ERP Benefits: Myth or Reality
Many industry leaders have believed on the evasive nature of ERP benefits. But how real is the issue of ERP benefits realization? To find out, it helps to look into some key statistics from our ongoing ERP benchmark study. The study, which focuses on companies across the globe that have implemented or are in the process of implementing various ERP packages, reveals some interesting points:
A D V E R T I S E M E N T
- 30% of those surveyed did not realize any sort of staff reductions after go-live
- 18% did not measure benefits after go-live
- 28% had some type of problem or operational stoppage after go-live
Surprisingly, only 18% of companies did not measure post-go-live benefits (in other words, 82% did indeed measure). Besides almost 100% of the companies that have implemented ERP, does not measure post-implementation benefits.
Second, the fact that 28% experienced stoppages seems somewhat alarming. It does highlight that at least 1 in 4 companies have operational problems and/or stoppages because of the disruptions caused by ERP.
So what does this all mean? First, the results show that ERP benefits are by no means guaranteed. Second, the risk of ERP disrupting an organization's core operations is a significant business risk. These factors are clearly areas that will affect the ROI of the investment in ERP and should be carefully managed as part of an overall ERP Benefits Realization plan.