Organizational Issues Number One Reason for Extended Durations
Organizations that do not allocate enough of their project budget to organizational change management are more likely to face organizational issues that lead to extended durations, according to the 2014 ERP Report issued today by Panorama Consulting Solutions, the world’s leading independent ERP consulting firm.
Every year, the main challenge organizations face is extended implementation durations (73-percent). This year, the most common cause of extended durations noted by respondents was “organizational issues (14-percent).”
The report also highlighted a decrease in benefits realization. The percentage of respondents realizing less than half of anticipated benefits (66-percent) has slightly increased since last year, where 60-percent of respondents received less than half of the benefits they expected. Additionally, the data revealed that over half of organizations (51-percent) experienced a material operational disruption at “go-live,” such as not being able to ship product or close the books. Sixty-percent of these respondents experienced a disruption that lasted one month or longer.
“Now, more than ever, our findings are emphasizing the importance of organizational change and its impact on implementation duration,” said Eric Kimberling, managing partner of Panorama Consulting Solutions. “Successful organizations know that the amount of time and money they invest in training, communication and risk mitigation directly affects benefits realization and overall project results.”
Of important consideration is that the number of respondents who employed the services of an ERP consulting firm has increased since last year (from 23- to 83-percent). However, 33-percent of respondents indicated that they were “unsatisfied” or “very unsatisfied” with the implementation service provided by the third-party assisting them.
“The ideal consulting firm is one that can come alongside your organizational and ensure that every dollar spent on your ERP project contributes to your organizational goals and objectives,” said Kimberling. “While many ERP consultants claim to understand organizational change management, few have a strong and proven methodology that is designed to impact every stakeholder in your organization.”
To offer further analysis of the study results, register for Panorama’s upcoming webinar on March 20, hosted by Eric Kimberling. Register here: //www.panorama-consulting.com/resource-center/erp-webinars/.
About Panorama Consulting Solutions’ 2014 ERP Report
Data for the 2014 ERP Report was collected by Panorama Consulting Solutions via online polling on its website. Information was collected from January 2013 to February 2014. The 192 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/2014-erp-report/.
About Panorama Consulting Solutions
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 offices in Denver, Chicago, Boston, San Francisco, Lima and Dubai.