Enterprise Resource Planning (ERP) software implementation errors usually seem the result of a series of small, unrelated mistakes. This seemed true for Christina Hanger, the senior vice president of HP's Americas operations and IT, who undertook a project to move one of Hewlett-Packard's biggest North American divisions onto a centralized ERP. She was an experienced IT migration expert, with five successful implementations under her belt and an awareness of everything that could go wrong. 

What happened, however, belied Hanger's preparedness and expertise. The project ended up costing HP $160 million in lost revenue due to order backlog, which was more than five times the project's estimated cost. Gilles Bouchard, the CIO of HP's global operations at the time, said regarding the incident "We had a series of small problems, none of which individually would have been too much to handle. But together they created the perfect storm."

Luckily not every case is this extreme, but it is still proof that it pays to be over-prepared and hyper-ready. ERP projects should only be tackled when everyone involved understands what might go wrong. Here are three often-overlooked reasons ERP implementations fail:

Lack of participation: Business management software affects companies from top to bottom, so everyone should be involved in the project — or at least aware of it. This is especially important for the CEO. Engaged executives ensure that top managers and decision makers are inspired. ERP implementation is a major undertaking, so it's necessary that each employee within the company understands the software and its timeline for arrival.

No data migration plan: Data is the power behind ERP software, which is why it makes little sense to avoid protecting that data. Put procedures in place to protect against data inaccessibility, corruption or loss. Clean up obsolete or redundant data, and decide what needs to be kept and what can be trashed. Data migration is one of the most time-consuming processes in ERP implementation. Make sure that enough time is dedicated to it and to ensuring that data is transferred safely.

Failure to understand key features: If your company doesn't know what the chosen ERP can do and how, you will be left with a software that offers the business limited benefits. Make sure you understand all the functions of a solution and use them. Failing to do this leaves the company with what amounts to a glorified accounting program — which is definitely not what an ERP solution should be.

For more information about ERP applications, such as Microsoft Dynamics NAV, contact Accent Software.