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🧩 Why ERP Projects Fail in Bangladesh β€” Real Causes, Examples & Lessons for Businesses

🧩 Why ERP Projects Fail in Bangladesh β€” The Real Story - FreeLearning365.com

🧩 Why ERP Projects Fail β€” The Real Story

ERP (Enterprise Resource Planning) systems promise automation, efficiency, and real-time decision-making.
But in Bangladesh, over 70% of ERP projects fail or never deliver the expected ROI.

Let’s uncover the real story behind these failures β€” packed with humor, realism, and valuable lessons for every business owner, IT manager, and developer.

βš™οΈ 1️⃣ Lack of Clear Business Requirements

πŸ—£οΈ "Software Banailam, Kintu Ki Lagbe Buji Nai!"
πŸ’¬ We built the software, but didn’t know what we actually needed!

Many Bangladeshi businesses jump into ERP without documenting their workflows β€”
no clear understanding of costing, approvals, or reporting needs.

πŸ“Š Teams can’t even answer:

  • What are your approval steps?

  • Who owns inventory reconciliation?

  • Which KPIs should your dashboard show?

🧠 Lesson: ERP isn’t magic β€” it mirrors your process.
Unclear process = unclear system.

πŸ’Έ 2️⃣ Management Expecting Instant ROI

πŸ—£οΈ "Ek Mash-e Sob Automate Hoye Jabe!"
πŸ’¬ Everything will be automated in one month!

Many executives expect ROI within weeks. In reality, ERP payback comes after 6–18 months .

⏳ Result: Unrealistic deadlines β†’ poor testing β†’ half-baked go-live β†’ frustration.

🧠 Lesson: ERP is like planting a tree 🌳 β€” water it regularly before expecting fruit.

πŸ§β€β™‚οΈ 3️⃣ Employee Resistance

πŸ—£οΈ "Ekhon Sob Record Kortey Hobe?"
πŸ’¬ Now we have to record everything?

Employees often fear that ERP will track their inefficiencies or make their jobs harder.
Without training, they simply avoid using it.

🧠 Lesson: ERP success = user adoption.
Train, motivate, and involve staff from day one.

βš’οΈ 4️⃣ Over-Customization

πŸ—£οΈ "Sob Kichu Amader Moto Korte Hobe!"
πŸ’¬ Make everything our way!

Too much customization makes ERP fragile, slow, and unmaintainable.
Example: A company added 30+ custom reports β€” afterthe update, half broke.

🧠 Lesson: Use standard ERP logic. Customize only what’s truly necessary.

🧹 5️⃣ Weak Data Discipline

πŸ—£οΈ "Old Data Clean Nai!"
πŸ’¬ Our old data is messy.

Duplicate customers, wrong codes, missing balances β€” ERP becomes useless.

🧠 Lesson: Clean your data before migration β€”
like cleaning your house before moving 🧽.

πŸ’° 6️⃣ Vendor Selection Based on Price

πŸ—£οΈ "Cheapest Nilam, Quality Nai."
πŸ’¬ We hired the cheapest vendor, got zero quality.

ERP is not a one-time website.
Choosing the lowest bidder often means no documentation, security, or support.

🧠 Lesson: Cheap ERP = Expensive failure.
Quality costs less in the long run.

πŸ§‘β€πŸ« 7️⃣ Lack of Continuous Support & Training

Many systems die after go-live because users forget how to use them.
No refresh training = system abandonment.

🧠 Lesson: ERP is not install-and-forget β€” it’s a continuous learning journey .

⚑ 8️⃣ Technology Gap & Infrastructure Issues

Old PCs πŸ’» + weak internet 🌐 + no UPS ⚑ = ERP disaster.
If infrastructure fails, data sync fails.

🧠 Lesson: Use cloud or hybrid ERP with stable hosting and backups.

🧱 9️⃣ Uncooperative Stakeholders

πŸ—£οΈ "Each department acts like its own kingdom."
πŸ’¬ HR, Accounts, and Production don’t share data.

ERP fails because departments don’t cooperate .

🧠 Lesson: ERP = Enterprise Resource Planning, not Individual Resource Planning.

πŸ•΅οΈ 10️⃣ Hidden or Critical Requirements Raised During UAT

πŸ—£οΈ "We didn’t mention this earlier, but now we need it."

Users reveal major requirements after the system is built β€”
causing cost overruns and rework.

🧠 Lesson: Capture everything early.
Use workshops, mock screens, and flow diagrams.

πŸ’³ 11️⃣ Budget Constraints

πŸ—£οΈ "Cheapest vendor nilam, abar customization chai!"
πŸ’¬ We took the cheapest vendor, but now want premium features!

ERP needs investment β€” in software, training, and support.

🧠 Lesson: Don’t treat ERP like a cost β€” treat it as a long-term investment.

πŸ•°οΈ 12️⃣ Unrealistic Time Calculations

πŸ—£οΈ "3 months e full ERP chahi!"
πŸ’¬ We want a full ERP in 3 months!

ERP implementation includes design, migration, testing, and adoption.
Shortcut = system collapse.

🧠 Lesson: Quality takes time.
Fast projects often fail.

🧩 13️⃣ Poor Project Management & Coordination

πŸ—£οΈ "Meetings holo, kintu action nai."
πŸ’¬ We had meetings, but no results.

Without a dedicated project manager, communication breaks and timelines slip.

🧠 Lesson: Every ERP needs a strong project manager linking IT, vendor, and business.

πŸ‘“ 14️⃣ Unskilled or Less-Skilled Business Analyst

πŸ—£οΈ "BA didn’t understand the workflow."

Weak analysis = weak ERP logic.
When the Business Analyst can’t convert user needs into technical specs, everything collapses.

🧠 Lesson: A skilled BA is your ERP translator β€” hire domain experts, not just coders.

πŸ”„ 15️⃣ Data Migration Disaster

πŸ—£οΈ "Old system theke data ashe nai!"
πŸ’¬ Data didn’t migrate properly.

Inconsistent formats, wrong codes, and missing links destroy system accuracy.

🧠 Lesson: Test migration multiple times before go-live.
Validate every master file and opening balance.

🌍 Final Thoughts

ERP failure is not about bad software β€” It’s about weak planning, unclear processes, and a lack of ownership.

Bangladeshi companies can succeed by:
βœ… Documenting workflows
βœ… Training users
βœ… Cleaning data
βœ… Setting realistic timelines
βœ… Choosing skilled partners

πŸ’‘ Remember: ERP success begins when leadership says

"Let’s fix our process first β€” then automate."

My Full Article Link: https://www.freelearning365.com/2025/10/why-erp-projects-fail-in-bangladesh.html

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