5 famous ERP myths shattered

This post was originally published in May 2017 and was updated in August 2025 with additional information on the real costs of ERP failure, ERP in 2025, and more.

ERP investments: What finance leaders need to know

Enterprise Resource Planning (ERP) systems serve as essential backbones for modern organizations—but costly misconceptions and unrealistic expectations often derail implementation efforts. As a finance leader, you’ve likely encountered these ERP myths that have contributed to some of the most expensive failures in business history. Understanding what went wrong can help your organization avoid the same costly mistakes and maximize your ERP investment.

ERPs (enterprise resource planning) are one of the largest IT investments an organization will ever make. Unfortunately, major misconceptions and myths about ERPs have led to very costly and damaging mistakes for even the biggest corporations. Here are a few famous fails that garnered the biggest headlines:

• Hershey’s failed ERP implementation prevented them from delivering $100 million worth of chocolate before Halloween, causing the stock to dip 8% in 1999.
• The University of Massachusetts failed its 27,000 students back in 2004 when a poor ERP implementation left students unable to register for classes or collect financial aid checks.
• HP tried to centralize its disparate ERP systems with less than stellar results. The final cost of the project ended up being $160 million, more than 5 times the initial estimate.
• Nike lost $100 million in sales in 2000 when an ERP project went south. Their stock dipped 20% and led to a series of lawsuits.

This vital business technology has many strengths and advantages, but it’s time to shed light on some of the challenges and limitations. Let’s explore the truth about ERPs and debunk the myths.

Read the blog → Modern ERP payment processing

1 – ERPs are easy to implement, maintain, and upgrade.

False. One of the biggest complaints that organizations have about enterprise resource planning (ERP) projects is the time it takes to get a new system up and running. In fact, 75% of ERP projects fail according to analyst estimates. The average time for an ERP project, from start to completion is 14 months, but it can take anywhere from a few months to 5 years. A recent study showed that more than 57% of them take longer than the projected timeline. The main reasons cited are the expensive costs, the disruption to the organization, inefficiency issues, and limited IT resources.

2 – ERPs can solve any business challenge.

False. Most businesses don’t have employees with the expertise to maximize enterprise resource planning (ERP) success. On top of that, few hire outside help to train employees and customize the system to meet their own needs. It’s no wonder that 37% of companies find it difficult for their staff to adapt to processes using a new ERP.

The truth is that most ERPs require customization to meet each organization’s unique business needs. They may require further integration with POS, accounting, CRM, and other solutions already in use, and will continue to need IT support on a regular basis.

3 – An ERP is the only solution I need to solve any business challenge.

False. While you need an ERP to act as the backbone of your company, it plays a very specific role within your back-end management. If you use it to accomplish every task, such as sending an invoice and collecting payments, you’ll discover that it is inefficient for most departments within your organization. ERPs don’t usually have a simple interface, and lack flexibility and nuance to handle tasks easily.

Let’s not forget that more than 54% of enterprise resource planning (ERP) projects go over budget. Most organizations will spend 6.4% of their annual revenue on an ERP project. It can take years to realize the ROI for your ERP, while your team members will be stuck using manual methods for tracking data. There are better solutions that integrate with your ERP and are designed to handle specific functions better than you can imagine.

4 – ERPs give you access to all of your data whenever you need it.

False. Unless you’re an ERP expert and a data analyst, it can be difficult to get access to the metrics and analysis that help you make smarter business decisions. Over 60% of organizations suffer from poor visibility of data and poor integration in their enterprise resource planning (ERP) systems. If it’s too complex to get the information you need when you need it, you’ll waste time and money, and you may not be able to identify and resolve inconsistencies in many of your processes. And many delays will lead to wasteful spending and delayed action. 

Want to stay ahead of the competition? Use solutions with robust dashboards and up-to-the-minute reporting tools that integrate with your ERP to help you see the big picture.

5 – An ERP is a one-time investment.

False. The average lifespan of an ERP is about 7 to 10 years before it’s outdated, obsolete, or just can’t keep up with the functions and pace of your business. An ERP is a long-term data management solution, but it’s not designed to handle the day-to-day tasks that keep your business moving forward and your customers happy.

Feeling like your ERP is holding you back? Dive into our eBook: Accounts Receivable Automation: Customize Your ERP or Buy Software?

The financial impact of ERP setbacks

ERP software promises improved visibility and scalability—but when ERP implementations fail, the financial impact on your organization can be significant. Understanding the potential risks helps you make more informed decisions about your ERP strategy.

Research shows that ERP project challenges are more common than many finance leaders realize:

• Timeline delays: Projects frequently extend beyond planned timelines, impacting budgets and resource allocation.
• Budget overruns: Implementation costs often exceed initial estimates due to unforeseen integration complexities and customization needs.
• Operational disruptions: Poor planning can lead to temporary workflow interruptions that affect productivity and customer service.

The key insight for finance leaders? Careful planning, realistic expectations, and the right implementation strategy can help you avoid these common pitfalls while maximizing your ERP investment.

Five factors that derail ERP projects (and how to avoid them)

ERP implementation challenges don’t happen overnight—they typically result from planning gaps that can be addressed with the right approach. Understanding these frequent issues can help you develop a more successful strategy for your organization.

Inadequate change management

Many finance leaders focus heavily on the technical aspects while underestimating the importance of preparing your team for new workflows. Your employees need proper training and involvement in the process to embrace new systems.

Unrealistic project planning

Setting overly aggressive timelines or underestimating the true scope of integration, ongoing support, and necessary customization can create unnecessary pressure on your implementation.

Limited cross-functional alignment

Without strong leadership commitment and coordination across departments, your ERP project may struggle to meet the diverse needs of different business functions.

Over-customization

Trying to replicate every existing process within your new ERP system often creates complexity that makes the system harder to maintain and upgrade over time.

Integration gaps

Your ERP needs to work with existing systems like CRMs, payment platforms, and analytics tools. Planning for these connections early prevents data silos and manual workarounds.

A phased approach with strong change management and realistic expectations sets the foundation for ERP success in your organization.

Read the blog → Enhance your ERP with accounts receivable automation

How modern ERP systems are evolving to meet your needs

As business environments become more dynamic, ERP systems are evolving to better serve your organization’s needs. Modern ERPs go beyond traditional back-office management to enable real-time decision-making, enhanced scalability, and improved user experiences that can strengthen your competitive position.

Here are five ERP trends that will impact your technology strategy:

• Cloud-first architectures: Cloud-based ERP solutions offer your organization greater scalability, faster deployment, and lower upfront costs compared to traditional on-premise systems.
• Composable ERP approaches: Organizations are adopting modular ERP architectures that enable you to integrate specialized tools for payments, billing, and analytics through APIs without requiring complete system overhauls.
• AI and automation integration: Modern ERPs increasingly incorporate AI for predictive analytics, intelligent forecasting, and automated workflows—reducing manual work while improving the accuracy of your financial processes.
• User-focused design: Contemporary ERP interfaces prioritize intuitive dashboards with real-time insights and mobile access, enabling you to access critical information and make decisions from anywhere.
• Enhanced security and data protection: Modern ERPs embed advanced security features and role-based access controls to protect your organization’s sensitive financial data and maintain regulatory standards.

ERP systems in 2025 will be more flexible, intelligent, and connected—positioning your organization for success when you take a strategic approach to selection and implementation.

Cintas Saves $1M with Billtrust

By integrating Billtrust with their ERP system, Cintas saves over $1 million annually and recognizes productivity gains equivalent to 14 people. Listen to the story.

Getting more value from your ERP investment

Your ERP is the backbone of your business, but it shouldn’t be a bottleneck for your cash flow. If you’re struggling with fragmented data, manual collections, and integration gaps, let Billtrust’s AR automation platform show you how to augment your ERP investment. Connect with Billtrust’s team of experts to see how we can help you work smarter and get paid faster.