, SAP Analytics Cloud for Planning, or CCH® Tagetik for consolidation and performance management. But these tools won't deliver value if your processes aren’t mapped or your data isn’t governed.

Smart moves:

• Choose tools that align with business needs, not just trends..

• Embed AI into planning and forecast cycles

• Build dashboards that support daily decisions, not just monthly reviews.

⚠️ Why ERP Projects Fail (Despite Great Tools)

After years of implementing SAP systems, I’ve seen this pattern repeat:

🚫 Poor data🚫 Broken workflows🚫 No clear ownership

Even the best platform won’t save you if the foundation is weak. It’ll just amplify existing problems.

✅ What to Focus on First

If you’re starting a new project — or recovering from one that derailed — ask yourself:

• Have we cleaned and governed our data?

• Do our processes support better decisions?

• Are our teams trained, aligned, and bought in?

Once those pillars are strong, the tools you bring in will finally do what they’re supposed to.

🔮 On My Radar: SAP Sapphire 2025

I'll be attending SAP Sapphire to explore the future of finance and planning:

• SAP Joule – GenAI copilots built into SAP apps to accelerate insight and productivity

• SAP Business Technology Platform (BTP) – A foundation for integrating SAP and non-SAP tools

• SAP Business Data Fabric / Business Data Cloud – Creating unified, governed, and AI-ready finance data layers

📬 Let’s connect if you’re exploring:

• AI in Finance

• ERP modernization

• Rebuilding your FP&A and consolidation reporting strategy