The Enterprise Resource Planning (ERP) project is perhaps the single most critical initiative any B2B organization undertakes, paving the way for efficiency, growth, and unified data. It wouldn’t be too far-fetched to say it is the company’s core nervous system.

Yet, despite billions invested annually, the failure rate for ERP implementations does not seem to plummet. Depending on the scale and complexity, studies consistently show that anywhere from 50% to 75% of ERP projects fail to meet their original objectives, suffer massive scope creep, or run significantly over budget and schedule.

Now coming to the pertinent question: Why do these high-stakes projects crash?

The problem often isn’t the software itself; modern platforms like SAP S/4HANA are robust. The failure lies in what happens before the implementation begins: a flawed or incomplete understanding of the current business reality. Too many companies skip or rush the crucial ERP assessment phase, thus weakening their foundation in the long run. 

The traditional discovery method, relying on interviews, workshops, and manual flowcharts, is slow, subjective, and prone to political influence.

There is a better way. The integration of proper ERP strategy with modern Process Mining technology offers the definitive solution to these systemic failures.

1. The Myth of the “As-Is” Process

A successful ERP project requires two things: a perfect understanding of your current processes (As-Is) and a clear vision for your future state (To-Be). Most companies fail the first test.

In traditional discovery, the consulting team interviews department heads, who describe how the process should work or how it is documented in a dusty policy manual. The reality on the ground, be it “shadow processes,” workarounds, or accidental delays, is often veiled.

Why Traditional Discovery Fails:

• Subjectivity: People report the ideal process, not their messy reality.
• Incomplete Data: Interviews only capture anecdotal evidence.
• Hidden Deviations: The 20% of cases that generate 80% of the cost are never uncovered.

A significant finding suggests that manual discovery workshops typically only uncover 30% to 40% of the actual process variations happening within an organization’s systems. If you’re designing a new system based on less than half the truth, you’re only inviting failure.

2. Process Mining: Uncovering the Operational Truth

Process mining fundamentally changes the ERP implementation game. It is a technology that uses event logs directly from your existing operational systems (like legacy ERP, CRM, and MES) to reconstruct the true, objective flow of every business transaction.

Think of it as an X-ray of your business:

• Objective Mapping: It automatically maps every variation of the Procure-to-Pay, Order-to-Cash, and Record-to-Report processes exactly as they run today.
• Variation Identification: It shows precisely where rework occurs, where tasks are skipped, and which steps cause the most delay (e.g., waiting time between ‘Goods Receipt’ and ‘Invoice Verification’).
• Root Cause Analysis: It doesn’t just show where the bottleneck is; it helps determine why it exists (e.g., 90% of delays in purchase order approval are caused by users running old systems or requiring manual approval from a specific team).

By providing this data-driven, objective Business process management foundation, Process Mining eliminates the guesswork that derails projects.

If you’re looking to integrate leading-edge Process Mining technology directly into your ERP strategy, Avally is your best bet. 

3. The Triple Threat: Scope Creep, Cost Overruns, and Adoption Issues

The systemic failure to understand the As-Is state creates a cascade of problems that lead to project failure:

A. Scope Creep and Customization

When the implementation team finally sees the messy reality on the shop floor, they realize the new ERP system, designed based on the ideal, doesn’t handle the necessary workarounds. This leads to emergency custom-coding. Every line of custom code adds cost, complexity, maintenance risk, and slows down future upgrades.

Customization, driven by poor initial discovery, is cited as a major contributor to over 60% of ERP budget overruns.

B. Poor User Adoption

If the new system makes the users’ jobs harder, they will reject it. Low user adoption means the multi-million-dollar system fails to deliver promised ROI. Process Mining helps avoid this by showing which process variants are actually efficient and ensuring the To-Be state supports the best way people already work, not an entirely unfamiliar, generic template.

C. Missed ROI Targets

The core purpose of an ERP system is to drive efficiencies (e.g., reducing days sales outstanding or improving inventory turnover). If the project is focused solely on “go-live” and not on business process management optimization, those ROI targets are missed.

4. How to Avoid Failure: Prioritize Discovery and Strategy

To succeed in your next ERP project, B2B leaders must embed a high-quality ERP assessment and Process Mining into the foundational strategy:

1. Mandate Data-Driven Discovery: Insist that the design of the new system (To-Be) must be validated against the hard data of the existing system (As-Is), as revealed by process mining tools.
2. Focus on Standardization: Use process mining to identify non-standard process variations. Instead of custom-coding, the strategy should focus on migrating employees to the standard, most efficient process variant supported by the new ERP.
3. Measure Value, Not Milestones: Shift the focus from technical go-live to measurable business value. Define KPIs (e.g., reduction in rework, faster cycle times) and use Process Mining to continuously track them during the project and post-go-live.

A well-executed ERP project is a transformative journey. By leveraging objective data through process mining, B2B organizations move beyond flawed assumptions and subjective consensus, ensuring the massive investment in ERP implementation delivers true, predictable business value.

Don’t let your transformation become another statistic. Take control of your operational data before you design your future system. Contact Avally Co., Ltd. today to learn how our data-driven ERP strategy and Process Mining services can de-risk your next project and guarantee measurable ROI.