The Silent Killer: How a $2.89M SAP System Destroyed a 42-Year Success Story
💀 The Perfect Crime: 42 Years of Success... 18 Months of Destruction
⚡ Eyewitness Account: Carpetright Financial Manager
"We were a successful company for 42 years. We survived recessions, COVID, everything..."
"But we couldn't survive implementing a new ERP system."
September 2025: Carpetright Netherlands declares bankruptcy
Official reason: "Startup problems with the implementation of a new software system"
The bitter truth:
The system that was supposed to save the company... killed it instead.
The Victim: An Innocent Company
Carpetright isn't just another statistic. This was a real company:
- ✅ 42 years in business
- ✅ Survived 4 economic recessions
- ✅ Weathered the COVID-19 crisis
- ✅ Loyal customers and solid reputation
- ✅ Stable revenue and profitable operations
The only problem: An aging management system that needed updating.
The fatal decision: Buy an off-the-shelf global ERP system.
🕵️ Crime Investigation
The central question: How does a 42-year success story die in 18 months?
The shocking answer: Because 75% of ERP projects fail
Even worse: Average actual cost is 189% higher than planned budget
So if your budget is $1 million...
You'll actually pay $2.89 million!
🔍 Crime Scene: Birmingham Council - £144 Million Lost
📋 Case File #2: Birmingham City Council
Victim: Birmingham City Council (UK's second-largest city)
System: Oracle ERP
Planned Budget: £39 million
Actual Cost: £144 million (269% increase)
Duration: 3 years instead of 18 months
Result: Council without effective financial system for over 2 years!
Damning Evidence from Investigation Report:
🚨
Inadequate Project Governance
No effective oversight from senior leadership
⚠️
Poor Design Choices
Attempting to force complex council operations into Oracle's standard template
🔄
Shifting Functionality Requests
Every time they discovered the system didn't work, they requested new modifications
👥
Shortage of In-House Expertise
Complete reliance on external consultants
💀 The Catastrophic Result
Imagine running a city of 1.1 million people...
Without an effective financial system for over 2 years!
This means:
- Unable to track expenses accurately
- Difficulty processing payments
- Unreliable financial reports
- Financial decisions based on incomplete data
The logical question:
If they had built a custom system for £50 million... would it have been better or worse?
💀 The Real Criminal: Forcing Square Pegs into Round Holes
🔍 Identifying the Real Criminal
The criminal is NOT:
- ❌ Off-the-shelf systems (SAP, Oracle, Dynamics are excellent)
- ❌ Consultants (they're doing their job)
- ❌ Technical teams (they implement what's requested)
- ❌ Budget (money isn't the issue)
The real criminal:
Forcing a standard template onto complex reality
Attempting to squeeze unique operations into a system designed for standard processes.
The Lidl Disaster: €500 Million Down the Drain
Germany's discount supermarket giant Lidl provides the most expensive lesson in ERP failure history:
💸
€500M
Total investment in SAP implementation
⏰
7 Years
Duration of failed implementation
🗑️
100%
Project scrapped, returned to legacy systems
The lesson: Even the most successful companies can be destroyed by the wrong ERP approach.
When Off-the-Shelf Works vs. When Custom is Essential
✅
Off-the-Shelf is Perfect
- ✅ Standard accounting firm
- ✅ Basic distribution company
- ✅ Simple e-commerce store
- ✅ General services company
- ✅ Consulting office
🎯
Custom ERP is Essential
- 🎯 Manufacturing with unique processes
- 🎯 Pharmaceutical (complex regulations)
- 🎯 Specialized logistics company
- 🎯 Financial institution (security requirements)
- 🎯 Fast-growing tech company
📊 The Shocking Statistics: Evidence from the Largest Research Institutions
The Real Numbers from Major Research Organizations
The True Cost of Failure
💰 The Real Calculation
According to comprehensive ERP failure study:
- $1M project → costs $2.89M actually (189% increase)
- $10M project → costs $31.5M (215% in manufacturing)
- 65% of the increase due to customizations for usability
- Customization costs can reach 3-4x original budget
The smart question:
If customization costs 3x the budget... why not build custom from the start?
💡 The Transformation: From Failure to Success
Real Success Stories
🏭
Mid-Size Pharma: 200% ROI in 2 Years
After SAP implementation failure (cost $2M), they decided to build custom.
🚚
Logistics Company: From Chaos to Order
Tried 3 off-the-shelf systems, all failed. Built custom system for their unique operations.
The Difference Between Success and Failure
| Factor | ❌ Failed Projects | ✅ Successful Projects |
|---|---|---|
| Decision | Force off-the-shelf onto unique operations | Build system that fits actual operations |
| Customization | Excessive customization (>60%) of off-the-shelf | System designed from start for requirements |
| Cost | 215% over budget | Predictable and calculated cost |
| Flexibility | Limited by off-the-shelf constraints | Complete flexibility for development and expansion |
| Ownership | Ongoing subscription fees + vendor lock-in | Full ownership + lower TCO over 5-10 years |
🎯 The Rescue Plan: How to Decide?
The Five Critical Questions
1️⃣
Are your operations unique?
If your processes are similar to others → off-the-shelf
If your operations are unique and your competitive advantage → custom
2️⃣
What percentage of customization is required?
Less than 20% → off-the-shelf
20-40% → industry-specific system
More than 40% → custom is cheaper and better
3️⃣
What's your growth vision?
Slow, stable growth → off-the-shelf
Fast, changing growth → custom is more flexible
Red Flags: When to Worry
⚠️ Warning Signs
🚨
Consultants say "you need to change your processes" - this means the system isn't suitable
📈
Proposed customization exceeds 40% - this means custom would be cheaper
⏰
Implementation duration exceeds 1 year - this means the project is too complex
💸
Total cost (5 years) exceeds 3x custom system cost - think again
🚀 Ready to Build Custom ERP the Right Way?
After reading these painful stories, you definitely don't want your company to lose millions due to wrong decisions!
✅ We at MTBRMG Help You Build the Right Solution
Our Custom ERP Solutions Services:
🎯 Custom ERP Solutions - System designed 100% for your needs and unique operations → View Details
📊 ERP Consulting - We help you choose between off-the-shelf and custom based on precise analysis → View Details
🔧 SAP Implementation - If you decide SAP is suitable, we implement it correctly → View Details
📞 Contact us now for a free consultation:
WhatsApp: +20 128 880 1917
Email: ask@mtbrmg.com
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