Enterprise resource planning (ERP) implementations are not a one-and-done process. Organizations need to have the right software and vendor in place to avoid any complications associated with the solutions, or they can experience significant delays, wasted resources and expanding budgets.
A recent Panorama Consulting survey found that only 35 percent of organizations' ERP implementation efforts were finished within budget. Another 34 percent indicated that the cost of their deployments surpassed initial forecasts by at least 26 percent, CFO reported. What were the main causes behind these startling findings? A quarter of respondents said their projects became larger in scope, while 17 percent cited unforeseen challenges.
The costs of ERP solutions are not the only potential shortcomings of these tools. The survey found that nearly 50 percent of participants said their systems delivered less than half of the projected functions, according to the news source.
"Organizations looking to shave costs and time typically (and regrettably) nix the business case and other key measurement activities in an effort to get the system installed quickly and cheaply," Panorama Consulting said, CFO reported.
These issues with ERP are why businesses cannot approach any facet of the software without putting in serious effort to choose the best platform and vendor. Infor solutions are ideal for companies considering either on-site deployments or those hosted in the cloud.
ERP challenges also impacting high-tech industry
A recent survey conducted by an ERP vendor found that nearly half of high-tech manufacturers' biggest challenge for creating a successful customer experience with ERP is a lack of back-office and front-office integration.
Pierfrancesco Manenti, head of the IDC Manufacturing Insights research practice, said high-tech manufacturers are struggling to maintain pace with the competition and the changing market landscape.
"More frugal consumer behaviors in developed countries and demand from unstable emerging economies are pushing high-tech manufacturers to launch initiatives aimed at achieving superior customer loyalty through technology innovation," Manenti suggested.
Though companies are undoubtedly struggling to maximize the use of ERP tools, there may be a solution on the horizon. The survey indicated that flexible ERP systems that allow high-tech manufacturers to leverage timely data and empower collaboration efforts will be popular among these businesses during the next three years as they look to address potential shortcomings.
ERP software is a valuable option for supporting mission-critical tasks. However, planning is necessary if any business, regardless of size and industry, is to use such solutions in the long run.