Why ERP Implementations Fail—and How to Make Sure Yours Doesn’t

By Dan Jeppson
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Implementing an ERP system is one of the most significant and important undertakings a mid-market business can face. ERP software can be a game-changer by leveraging streamlined operations, data-driven decision-making, and greater efficiency. All too often, however, those promises go unfulfilled. Instead of success stories, we hear of ERP implementation failures—some costing millions, others damaging reputations, and many ending in lawsuits. 

So why does ERP implementation fail? More importantly, how can your business avoid becoming another cautionary tale? 

In this article, we’ll explore the most common reasons ERP implementations go off the rails, highlight real-world examples of high-profile ERP mishaps, and show you how working with an experienced implementation partner like Xcellerated Solutions can make all the difference. 

ERP systems (like Acumatica, Batch Master, NetSuite, Microsoft Dynamics 365, Sage Intacct/X3, and SAP Business One) are designed to unify critical business functions including accounting, inventory, CRM, and supply chain operations. But their complexity also makes them risky. 

A 2022 report by McKinsey found that more than 70% of ERP projects either fail outright or do not meet their intended goals. ERP failures can be very costly. Consider a few notable public examples: 

• Lidl, the European grocery retailer, spent over €500 million on a failed SAP implementation, eventually abandoning the project after years of effort. 

• Revlon’s troubled SAP rollout caused manufacturing delays and missed shipments, triggering a shareholder lawsuit and a public black eye. 

• National Grid, a U.S.-based utility company, experienced months of disruption after a failed SAP project and ended up suing its implementation partner for $140 million in damages. 

These examples demonstrate that even billion-dollar companies can suffer when ERP implementations go wrong. But mid-market businesses, with more limited budgets and leaner teams, are arguably at even greater risk. 

While every failed ERP implementation has its unique story, patterns do emerge. Here are the most common reasons projects falter: 

1. Unclear Business Goals

ERP should support your long-term strategy. Too often, companies dive into implementation with vague objectives or undefined KPIs. Without a clear target, it’s easy to drift off-course and lose focus during execution. 

2. Neglecting Change Management

ERP implementations affect every department and role. When users don’t understand the “why” behind changes—or don’t receive adequate training—they resist adoption. A lack of engagement leads to user error, workarounds, and failure to realize ROI.

Additionally, it’s important to educate both management and end users on the psychological effects of changing business operating systems.  Although a system can be better, easier, more robust and accurate, etc., the frustration of a different work flow can quickly become overwhelming.  Good change management includes setting the expectations early that it WILL BE HARD AT FIRST, but will soon make life much easier than it ever has been. 

3. Rushed or Incomplete Testing

Skipping key phases of user acceptance testing (UAT), performance testing, or data validation almost guarantees post-launch chaos. ERP systems touch everything from financials to fulfillment—bugs and errors can paralyze operations. 

4. Over-Customization and Scope Creep

Mid-market companies often try to bend the ERP software to match every legacy process. The result is costly customizations that break with upgrades and bloat the system. ERP platforms like Microsoft Dynamics or SAP can be deeply tailored—but that doesn’t mean they should be without strategic justification. 

5. Inexperienced Implementation Partners

The software may be robust—but if the team implementing it lacks experience, industry knowledge, or follow-through, failure is likely. Many failed ERP rollouts stem not from software flaws, but from avoidable implementation mistakes.

Understanding failure points helps organizations prevent them. Here are proven strategies for setting your ERP implementation up for success: 

✅ Define Success Metrics Early 

Set measurable goals: reduced inventory carrying costs, faster order-to-cash cycles, improved reporting accuracy, etc. Align the ERP configuration to support those specific objectives. 

✅ Communicate and Train Continuously 

Change management isn’t a one-time event—it’s a process. Keep stakeholders informed from planning to go-live. Provide role-specific training and prioritize power users to become internal champions. 

✅ Focus on Phased Rollouts 

Don’t try to do everything at once. Phased deployments allow for testing, feedback, and adjustments, reducing the risk of a catastrophic launch. 

✅ Don’t Over-Customize 

Resist the temptation to replicate every legacy workflow. Instead, improve and streamline processes with built-in ERP best practices. Systems like Acumatica offer flexible configurations without requiring deep code customizations. 

One of the most underestimated causes of ERP implementation failure is working with the wrong partner. 

Even the most powerful ERP platforms—Acumatica, Batch Master, NetSuite, Microsoft Dynamics, Sage, and SAP—can’t save a project from poor implementation. It’s not just about the software—it’s about who’s guiding the process. 

Here are a few scenarios that illustrate what can go wrong when the implementation partner isn’t up to the task: 

🚨 Lack of Industry Expertise 

An ERP partner unfamiliar with your industry may miss key nuances. For example, a partner implementing Acumatica for a manufacturer without understanding shop floor scheduling can build a system that looks right on paper but doesn’t work in practice. The result? Delayed production and frustrated employees. 

🚨 Inadequate Project Management 

Some ERP consultants are technically capable but lack project management discipline. If deadlines slip, requirements aren’t documented, or scope creep isn’t controlled, the project can spiral. Failed timelines, budget overruns, and half-baked launches are the common outcomes. 

🚨 Overpromising and Underdelivering 

Too many ERP vendors oversell what’s possible, claiming “out-of-the-box” compatibility or aggressive go-live dates. When the reality doesn’t match the promise, businesses are left with unfinished systems and no accountability. 

🚨 Poor Post-Go-Live Support 

Even after a successful go-live, users need support. If your implementation partner disappears after deployment, small issues can snowball into major operational disruptions. A good partner provides training, documentation, and a runway of post-launch support. 

At Xcellerated Solutions, we’ve seen it all—and we’ve helped companies recover from ERP failures caused by inexperienced partners. More importantly, we’ve helped hundreds of mid-market businesses avoid those failures in the first place. 

Here’s why clients trust us for their Acumatica, BatchMaster, NetSuite, Microsoft Dynamics, Sage, and SAP Business One implementations: 

🎯 Business-Driven, Not Software-Driven 

We build ERP solutions around your business—not the other way around. We take the time to understand your workflows, goals, and competitive edge before recommending a system or module. 

🛠️ Hands-On, Industry-Savvy Consultants 

We don’t send in junior consultants with generic playbooks. Our team includes seasoned professionals who’ve worked inside manufacturing floors, distribution warehouses, and finance departments. We speak your language. 

📋 Proven Methodology That Delivers 

Our implementation roadmap includes detailed planning, comprehensive testing, rigorous change management, and post-launch optimization. We believe success doesn’t stop at go-live—it starts there. 

🤝 We’re In It With You 

We pride ourselves on long-term relationships. Whether it’s a Phase 2 rollout, process optimization, or cloud migration, we stick around to ensure you continue to grow and succeed. 

ERP implementation failure is not inevitable—but it is all too common without the right strategy, leadership, and partner. Choosing the right ERP system is only the first step. What determines success is how well the system is implemented, how well your people are supported, and how closely your partner is aligned with your vision. 

Whether you’re looking to implement Acumatica, Microsoft Dynamics, Sage Intacct, NetSuite, or SAP Business One, trust the experts who bring clarity, structure, and results. 

👉 Contact Xcellerated Solutions today to learn how we can help you plan smarter, implement faster, and realize the full value of your ERP investment.