We’re continuing our recap of Panorama Consulting’s annual (2014) ERP Report, highlighting key findings of interest to anyone considering ERP. Our first post was here, and you’ll find access to Panorama’s full report here.
Panorama’s survey was broad (at 192 firms surveyed) and very representative of businesses involved in ERP in one key sense at least: two out of five respondents had completed their ERP implementation, while one in five were in the planning phase and the other two in five were mid-implementation – that’s a good spread of opinions at relevant moments.
Key reasons cited for implementing ERP (each representing 10% to 15% of total respondents) were, in descending order:
- To improve business performance (15%)
- To better integrate systems across multiple locations (14% – and typical of large firms)
- To better serve customers (12%)
- To ensure reporting and/or regulatory compliance (11%)
- To replace an older ERP system (11%)
- To position the company for growth (10%)
We note with a touch of chagrin that 3% cited “because other companies have ERP.” Sigh.
It’s interesting to note that well over 40% of companies are “replacing existing ERP software.” As noted above, 11% cited this as their ‘key’ reason, but it’s clear lots of companies are upgrading systems these days – our own experience confirms this.
Panorama’s survey was broad-based: About half the companies surveyed had between 1 and 100 users (the typical ‘sweet spot’ for our own SMB customers)… and it appears that about half were companies with revenues under $100 million, that same sweet spot. Thus, the conclusions drawn can be fairly extrapolated as being relevant to most companies, including SMBs.
Satisfaction levels for ERP software remain high. About 70% of firms are satisfied (though that’s down a good bit from last year’s report) and over three-fourths would select their chosen software again. However, despite these levels of overall satisfaction, it’s worth noting that only 63% consider their project a “success.” About 25% were either “neutral” or “didn’t know” indicating, Panorama says, “that organizations might not have created a business case, conducted a post-implementation audit or communicated about project results.” 16% indicate that their organization’s ERP project was a failure.
A final note from the report on overall satisfaction levels…
Over half the respondents expressed satisfaction with their overall software functionality, and a similar percent was satisfied with its ability to meet their business needs – remember, not all the respondents were fully implemented yet. But fully one-third were unsatisfied, or worse, with their implementation service provider.
We’ll take a look at who the top ERP vendors were among survey respondents in our next past. Stay tuned…