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What's holding up your ERP project?

by Sarah Cenedella

March 18, 2010

I came across an interesting article today from PCWorld Business Center about the (lack of) satistfaction companies have with their ERP implementations, according to a study by Panorama Consulting Group. This study surveyed 1,600 organizations on the satisfaction they have with their ERP package.

Note that Panorama's report breaks down ERP offerings into three tiers, with large vendors like SAP, Oracle and Microsoft in Tier I; companies such as Lawson, Infor and Sage in Tier II; and smaller players including Compiere, NetSuite and Syspro in Tier III. Here are just a few of the findings from that study:

- More than 35 percent of respondents said their ERP implementation projects took longer than expected; just 21.5 percent reported shorter-than-anticipated project times. Forty-three percent said the projects were completed on schedule.

- Thirty percent of Tier I projects had time overruns, compared to 18 percent for Tier II and 5 percent for Tier III.

- Fifty-one percent of projects overall ended up going over budget, with 40 percent meeting expected costs. Only 8.6 percent came in at a lower price tag than planned.

- Fifty-three percent of Tier I implementations had excess costs, compared to 33 percent for Tier II and 59 percent for Tier III.

Do these findings reflect your own implementation project? If not, what do you attribute to your success? Post your comments here.

You can read the article here and access the full report from Panorama here.

You can also read an article from Panaorama about why ERP implementations fail here.

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