Enterprise resource planning (ERP) software is an integrated technology solution meant to streamline critical business processes, increasing business efficiency and profitability. So what happens when things go wrong?

In 2013 Avon Products Inc. pulled the plug on its $125 million ERP implementation. The software had been rolled out for testing in Avon's Canadian branch and was expected to be expanded globally thereafter. However, upon introduction the software disrupted regular operations and was so difficult to use that employees began leaving the company in droves. Karen Edwards, an independent executive sales leader for Avon, estimated at the time that Avon lost approximately 16,000 independent sales representatives across Canada. 

It is well-known that successful ERP implementations unfold as planned, stay on schedule and on budget, and produce the desired results — so why do things go so wrong sometimes? 

A company needs to know its own strengths, competencies and deficiencies to understand precisely how and why ERP is a good option. Many businesses fail to conduct detailed operational assessments or gain input from stakeholders. In Avon's case the cosmetics firm wanted an application that allowed independent sales reps to use their tablets to digitize consumer experiences. Yet, when the software was introduced it was too hard for the average representative to use.

Avon's reps are not onsite and available for training. Many of them work part-time and have partnered with Avon precisely because it allows them to earn an income by networking amongst friends and acquaintances. A highly technically ERP implementation that was not user-friendly denied the realities of who Avon's employees were and how they worked. Avon might have avoided the failed implementation if they had taken the time to consider their key stakeholders and understood their requirements before beginning the project.

Interested in learning more about ERP or other business management software? Contact Accent Software today.