Why ERP Projects Fail at SMEs — and How to Avoid It

Buying software before understanding the problem

Many businesses choose an ERP based on an impressive demo or vendor recommendation — without mapping which processes need to change, what data needs migrating, or who the actual end users are. Result: the system gets installed but not used.

Scope too large for the first rollout

Wanting to do everything at once — accounting, inventory, sales, HR, production. Scope expands, timelines stretch, the team burns out. Typically ends with "we use about 30% of the features."

No ownership from the business side

The project is handed entirely to the vendor or an IT person. Leadership is not involved, end users are not consulted. At handover, no one wants to use a system that does not reflect how they actually work.

Legacy data is not cleaned before migration

Importing raw Excel data into ERP — including errors, duplicates, and non-standardised formats. Garbage in, garbage out. The new system produces results that cannot be trusted.

No change management plan

Staff are used to the old way. Without training, support, and a clear reason why the new way is better — they go back to Excel within weeks.

Language and Cultural Barriers (For Japanese Companies)

For Japanese companies in Vietnam, there is often a huge gap between HQ expectations and local vendor execution. Local vendors may not understand JP-standard reporting, leading to a breakdown in trust and communication.