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Why 70% of ERP Implementations Fail (And How We Fix Them)

ByDarek Szuminski

By The SimplyBC Team | 5 Minute Read

Let’s address the elephant in the boardroom.

You’ve likely heard the horror stories. A company invests heavily in a new ERP system, only to face budget overruns, operational paralysis, or, worst of all, a system that employees refuse to use.

The reality is actually more alarming than the rumors. According to recent Gartner research, by 2027, more than 70% of ERP initiatives will fail to fully meet their original business objectives. Even worse, they predict that 25% will fail catastrophically.

For a decision-maker considering Microsoft Dynamics 365 Business Central, these statistics are terrifying. But here is the secret that most generic software vendors won’t tell you: The software is rarely the problem.

Business Central is a world-class platform. When projects fail, it is almost always because organisations try to replicate legacy habits inside a modern cloud ecosystem.

At Simply BC, we align with modern best practices to ensure successful outcomes. Here are the four most common pitfalls that turn ERP projects into statistics and the specific methodologies we use to ensure you land in the successful 30%.

Pitfall #1: The “Legacy Replica” Trap (Over-Customisation)

The most common reason for scope creep isn’t the software, it’s the desire to make the new system look and behave exactly like the old one.

Many companies fall into the trap of over-customising Business Central to match their 20-year-old workflows. This creates a “Frankenstein” system that is expensive to build, difficult to upgrade, maintain, and prone to bugs.

The SimplyBC Fix: “Fit-to-Standard” First

Instead of writing code to replicate your old habits, we use a “Fit-to-Standard” methodology.

  • Adopt Best Practices: Business Central comes pre-loaded with modern industry workflows. We challenge you to adopt these standard processes first.
  • Configuration over Code: We use Business Central’s native configuration options, our partners add-ons and the Power Platform to solve problems without touching the core code.
  • Strategic Customisation: We only write custom code (Extensions) for processes that give you a specific competitive advantage; not for administrative convenience.

Pro Tip: Gartner warns that heavy customisation is a primary driver of ERP failure. Adapting your process to the software is almost always cheaper and more efficient than adapting the software to your process.

Pitfall #2: The “IT Project” Fallacy

The biggest mistake a company can make is handing the implementation to the IT department and walking away. Gartner reports that 75% of ERP strategies are not strongly aligned with the overall business strategy.

If the CFO, COO, and Department Heads aren’t driving the requirements, the system will technically “work”, but it won’t deliver business value.

The SimplyBC Fix: Business-Led Transformation

ERP is not an IT project; it is a business transformation. Before we write a single line of code, we require a Project Sponsor from your team. We facilitate workshops that bridge the gap between your boardroom goals and our technical execution.

Pitfall #3: Dirty Data Migration

“Garbage in, garbage out.” Data governance is cited by analysts as a major roadblock. If you migrate 10 years of duplicate customers, obsolete inventory items, and messy vendor data into Business Central, you will immediately hate your new system.

The SimplyBC Fix: The Pre-Migration Audit

We view migration as a spring cleaning opportunity.

  • Cleanse: We provide templates to help you de-duplicate and validate data before it enters the system.
  • Archive: We advise on what historical data should be left in the old system versus what is critical for Day 1.
  • AI-Readiness: We ensure your data structure is clean enough to support Microsoft Copilot and AI analytics later on.

Pitfall #4: Lack of User Training and Adoption

You can build the Ferrari of ERP systems, but if you hand the keys to someone who has never driven a car, they will crash it. Training is often the first thing cut when budgets get tight, yet it is the single most critical factor in ROI.

The SimplyBC Fix: Role-Based Empowerment

We don’t do generic “watch this video” training. We utilise a “Train the Trainer” approach.

  1. Identify Champions: We find Super Users within your organisation.
  2. Real-World Scenarios: We create role-specific scenarios using your actual data.
  3. Confidence: When Go-Live day arrives, your team isn’t panicked, they are empowered.

FAQ: Common Questions About Implementation

We strongly advise against it. This is the “Legacy Replica” trap. Instead of writing expensive custom code to mimic your old system, we recommend a “Fit-to-Standard” approach: adapt your workflows to Business Central’s modern best practices first. If a unique process is truly critical for your competitive advantage, we build it properly using Extensions or the Microsoft Power Platform so it doesn’t break future updates.

According to Gartner and our own experience, failure is rarely caused by the software bugs. It is caused by strategic misalignment. Projects fail when companies treat ERP as a simple IT installation rather than a business transformation, or when they try to force the new system to behave exactly like the old one.

MVP stands for Minimum Viable Product. Instead of trying to launch a perfect, fully customised system on Day 1 (which takes years), we focus on getting your core financials and operations live quickly using standard functionality. We then add “nice-to-have” features in subsequent phases once your team is comfortable with the system.

Technically, you can buy a license, but implementing an ERP alone is like building a house without an architect. Business Central is a complex, robust engine that requires precise configuration. A partner like SimplyBC is essential to navigate the thousands of setup options, manage the data migration, and enforce the “Fit-to-Standard” strategy that prevents project failure.

For more insights, visit our Frequently Asked Questions section.

The Bottom Line

The high failure rates predicted by Gartner are preventable. They are the result of poor planning, weak leadership, and inexperienced partners who treat ERP as a one-time software install rather than an evolving business strategy.

At SimplyBC, we have refined our methodology to mitigate these exact risks. We don’t just want to install Business Central for you; we want to transform how you do business.

Are you ready to beat the odds? Don’t leave your ERP implementation to chance. Partner with the experts who put process and people first.

Contact Simply BC Today for a Free Discovery Call

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