ERP implementations in the banking sector

In today’s fast-paced banking environment, a robust ERP implementation can be a game-changer. However, without a proper set-up, these projects are often plagued by common pitfalls such as budget overruns, delayed timelines, and unmet expectations. This report offers valuable insights into effectively navigating the challenges of ERP implementation projects. We highlight the complexities involved and emphasise the critical importance of a meticulous, well-structured methodology.

Pitfalls and challenges

Based on our experience, we identify three key areas where common pitfalls occur in ERP transformation projects.

The first is rushing the start. When funding is secured and contracts are signed, the temptation to start developing the solution immediately is strong. However, common pitfalls include a lack of clear success criteria, underestimating efforts, and starting without management alignment – all of which can lead to project derailment later.

The second pitfall is aiming for an unfit target. The target should be well thought out, realistic, and a natural step forward. Finding the right balance is complex: adapting the new system to existing processes often leads to poor outcomes or difficult customisations, while overly ambitious targets for harmonising across units can extend timelines and induce fatigue.

The third and final pitfall is underinvesting in project organisation. Effective project organisations must balance business and functional expertise, system integrator deliveries, IT infrastructure, operations, and security services, while ensuring timely decisions from management. Competency gaps in these areas can lead to costly delays and rework. Additionally, proper stakeholder management is often overlooked, resulting in misalignment and a lack of support. A successful project requires clear communication, active engagement, and robust governance.

To overcome the common pitfalls and challenges in ERP transformations, it is essential to adopt a comprehensive approach that goes beyond traditional project management. Drawing from our experience, we have identified key strategies that decision-makers in banks often underestimate and underprioritise.