ERP failures & mishaps that should stay in 2024 – What can we learn from them?

As we wave goodbye to 2024, let's take a moment to reflect on some ERP implementation failures that made headlines across the UK and more than likely caused a bunch of sleepless nights. If an ERP project is part of your New Year’s resolutions for 2025, here are some of the lessons we simply must carry forward. 

The Birmingham City Council Saga 

We can’t talk about 2024 ERP mishaps without mentioning Birmingham City Council, who started a huge project to replace their long-standing SAP system, which they have been using for over two decades. The Oracle Fusion ERP transition project saw costs balloon from an initial budget of £19 million all the way to a staggering £131 million.  

The project was plagued by delays, governance issues and widespread user resistance. Plus, the council’s inability to file auditable accounts or detect fraud, combined with crippling manual workarounds costing £61,300 per week, turned this project into one of the "poorest ERP deployments" in government history. 

What can we learn from it? 

1. Scoping and budgeting: The council severely underestimated the complexity of replacing a 20-year-old system. ERP projects often require contingency budgets and clear risk assessments to avoid spiraling costs. 
2. Governance and leadership: A lack of strong governance and leadership led to delays, miscommunication and a loss of trust between stakeholders. Clear accountability and structured decision-making are non-negotiable for such projects. 
3. Over-customisation pitfalls: The council’s extensive system customisations made the ERP inefficient and costly to maintain. Over-customising ERPs to match outdated processes often causes more harm than good. Adapting business processes to fit standard ERP configurations can save time and money. 
4. Data quality: Faulty data required costly manual fixes post-launch. Data cleansing and validation before migration are critical to avoid downstream errors and inefficiencies. 
5. Post-implementation: The lack of proper support post-launch left users struggling with the system. Continuous training, feedback loops, and iterative updates are crucial to ERP success. 

The Gloucestershire County Council’s SAP S/4HANA Migration 

Gloucestershire County Council’s SAP S/4HANA migration was supposed to be a straightforward move to the cloud through SAP’s RISE program. With a budget of £7.3 million and ambitious timelines, it sounded almost too good to be true. And, as it turns out, it was. By mid-2024, the council had missed three go-live deadlines - December 2023, March 2024, and April 6, 2024 - and costs had ballooned to £16.05 million. The project, now extended to March 2025, went from being a technical upgrade to a full-blown system overhaul. 

The delays meant sticking with their legacy SAP ECC system a little longer, complete with its flaws, including control weaknesses like segregation of duties issues. Add to this the need to renegotiate with their implementation partner and secure an extra £8.75 million, and you’ve got a cautionary tale for local authorities everywhere. 

What can we learn from it? 

1. Don’t underestimate complexity: What starts as a “simple migration” can quickly escalate into a full system rebuild. Always scope your project realistically. 
2. Fix the Foundation First: If you’re stuck with legacy systems during delays, ensure they’re robust enough to carry you through. Ignoring vulnerabilities like poor controls will only make matters worse. 
3. Communicate clearly: Whether it’s stakeholders, partners, or your project team, transparency is of the essence when scope or timelines shift. No one likes surprises when millions are on the line. 
4. Choose partners wisely: Strong relationships with implementation partners can make or break your project. Regular evaluations and open dialogue ensure everyone’s rowing in the same direction. 

Asda’s SAP S/4HANA migration 

Asda’s separation from Walmart marked the start of an ambitious overhaul, including a migration from Walmart’s legacy SAP system to SAP S/4HANA. However, what was intended to be a fresh start soon turned into a logistical headache. A multi-million-pound discrepancy emerged between Asda’s distribution system and its shiny new SAP ERP platform, throwing operations into chaos and raising eyebrows across the board. 

To make matters even more complex, Asda also implemented a warehouse management software simultaneously - a bold move, but one that further compounded the challenges. Unsurprisingly, timelines overran, and the transition became a daunting juggling act for the retailer. 

What can we learn from it? 

1. One system at a time: Implementing multiple systems simultaneously increases complexity and risk. Prioritise sequential rollouts to ensure smoother transitions. 
2. Audit data early and often: Discrepancies in financial data are a risk to trust, operations and compliance. Rigorous data reconciliation should be built into your migration plan. 
3. Allocate extra time for separation projects Separating IT systems post-divestiture comes with its own set of challenges, from disentangling legacy systems to building new ones. Padding your timelines is essential. 
4. Cross-System Compatibility is Key Ensure that all systems - ERP, warehouse management and beyond - are aligned. Misalignment leads to inefficiencies, errors, and potentially costly rework. 

As we move into 2025, don’t let your ERP implementation be yet another failed attempt lost in the sea of forgotten software projects. If you want to make your ERP a success, tell a compelling story. Get your teams involved, celebrate the wins and remember, it’s about the journey, not just the destination. 

And if you want a little help getting there, tts performance suite is a brilliant companion for keeping your team on track. With personalised support, in-app guidance and real-time analytics, you’ll have a much smoother road ahead. Plus, you’ll have a story to tell at the end.