Avoiding the Most Common ERP Challenges with Agile Methodologies

Abstract: Enterprise Resources Planning (ERP) systems benefits to organizations are well known around the world. However, ERP implementation projects are complex, expensive and risky. A recent report that was conducted in 2016 shows that these projects have a quite high failure rate and an average cost of several million dollars per project. Many ERP implementation projects are still executed using waterfall or similar methodologies. While the usage of waterfall methodology in IT projects is decreasing, agile methodologies usage is growing. Agile methodologies have solved many challenges that traditional methodologies like waterfall did not solve in IT projects. This paper aims to find if the current most common ERP implementation challenges can be mitigated or solved by applying agile methodologies or techniques. The study suggests agile solutions for the most common ERP implementation projects challenges. These solutions aim to improve the ERP product selection process, the requirements collection process and the communications process during the ERP implementation project.