Post-Implementation Results
Many industry leaders, including Panorama Consulting Group, have published thoughts regarding the evasive nature of ERP benefits. Our 2008 ERP Report underscores this hypothesis. As Figure F outlines, only one out of five companies (21%) realize at least half of the business benefits they expected from their ERP systems. In addition, over half (57%) realized major operational disruptions after go-live, including the inability to ship products to customers in some cases. One a positive note, two out of three (70%) of the participants in the study were able to realize some type of staff optimization as a result of their investment in ERP.
Clearly, despite the large investment most companies make in ERP software, benefits are by no means guaranteed. In addition, the risk of ERP implementation causing a disruption to the organization’s core operations is a significant risk. These factors are clearly areas that will affect the ROI of the ERP investment and should be carefully managed as part of an overall ERP benefits realization plan.
