Unfortunately, selecting and implementing ERP systems usually fails to satisfy buyer expectations. The following is a sampling of some of the causes of dissatisfaction identified by leading independent research firms:
- A three year study of 1,300 new ERP system projects performed by Panorama Consulting in 2008 revealed major buyer remorse due to buyer expectations not being met, as follows:
- 93% of new projects take longer to implement than expected
- 65% of new projects cost more than expected
- 79% of new projects fail to deliver at least 50% of the business benefits that were expected
- CBP Research's 2012 study revealed that, "Only 10% of new ERP system projects came in on time and on budget and that the average cost overrun was 178%." Even worse, "35% of new ERP system projects got cancelled."
There were numerous reasons identified for this widespread failure, including amongst others:
- Inadequate definition of requirements (46.5%)
- Unrealistic expectations (30.5%)
- Miscalculation of time and effort (27.7%)
Thankfully, there are steps you can take to assure that your investment in a new ERP system will be sound and will generate the expected Return on Investment on your hard-earned dollars:
- CBP Research says, "The success of your ERP project is determined by the amount of preparation that is undertaken before the software is even shortlisted."
- Ziff Davis says, "Above all ERP is first and foremost a business initiative, not an IT project or a software package. Your ERP package is going to be with you a long time so defining why you're doing it and what you expect to get from it are critically important first steps."