We’ll do a quick recap of the key conclusions in Panorama Consulting’s survey of large firms that implemented ERP systems. Even though their client base is large companies, we’ve noted frequently how closely the lessons and principles of those larger installations apply to our own clients in the Small to Midsize Business (SMB) market space.
We noted in our prior post that while some projects came in on-budget (or in a few cases even, under budget), many were significantly over. Panorama had a few key conclusions about the comparison between planned vs. actual costs.
Among their key findings:
- 29% of companies had not yet recouped their costs. This goes back to business planning at stage one, we believe. You can’t identify how much or when you’ll recoup costs if you don’t identify them at the beginning of the project.
- The other 71% had recouped their costs. Fully 50% had recouped their implementation costs within just three years. In fact, 40% had done it in two!
- On average, ERP projects took about 16 months to complete. (This is fuzzy however, because much depends on how you define the project.) 38% were completed on schedule… 54% went long.
- The majority of companies deployed on-premise solutions (about 60%)
- About 40% of companies used software add-ons. Remember, this is in large and expensive deployments, where 3rd party add-ins are less prevalent. In the SMB market space, the vast majority of companies end up needing to use one or more add-ins or third party enhancements.
- Fully 90% of companies employed some level (from light to extensive) of customizations to their ERP software.
- Top modules implemented were: Financials; Sales distribution; Order processing; Materials management; and Human Resources. It’s all about gaining competitive advantage by planning for, and then deploying, the right software functionality that will most enhance your company’s competitive advantage.
In our next and final post on Panorama Consulting’s survey of ERP deployments, we’ll look at their final conclusions.