The companies acquire ERP systems helps them in managing work with a balanced flow and in a more organized way. They get to have easy access to the information, manage different departments from a single platform. Some companies wanted to streamline their business and started implemented ERP systems but had to meet the failure.
In one of our previous blogs, we discussed one of the ERP failed projects/ERP failure example, i.e. Hershey ERP failure. Companies looking for failure lessons and failure factors of ERP implementation can have a lot to learn from it. There are many reasons for these failures. In this case study, we are going to talk about the Lidl SAP implementation failure. Let’s help you take a walk through their failures for your understanding.
How it all started?
Lidl implemented SAP three years ago, considering their step towards a transformative journey. The goal was to meet the market ends for innovation and efficiency. Initially, they went live with the merchandise management at its Austrian stores in May 2015. The roll-out plan was to reach 10,000 stores and more than 140 logistics hubs. However, now the recent news states that Lidl is dropping the project worth €500m project.
Why did the project fail?
A recent survey study based on 113 individuals shows that across the SAP has failed to companies have failed in the SAP implementation. The reason is common, and that is SAP, not meeting the expectations of the company. The reason for the Lidl SAP implementation failure was:
- It shows that customization is not one of the strengths of the SAP system. Projects are completed successfully with a specific model. Changes, however, demand more and fail SAP.
- In the case of Lidl, it demanded a higher cost for consultation and implementation cost consider the adjustments.
- The company also states that the problem has risen despite the technology solution.
A Lesson Learned
We all know that the system is supposed to ease up the process and help organizations in reaching a higher level of success. Now, most companies fail as they lack business engagement. So, with the failure of Lidl SAP, we have learned to:
·Open to Business Process Reengineering
A willingness to improve process engineering will help you define the helpful processes and separate the changes you need. You need to look closely at the requirement gaps and fix them.
·Follow the defined timelines
The Lidl project spanned around seven years. See, the problem lies in the timelines. You have to adhere to them. Competition doesn’t stop, and the market keeps moving on. So, avoiding intensive customizations will help companies in following deadlines or timelines in a better way.
·Ensure executive alignment
Since the team was in constant fluctuation, managing business alignment or buy-in became tougher. So, it is important to maintain the focus.
·Prioritize organizational change management
Prioritizing internal growth in the team is also important. It seems easy, but it is not. You have a focus on training during the project implementation and help the team understand the smart use of functions.
DFSM ERP Rescue failed project
DFSM can help you in saving your time and money. Talk to our consultants, and they can assess if the project is failing or not. So, they can offer immediate solutions along with the training to help the team learn better use of the ERP system.