When your ERP Implementation falls in shambles! What has gone wrong?
Eleven percent (11 %) of ERP Implementation projects can land your entire organization in jeopardy.
Why do some ERP projects go over budget or fail to deliver in time?
Recent research by the University of Oxford shows that 32% of ERP implementation projects cost much more than planned or get extended over time, while 11% of such projects can even put the whole organization in jeopardy.
Are ERP Implementation hurdles inevitable? Can One Defy the Odds?
Luckily, it’s not bad news all the way. The companies that know how to defy these odds are the ones able to align the project scope and requirements with actual business value.
As Information Technology (IT) systems become an important competitive element in many industries, ERP projects are getting larger, touching more parts of the organization, and posing a risk to the company should something go wrong. Unfortunately, the truth is, things often do go wrong.
Research by the University of Oxford further suggests that 16% of ERP projects, massively blow their budgets. On average, these ERP projects run 45 % over budget and 22% over time, while delivering 56% less value than expected. Quite disappointing, isn’t it…
The researchers also found that the longer an ERP project is scheduled to last, the more likely it is that it will run over time and budget, with every additional year spent on the project drastically increasing cost overruns.
It’s no fun having to spend way more than anticipated right?
With the stats on the table, how does a company ensure a successful ERP project implementation; that is in scope, in the budget, in time? How is this attainable without losing your organization’s enthusiasm and much-needed peace of mind?