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ERP Implementation Statistics

The most recent statistics show that ERP implementations:
  • 61% Take longer than expected
  • 74% Cost more than expected
  • 52% of implementations fail to deliver more than 50% of the expected benefits, and as a result
  • 59% of the organisations that have implemented ERP are unhappy with the results. 

Why so bad?

These statistics are shocking unless one puts them in context. Many implementations are triggered by major upheavals such as a new CEO, mergers and acquisitions, market crisis, layoffs, etc. When reading about implementations one is given the impression that they are always well planned by well managed companies who merely want to update their systems and become more efficient, or 'responsive' when in fact they are often 'forced' as part of a survival plan. 

Multi Tasking

One of the major problems in any ERP implementation is that it crosses so many departmental boundary's and requires the input and efforts of many of their resources to implement a number of modules/processes in areas where they are not traditionally involved. Combine this multi-tasking with multiple lines of authority and you have a recipe for disaster. So. How do you overcome this? My suggestion is to investigate the use of Critical Chain Project Management to assist in maintaining focus on what is important...

So. What is needed? 

A realistic assessment of the results that are required and a realistic grasp of what must be done. Assess the effort and commitment required, and do not focus so strongly on problems that there is a risk of excluding tasks that are necessary to establish strong foundations. And above all else, as in any project, management of the changes.

Insanity!

About two thirds of ERP implementation projects fail to achieve the expected benefits. Most of these projects are managed using a traditional project management approach and tools.

Repeatedly doing the same thing and expecting different results can be regarded as a good definition of insanity!

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