Many industry leaders, including this one, have published thoughts regarding the evasive nature of ERP benefits. But how real is the issue of ERP benefits realization? To find out, it helps to look into some key statistics from our ongoing ERP benchmark study. The study, which focuses on companies across the globe that have implemented or are in the process of implementing various ERP packages, reveals some interesting points.
Survey Results of ERP Benefits
- 30% of those surveyed did not realize any sort of staff reductions after go-live
- 18% did not measure benefits after go-live
- 28% had some type of problem or operational stoppage after go-live
These numbers surprise me in a number of ways. First, I am surprised that only 18% of companies did not measure post-go-live benefits (in other words, 82% did indeed measure benefits). In my experience, this number is closer to 100% of companies I have worked with that have not measured post-implementation benefits. Of course, my sample could be skewed toward companies that do not follow best-practices and therefore need our consulting support.
Second, the fact that 28% experienced stoppages seems somewhat alarming. Although I expected this number to be higher as well, is does highlight that at least 1 in 4 companies have operational problems and/or stoppages because of the disruptions caused by ERP.
So what does this all mean? First, the results show that ERP benefits are by no means guaranteed. Second, the risk of ERP disrupting an organization’s core operations is a significant business risk. These factors are clearly areas that will affect the ROI of the investment in ERP and should be carefully managed as part of an overall ERP Benefits Realization plan.