Flevy Management Insights Q&A
What are the common pitfalls in ERP requirements gathering and how can they be avoided?
     David Tang    |    Requirements Gathering


This article provides a detailed response to: What are the common pitfalls in ERP requirements gathering and how can they be avoided? For a comprehensive understanding of Requirements Gathering, we also include relevant case studies for further reading and links to Requirements Gathering best practice resources.

TLDR Avoiding pitfalls in ERP requirements gathering involves strategic Stakeholder Engagement, clear Objectives and Scope Definition, and effective Requirements Documentation and Management for successful implementation.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Stakeholder Engagement mean?
What does Objectives and Scope Definition mean?
What does Requirements Documentation mean?


Enterprise Resource Planning (ERP) systems are critical for the seamless operation and strategic management of modern organizations. However, the process of gathering requirements for an ERP implementation is fraught with challenges that can lead to project delays, budget overruns, and, ultimately, failure to meet the organization's strategic objectives. Understanding these pitfalls and adopting strategies to avoid them is essential for a successful ERP deployment.

Insufficient Stakeholder Engagement

One of the most common pitfalls in ERP requirements gathering is insufficient stakeholder engagement. This occurs when project teams fail to involve key stakeholders from every department that will be affected by the ERP system throughout the entire process. The lack of involvement can result in a misalignment between the ERP solutions and the actual needs of the organization. Stakeholders, when not adequately consulted, may feel alienated, leading to resistance during the implementation phase. To avoid this pitfall, organizations should establish a comprehensive stakeholder engagement plan that includes regular meetings, workshops, and feedback sessions. This ensures that the requirements gathered reflect the true needs of the organization, fostering a sense of ownership and easing the change management process.

Moreover, engaging stakeholders early and often helps in identifying and prioritizing requirements more effectively. It allows for the clarification of expectations and the identification of potential conflicts between departments' needs. By fostering open communication and collaboration from the outset, organizations can ensure that the ERP system supports cross-functional processes and facilitates better decision-making.

Real-world examples of successful stakeholder engagement often involve creating cross-functional teams that include representatives from all levels of the organization. These teams work collaboratively to define business processes, identify key requirements, and provide continuous feedback throughout the ERP project lifecycle. This approach not only improves the accuracy of requirements gathering but also builds a strong foundation for the successful adoption of the ERP system.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Lack of Clear Objectives and Scope Definition

A clear definition of objectives and scope is crucial for the success of any ERP implementation project. Without clear objectives, the project can easily veer off course, leading to scope creep, where the project's requirements continue to change and expand over time. This can significantly increase the time and cost of the project, putting the organization's return on investment at risk. To avoid this, organizations must define and document their strategic objectives and project scope at the outset. This includes establishing measurable goals, success criteria, and project boundaries.

Defining clear objectives and scope helps in aligning the ERP project with the organization's strategic goals. It provides a framework for decision-making and prioritization of requirements, ensuring that the ERP system delivers the desired value. Additionally, a well-defined project scope acts as a reference point for managing changes to requirements, helping to control scope creep and maintain project focus.

Case studies from leading consulting firms often highlight the importance of a robust project charter that outlines the project's objectives, scope, and constraints. This document serves as a guide for the project team and stakeholders, ensuring that everyone is aligned and working towards the same goals. By establishing clear objectives and a defined scope, organizations can streamline the requirements gathering process and enhance the overall success of the ERP implementation.

Inadequate Requirements Documentation and Management

Another significant pitfall in ERP requirements gathering is inadequate documentation and management of requirements. Proper documentation is essential for ensuring that all requirements are accurately captured, understood, and communicated among the project team and stakeholders. Without it, critical details can be lost, misunderstood, or overlooked, leading to gaps in the ERP solution and dissatisfaction among users. Organizations should adopt a structured approach to requirements documentation, utilizing standardized templates and tools to capture, organize, and track requirements throughout the project lifecycle.

Effective requirements management also involves regular review and validation sessions with stakeholders to confirm that the documented requirements accurately reflect their needs and expectations. This iterative process helps in identifying discrepancies early and making necessary adjustments before they impact the project timeline or budget.

Successful organizations leverage requirements management software tools that facilitate collaboration, version control, and traceability of requirements. These tools enable project teams to maintain a single source of truth for all requirements, reducing the risk of errors and inconsistencies. For example, adopting agile methodologies for ERP implementation allows for continuous refinement and prioritization of requirements, ensuring that the ERP system evolves to meet the changing needs of the organization.

In conclusion, avoiding common pitfalls in ERP requirements gathering requires a strategic approach that emphasizes stakeholder engagement, clear objectives and scope definition, and effective documentation and management of requirements. By adopting best practices in these areas, organizations can significantly increase the likelihood of a successful ERP implementation that delivers lasting value and supports the achievement of strategic goals.

Best Practices in Requirements Gathering

Here are best practices relevant to Requirements Gathering from the Flevy Marketplace. View all our Requirements Gathering materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Requirements Gathering

Requirements Gathering Case Studies

For a practical understanding of Requirements Gathering, take a look at these case studies.

E-commerce Platform Scalability for Retailer in Digital Marketplace

Scenario: The organization is a mid-sized e-commerce retailer specializing in lifestyle products in a competitive digital marketplace.

Read Full Case Study

Revenue Growth Strategy for Media Firm in Digital Content Distribution

Scenario: The organization is a player in the digital media space, grappling with the need to redefine its Business Requirements to adapt to the rapidly evolving landscape of digital content distribution.

Read Full Case Study

Curriculum Development Strategy for Private Education Sector in North America

Scenario: A private educational institution in North America is facing challenges in aligning its curriculum with evolving industry standards and student expectations.

Read Full Case Study

Machinery Manufacturer's Strategic Business Requirements Framework to Address Efficiency Decline

Scenario: A machinery manufacturing company faced strategic challenges in aligning its business requirements framework with operational goals.

Read Full Case Study

Telecom Infrastructure Strategy for Broadband Provider in Competitive Market

Scenario: A telecom firm specializing in broadband services is grappling with the need to upgrade its aging infrastructure to meet the demands of a rapidly evolving and competitive market.

Read Full Case Study

Customer Retention Enhancement in Luxury Retail

Scenario: The organization in question operates within the luxury retail sector, facing significant challenges in maintaining a robust customer retention rate.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

    – Michael Duff, Managing Director at Change Strategy (UK)
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

    – Moritz Bernhoerster, Global Sourcing Director at Fortune 500
  •  
    "As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

    – David Coloma, Consulting Area Manager at Cynertia Consulting
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

    – Michael Evans, Managing Director at Newport LLC
  •  
    "One of the great discoveries that I have made for my business is the Flevy library of training materials.

    As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

    – Ed Kemmerling, Senior Lean Transformation Expert at PMG
  •  
    "I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

    – Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.