Last week we shared the findings of Panorama Consulting’s 2016 ERP Report in a post here.
Today we’ll take a quick second look at some of the trends they observed and conclusions they reported in a separate email accompanying their report which they shared recently with us. We thought some were illuminating, and as ERP implementers, wanted to share them with our audience as well. Here goes…
Their key data points looked like this:
|YEAR||COST||% COST OVER RUNS||DURATION||% DURATION OVERRUNS||% RECEIVING 50% OR LESS BENEFITS|
And then, quoting Panorama directly, we thought their highlights were revealing…
- On average, organizations spend 6.5-percent of their annual revenue on their ERP project. This is an increase since last year where organizations spent 5.9-percent of their annual revenue on their ERP project.
- Consistent with previous years, 56-percent of respondents chose to implement on-premise ERP software.
- Since last year, there has been a significant increase in the use of cloud ERP, from 11- to 27-percent. (But as noted last week, many of these purchased the software themselves and merely had it hosted by a third party provider – not a true ‘cloud’ installation.)
- Since last year, the use of ERP consultants dropped from 77-percent to 68-percent.
- In comparison to last year, there has been an increase in the percentage of organizations engaging consultants for planning and implementation, and a decrease in the percentage of organizations engaging consultants to assist in software selection.
- Only 20-percent of respondents reported an intense focus on organizational change management.
Panorama’s 2016 full report is available here.