May 15, 2013
We all know that ERP implementations can be very challenging and are likely to cost more than expected, take longer than expected, or fail to deliver expected business benefits. In addition, we know that business process and organizational change management are some of the more difficult aspects of an ERP implementation. We’ve heard the anecdotal stories and examples through our experience, but data supporting these hypotheses is few and far between.
In the latest installment of our 2013 ERP Report released today, we reveal some interesting data as it relates to the business process and organizational change management components of ERP implementations. For example, of the nearly 200 organizations that participated in the study, 65% said that the business process and organizational change components of their implementations were either difficult or very difficult, while only 45% said the same of the technical aspects of their implementations. Given this delta, we now have a quantitative understanding of just how difficult these “softer” parts of an implementation can be, especially when compared to the relatively “easy” aspects of technical configuration and implementation of ERP software.
In addition to measuring the magnitude of difficulty that most organizations face, our new ERP business process and organizational change management report highlights a number of additional interesting points. For example:
A majority of organizations let processes drive the software rather than letting ERP “best practices” drive the business processes. We’ve preached this for quite some time, but it is interesting to see data that supports our view that a company needs to define and reengineer their business processes first, rather than prescribing to the ERP vendors’ view that their software best practices will dictate how you run your business. Although it’s a fairly even mix, slightly more companies take a more process-driven approach to their ERP implementations rather than letting the software drive their business. In addition, our experience and research suggests that not only are slightly more companies taking this approach, but the companies that do are more likely to succeed in their implementations.
To continue reading, click here.