So when you implement an ERP system, what do you expect from it? To improve your business performance? To make your employees’ jobs easier? During our research, we have found that, besides business or process improvements, some companies implement ERP at the request of their customers or in hopes of cutting redundant labor costs. However, as is the case with many tings in life, things don’t always go as planned.
An ERP implementation is accompanied by enormous risks to the organization. Risks can vary based on different phases of the ERP life cycle. It is important to be fully aware that an ERP system doesn’t simply mean an IT project.
Many times, when the ERP project is over, you find:
- You didn’t get what you expected from the ERP system
- Employees resisted the new system
- There were no operational improvements
- There were no significant costs saving
- The new ERP system doesn’t align with your business processes.
I can go on and on about a variety of risks which might impact your business, but I think you get the idea with the sample listing.
Besides the risks associated with an ERP implementation, you might also wonder whether your ERP scope meets your current needs? Do you need to switch to a different deployment or a different system so as to lower your operating costs? No doubt at some point you realize that you need a system and process audit on your existing ERP software package.
By participating in Panorama’s 2010 ERP Benchmark Survey, you will have the opportunity to be selected for a complimentary, two-week Enterprise Systems & Processes Audit Program. We will provide a full review of your current ERP system’s deliverables and processes, summarize lessons learned, and advise you on how to make continuous project improvements.
Just spend 10 minutes to take the survey and you may very possibly get help to improve your enterprise system!
Blog entry written by Haoyan Sun, Research Analyst at Panorama Consulting Group.