Scope Overruns and Suboptimal Benefit Realization Continue to Plague ERP Implementations Yet Organizations Report High Levels of Satisfaction With ERP Software Choices
Although organizations continue to struggle with enterprise resource planning (ERP) implementation cost estimates, duration planning and benefits realization, a strong majority report satisfaction with their company’s choice of ERP software, according to the 2013 ERP Report issued today by Panorama Consulting Solutions, an independent ERP consulting firm in Denver. Fifty-three-percent of ERP implementations exceeded their anticipated budget, 61-percent exceeded their anticipated timeline and the majority (60-percent) received 50-percent or less of the benefits they expected. Despite these results, a full 86-percent of respondents are satisfied with the system itself and 60-percent indicate their ERP project was a “success.” Nearly seven out of ten respondents (69-percent) also indicate at least some level of satisfaction with their chosen ERP vendor.
“The leadership of most any organization implementing ERP software is sophisticated, savvy and aware of both the complexities of an ERP implementation and the benefits it should bring,” said Eric Kimberling, managing partner of Panorama Consulting Solutions. “But the delta between actual ERP implementation results and the self-reported satisfaction levels indicates that companies are setting expectations of the business benefits they should achieve from an ERP system far too low and likely neither developing the performance measurement indicators they need to accurately determine ROI nor sharing those indicators with their employees.”
Of important consideration is that the average duration of an ERP implementation has increased to 17.8 months, the highest level reported since 2009. More than one-quarter of respondents (27-percent) also indicated that their organizations have not recouped the costs of their ERP software implementation.
“ERP project fatigue can affect even the strongest teams,” said Kimberling. “When durations stretch and scope increases, it can be tempting to stop working towards goals established in the beginning of the initiative or to change the definition of success as ‘getting the system up and running.’ Independent third-party consultants can provide invaluable assistance by properly planning the initiative, conducting audits and measuring results back to the business case to ensure that the ERP system provides maximized returns.”
To offer further analysis of the study results, Kimberling will present a free webinar on Thursday, February 21 at 12 p.m. EST. Registration is open at //www.panorama-consulting.com/resource-center/erp-webinars/.
About Panorama Consulting Solutions’ 2012 ERP Report
Data for the 2013 ERP Report was collected by Panorama Consulting Solutions via online polling on its website. Information was collected from September 2012 to January 2013. The 172 participants represent organizations that have worked on ERP initiatives within the last year. The full report can be accessed at: //www.panorama-consulting.com/resource-center/2013-erp-report/.
About Panorama Consulting Solutions
Headquartered in Denver, Panorama Consulting Solutions is an IT consulting firm specializing in the enterprise resource planning (ERP) market for mid- to large-sized organizations around the world. Independent of affiliation, Panorama facilitates the evaluation and selection of ERP software, manages ERP implementation, and expedites all related organizational change to ensure that each of its clients realize the full business benefits of their ERP systems. Panorama maintains a global presence with current and planned offices in Chicago, New York, Washington, D.C., San Francisco, London, Shanghai and Dubai.