LYAssociates

ERP System Selection Assistance

Why Engage a Consultant?

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:

  1. 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

  2. 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."

 
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