A decade after a rash of high profile stories about disastrous ERP implementations, including the legendary Hershey debacle, ERP implementation is still a problem. A recent study released by Panorama Consulting Group reveals that "More than 35 per cent of respondents overall said their projects took longer than expected; just 21.5 per cent reported shorter-than-anticipated project times. Forty-three per cent said the projects were completed on schedule.
"Thirty percent of Tier I (the big players like SAP and Oracle) projects had time overruns, compared to 18 per cent for Tier II and 5 per cent for Tier III.
"51.4 per cent of projects overall ended up going over budget, with 40 per cent meeting expected costs. Only 8.6 percent came in at a lower price tag than planned."
These being ERP projects, we're talking big numbers in many cases.
One strategy that has gained some traction in the past few years has been the use of SAAS solutions. They effectively avoid the new for full scale internal implementation. Some of the same problems will remain, such a need to retrain staff, but without a complete implementation to worry about, more time can be devoted to these sensitive areas. A report on the Panorama Study can be found on IT World.
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