Top Ten ERP Software Predictions for 2011
It was another volatile and unpredictable year in the ERP software industry in 2010. Just a few highlights from the 2010 ERP market include:
- Waste Management and SAP finally settled their multi-million dollar lawsuit out of court
- Marin County filed a lawsuit against Deloitte as a result of their failed $30M ERP implementation
- Oracle hired Mark Hurd as their new president
- Charles Phillips left Oracle to lead Infor
- ERP vendors started seeing improvements to their top and bottom lines
As we approach the end of the year, it’s worth looking forward to what to expect in 2011. Below are our ten predictions for the enterprise software space in 2011.
Top Ten ERP Predictions for 2011
- Risk management and mitigation. Even though the economy may not be quite as bad as it was at this time last year, companies are still extremely risk adverse. They are not willing to spend millions of dollars on ERP software that are difficult to implement or don’t deliver measurable value. When they do go to implement, executives are going to rely on outside consultants and experts to help them manage and minimize risk.
- Increasing focus on organizational change management. Since risk management is the name of the game for CIOs, executives are finally smartening up and realizing that organizational change management is arguably the single best way to mitigate and manage implementation risk. As recently as 2-3 years ago, before the current recession began, companies viewed org change as an optional and nice-to-have implementation activity – now they are realizing that it is critical.
- Increasing need for ERP business cases, ROI analysis, and benefits realization. In the latter half of 2010, we saw a marked shift to organizations focusing on clearly defining a business case and conducting an ROI analysis to assess the viability of their ERP initiatives. Given the risk aversion of many companies, this trend is likely to continue into 2011. This quantitative focus has been a core part of Panorama’s methodology since its inception, so this is a welcome trend that will ultimately benefit companies.
- ERP lawsuits and canceled ERP projects. Despite companies’ desires to mitigate risk and focus on organizational change, they are still going to be pressured by slim IT budgets in the new year. This is going to create a conflicting pressure to cut costs in the wrong places, which will ultimately increase the rate of ERP failures. In addition, because of the low tolerance for risk, companies will be faster to pull the plug on troubled projects and file ERP lawsuits against their vendors if needed.
- ERP vendors will get their “mojo” back. Up until recent months, most ERP vendors were getting hammered by a mix of increased competition, tight IT budgets, and mediocre financial results. Signs in the latter half of 2010 pointed to increasing IT spending and pent-up demand for enterprise systems, which is likely to continue into 2011. This should give software vendors increased confidence to hold the line on software pricing, invest more in R&D, and provide more product enhancements.
- ERP vendor consolidation. Even though ERP vendors as a whole will be stronger in the coming year compared to years past, they all won’t be so lucky. As we emerge from the recession, the market will diverge into a class of stronger ERP vendors and a class of weaker players. Look for the stronger players to acquire some of the weaker ones, resulting in a wave of consolidation.
- Heavy adoption of Software as a Service (SaaS) models at small and mid-size businesses (SMBs). Assuming SMBs and start-ups lead us out of the economic doldrums as they have in past recessions, they will look to enterprise software to provide their business foundations for growth. However, these bootstrapped start-ups aren’t likely to have the capital funds for heavy up-front costs, so they will likely look more to SaaS ERP and CRM systems.
- Continued buzz around cloud computing. While SaaS ERP systems are still years away from capturing a significant portion of the ERP market among mid-size to large organizations, CIOs will continue to look at other cloud computing options. For example, hosted ERP solutions and outsourced IT infrastructures will likely be on the minds of many CIOs. In addition, although larger companies may not yet be in a position to adopt enterprise-wide SaaS models, they will continue to evaluate targeted SaaS solutions, such as Document Management Systems (DMS), Human Resource Systems (HRM/HCM), Product Lifecycle Management (PLM), and Customer Relationship Management (CRM).
- A good year for CRM software. Most companies have cut their operating and labor costs to the bone throughout the recession. Many are also starting to realize that the only way to make it out of the recession stronger is to fuel top-line growth and sales, and most will do so without hiring too many new sales and customer service reps. For this reason, companies will look to CRM software and social CRM applications to help makes their existing sales and customer service functions more effective and efficient.
- More focus on diagnostics, analytics, and business intelligence. Companies have reduced their margins of error for missteps during the recession, so companies will continue to rely on their ERP systems to help provide operational data to help make better and more informed decisions. Look for diagnostics, analytics, and business intelligence applications to gain momentum in the coming year.
What does this all mean to our clients and other companies considering ERP investments in the coming year? The companies that choose the right ERP software for their organizations, best manage business and organizational risk, implement effectively, and position themselves for benefits realization will be better positioned as they head into the new year. This will require companies to more effectively assess vendor viability during their ERP selection processes and leverage ERP implementation best practices more than they have in the past.
Panorama continues to provide tools, expertise, and resources to those wanting to effectively navigate their ERP system challenges in the new year. Visit our resource center to download industry reports, white papers, benchmark metrics, and other useful information related to ERP selection and implementation best practices.
Happy holidays and here’s to a prosperous and successful 2011!
Editor’s Note:
- Eric’s blog post discussing his 2010 predictions was our most popular blog post in 2010. If you haven’t read his post Top Ten ERP Software Predictions for 2010, you are encouraged to do so.
- Eric, along with the Panorama team, would love to hear your thoughts on the upcoming year. Please comment below and leave your own predictions at how the ERP market will look in 2011.
loading...
What are the Goals of Manufacturing Software Initiatives?
A few weeks ago, one of our blogs focused on the pros and cons for companies choosing to leverage best practices and pre-configured manufacturing software systems. As we pointed out, while a useful starting point, best practices are not always relevant and cannot guarantee that an implementation will be easy or successful.
Best practices can be a very helpful starting point in a majority of cases for non-differentiating business functions such as accounting and purchasing. However, in the case of manufacturing and supply chain management business processes, it is more likely that a company will tend to focus building their unique competitive advantages into the software rather than letting the software drive the business.
So we conducted an online poll to measure how the average company chooses to leverage best practices in the context of a manufacturing software implementation. Do most want to leverage industry best practices? Do they want to build competitive advantages unlike that of their peers, suggesting that pre-configured industry solutions aren’t gong to address them?
The results are interesting. At the time of this posting, none of the respondents indicated that leveraging best practices was the primary driver for their manufacturing software initiative. Just 7% stated that they were looking for operational superiority, while 43% said they were looking for measurable results and a strong return on investment (ROI). A majority, or 53%, said that they were looking to achieve all of the above.
These results suggest that one thing is clear: most companies are not leveraging software simply to leverage best practices. They are also looking for ways to bring measurable value to their business operations and to achieve operational superiority. Much is made of best practices and pre-configurations, which are important, but they are just one component of the value that manufacturing software can bring to an organization.
What do you think? Take our poll below, or view results from other visitors.
Loading ...
loading...
Like Football, An ERP Implementation is A Game of Inches, But Where Is The Goal Line?
I’m a huge fan of professional football (American football, that is). Perhaps the thing that fascinates me most about the sport is how much each play matters, and how within each play, every little thing matters.
If an offensive lineman protecting the quarterback is just one inch too far off his position on just one play, it can be the difference between a touchdown and the quarterback being sacked for a loss. When an offense is moving down the field, one key block that pushes a defender just one inch further downfield can be the difference between keeping the drive alive with a first down or having to punt to the other team. And we’ve all seen many episodes of Sports Center where the receiver makes a spectacular catch in the end zone, only to have one foot just one inch too far over the line. Sixty minutes may seem like a long time to play a game (especially if you don’t like football), but it’s often not enough time to overcome one “mistake of inches” from earlier in the game.
Just as in football, ERP implementations are much the same way. The average deployment takes 18 months from start to finish, which seems like plenty of time to make and overcome a mistake or two. But that is not the case. Every little thing counts, from the way you choose your software to the way you design your system to the way you communicate changes to employees. We’ve seen projects fail because the project team forgot to define that one little critical requirement during the ERP selection process, only to find that the software they chose couldn’t handle the functionality. This creates a domino effect of customization, cost overruns, and ultimate project failure. Had the company just remembered that one little requirement early in the process, that may have made the difference between success and failure.
And just like football, an ERP implementation is a brutal contact sport. Facilitating business changes, managing organizational resistance, controlling project scope creep, and ERP software that doesn’t always fit your exact needs can take it’s toll. By the end of the game, you’re just glad to have survived the whole thing in one piece.
ERP projects may be like football games in many cases, but they are different in one way: football has a clearly defined goal-line and scoring process, while no one has created a universal definition for ERP implementation success. In other words, where is the goal line and when do we declare victory? How do we define go-live? Are we done once the system is up and running? Which business processes do we have to have addressed in the new ERP software before we call it a day? How do we know when the business has fully adopted the software? And how will we know that the business has realized a strong ROI from the investment?
The problem is that most people in your company, including the ones running the project, probably don’t have answers to these and other key questions, which can lead to big problems later on.
This issue is becoming even more pronounced during the current recession. Companies are cutting IT budgets, cutting ERP scope, rushing decision processes, and doing whatever possible to reduce risk. However, these actions don’t necessarily lead to success or put a “W” in the game column. So how do we define victory? And how do we orient ourselves with the playing field enough to understand how big the field is and where the goal lines are?
Below is a video we recently produced that addresses this question head-on. As you will see, winning in the game of ERP implementation requires us to redefine what we mean by “go-live,” or what we mean by winning.
loading...
Break on Through to the Other Side: Moving Beyond ERP “Go-Live” to Competitive Edge and ROI
We are often asked by clients why our estimates for ERP implementation durations differ so much from what they hear from sales reps. While ERP vendors can usually provide anecdotal examples of customers that have implemented ERP software in a very short time span or achieved significant business benefits from their solutions, our independent research suggests that these examples are the exception rather than the norm.
For example, our research of 1,600 ERP implementations across the globe reveals that the average ERP implementation takes 18 months. However, it is more common for software vendors to suggest that this timeframe is in the 6- to 9-month range for most companies. In addition, software vendors tout the advantages and benefits of their software, but our research shows that most organizations fail to achieve 30% of expected business benefits. So why the disconnect between sales messages and the reality of the ERP marketplace?
Part of the problem is sales reps eager to close a sale, which suggests that their motive is to downplay the required investment and risk of purchasing their solution, especially important to CEOs and CIOs in today’s uncertain economic climate. This may be understandable enough, but that doesn’t help a company get a realistic view of what it will take to reach ERP nirvana.
The even bigger problem is that software vendors and their customers do not adequately define or understand what it means to “go live” with an ERP system that delivers measurable business benefits. Instead, they often focus on how fast and/or cheap their solution can be implemented, thereby undermining the potential of the ERP software.
As outlined in the graph below, most companies narrowly define their go-live as the moment the new core, basic system is up and running. This includes leveraging core functionality of the system, pre-configured industry “best practices,” and other features that companies can leverage to get their new ERP systems up and running more quickly than otherwise possible.
Three Phases of ERP Competitive Edge and ROI
However, this is just the first phase of a successful ERP implementation which delivers limited business benefits and competitive advantage. The core system achieved in Phase 1 may get you 30-50% of the potential business benefits (at best) with its pre-configured industry best practices. Most organizations fail to achieve expected business benefits, partially because they rely too heavily on standard “out-of-the-box” functionality that fails to set them apart from competitors. Most companies are not in business to be just like their industry peers and competitors – they are in business to be better, closer to their customers, and ultimately more profitable than their competitors. Merely getting to this first phase of ERP does not accomplish these goals, which explains why 72% of organizations never get past this stage.
Instead, companies need to concentrate on moving the finish line to include two more important phases. Phase 2 involves leveraging more advanced ERP modules, such as advanced forecasting, planning, supply chain management, or mobile workforce management. Even companies that purchase and go-live with these advanced modules during Phase 1 rarely fully leverage the functionality right away, because they haven’t adequately defined their corresponding business processes or sufficiently trained their people to use the improved workflows. In addition, this second phase entails identifying third-party bolt-ons, customizing where appropriate, clarifying reporting, and improving business processes to further integrate the core ERP system into the organization. This stage dramatically increases competitive edge and delivers measurable business results.
The third and final stage is to fine-tune business processes and develop an operational model that relies on superior analysis and ability to execute on more transparent business information and business processes. While most ERP systems provide more functionality, workflows, and reports than companies know what to do with, the most successful companies figure out how to sort through these complexities to focus on what will give them a competitive edge and ERP ROI. Our research shows that only 28% of organizations achieve the second or third phase of ERP competitive edge, and these are often the leaders in their respective industries.
As also noted in the above figure, Phases 2 and 3 begin to shift the focus away from software and its functionality and more toward business process re-engineering and organizational change management. By this point in the process, relatively little of ERP’s success is related to the software itself, but is instead related to how jobs are designed, how processes are defined, and how performance is measured. In addition, the truly successful ERP implementation teams incorporate Phases 2 and 3 into their first phase and focus on these key areas concurrently. On the other hand, other companies focus on Phases II and III only after realizing that the Phase I focus does not deliver the results they expected.
ERP software is a tool and enabler of competitive advantage and ROI. Merely “going live” with the software, however, will not deliver these results. Executives are at times overly concerned about risk and focus too much on getting the system up and running quickly and inexpensively rather than delivering measurable results. Only by following through with the second and third phases of an ERP implementation will your organization achieve the true business benefits and competitive edge that you are looking for. These second and third phases have very little to do with the software itself – it is more about building and leveraging business processes and workflows that allow you to analyze information and execute more effectively. When planning for your ERP implementation, it is important to align expectations accordingly and incorporate these activities into your project plan.
What do you think? Take the poll below to vote on your primary objective for your ERP system, or view other readers’ results.
Loading ...
loading...
Plex Online Launch at Phoenix Logistics Named Best Deployment
Plex Systems, Inc., provider of Plex Online, the No. 1 rated manufacturing ERP software, today announced that its launch of Plex Online at Phoenix Logistics has been named a winner of the 2010 Best Deployment Scenario Award in two categories: Enterprise Management and SaaS Business Application for SMB.
This prestigious award is presented annually by Info Security Products Guide to recognize software solution providers with advanced, groundbreaking solutions that are helping set the bar higher for others in all areas of information technology and security.
Phoenix Logistics replaced 40 stand-alone systems with one fully integrated ERP Software as a Service (SaaS) solution, Plex Online. The company eliminated the cost of printing, handling and storing over 20,000 pages of documents each month, saving more than $53,000 per year. Phoenix Logistics also implemented real-time changes on the shop floor that reduced processing time by 75 percent.
The company achieved ROI within 18 months of its Plex Online deployment. The speedy implementation drove immediate results, enabling Phoenix Logistics to manage an ambitious, internally funded 50 percent growth rate.
“Plex Online brought us paperless, integrated real-time traceability so we could isolate issues with pinpoint precision,” said Ben Sommerville, Phoenix Logistics’ chief operating officer. “Real-time, detailed production data became available to all users almost immediately following the systems launch.”
“Congratulations to Phoenix Logistics for this recognition,” said Plex Systems CEO and President Mark Symonds. “The improvements that Phoenix Logistics has made on its shop floor provide a roadmap for other manufacturers in how to use technology to achieve dramatic efficiencies, growth and cost savings.”
“The most powerful message vendors can ever give to provide their capabilities and continued commitment in solving customers’ needs is through successful deployments,” said Rake Narang, editor-in-chief, Info Security Products Guide. “Plex Online’s successful deployment at Phoenix Logistics is a prime example of how a flexible, fully integrated ERP solution can help manufacturers manage complex business processes simply and efficiently.”
About Plex Systems
Plex Systems, Inc. is the developer of Plex Online, a software as a service (SaaS) solution for the manufacturing enterprise and the only solution to achieve the prestigious Champion ranking in Aberdeen Group’s 2009 ERP in Manufacturing AXIS report. Plex Online offers industry-leading features for virtually every department within a manufacturer, including Manufacturing Execution Systems (MES) and Quality Management Systems (QMS) for the shop floor, Customer Relationship Management (CRM) for sales and marketing, Supply Chain Management (SCM) for procurement, and Enterprise Resource Planning (ERP) for finance and management. Plex Online’s fully integrated model delivers a “shop floor to top floor” view of a manufacturer’s operations, enabling management to run its business at maximum efficiency. Founded in 1995, Plex Systems is headquartered in Auburn Hills, Michigan, with customers around the globe.
loading...
ERP Software Selection Testimonial and Success Story: Lessons From the Front Lines
There’s no better way to learn how to manage an ERP selection and ERP implementation process than by hearing it from someone who has just been through the process. Hearing it from a consultant or software vendor is one thing, but hearing it from an actual implementing organization can often times make it seem more real.
One of our recent ERP podcasts featured an interview with a client of ours, the President of a mid-size field service provider that recently selected and implemented new ERP software for their organization. There were several helpful lessons from that interview. For example, the client highlighted some of this lessons and tips from his company’s software selection process:
- The importance of an independent ERP consulting firm. One of their difficulties was finding a consulting firm that was truly independent and didn’t represent one or more specific software vendors. They looked long and hard before hiring Panorama Consulting to help them select and implement their chosen software.
- Define business processes and requirements. One of the key aspects of their evaluation was to document the tribal knowledge throughout the organization. They defined new, more clearly defined and standardized business processes that would take their company to the next level. In addition, they used the evaluation as an opportunity to define their business requirements and priorities.
- Focus on the important stuff. They understood that no ERP system would address each and every business requirement, but they knew which business needs they absolutely had to address.
- Vendor negotiations are critical. They leveraged Panorama’s experienced team to act as the bad guy and establish their position with vendor, while at the same time protecting them from potential strains with the vendor as a result of the negotiations.
- Address major challenges. One of their biggest challenges was getting everyone across the company on same page to define what was critical to the company as a whole. In the past, different departments and functions had focused on what was important to their area rather than to the entire company, so ERP was a challenge and opportunity to change that mindset.
- Key pieces of advice. His comment to those about to select new ERP software is to set realistic expectations for implementation and to understand the total cost and ROI of the investment in the new solution. These are two pitfalls that they almost fell into before being advised by Panorama to set realistic expectations.
There are a host of challenges and lessons in any ERP system selection process. However, these are just a few pieces of advice provided by one of our clients. Listen to the full podcast interview to hear more ERP selection and ERP implementation lessons from the company.
loading...
ERP Vendors Are Working on Upgrades and So is Panorama
When Panorama redesigned its website late last year, we made a conscious effort to have our new website serve as a one stop source for education and news on the ERP industry. In the past week we have continued this quest by launching the first phase of our ERP database.
The new ERP database provides information on the enterprise software industry and lists over 140 software vendors with groupings for the various tier I, II, and III segments. Each ERP vendor has a detailed profile that includes a list of their product offering, an overview of their target market and industry experience, contact information, and recent news or press releases. In addition to the basic profile information, the vendor listings provide an opportunity for website visitors and ERP users to rate their existing software supplier based on a variety of criteria such as presales activity, technical support, functionality, and obtainment of ROI. We feel the vendor profiles and their respective scorecards are imperative for providing an unbiased and unaltered view of the ERP vendors direct from within their user community.
As we move forward into phase two of this launch, we are encouraging the ERP vendors to review their profiles and provide updates, as well as information on their social media communities, literature, white papers, and any images or supplemental content that will help provide the most informative profile possible.
What differentiates this information from other ERP vendor listings is that it is provided for free, without need to register, and without restrictions. While ERP selection and ERP implementation is at the center of our core service offering, website visitors should be informed and educated even if they chose not to engage with Panorama as their chosen independent consultant. This philosophy is aligned with Panorama’s mission statement and the original reason I founded the company years ago.
While the ERP database is quickly becoming one of the most content rich areas of our website, our ERP database is only a part of the upcoming changes. We have more enhancements planned for the 2010 calendar year. I applaud my team for performing due diligence in their research and I look forward to the next phase of functionality that is coming to the ERP vendor profiles.
All of us at Panorama hope the new ERP database helps you and your ERP selection teams become acquainted with the ERP market, as well gives you a baseline for understanding the various offerings and a baseline for choosing the best ERP vendor for your organization’s unique requirements. As always, if my team can be of assistance, I welcome you to contact us so that we can help you make your ERP project a success.
You can visit the ERP database at: http://panorama-consulting.com/resource-center/erp-database/
loading...
Navigating the Bermuda Triangle of ERP Software and ERP Implementations
It’s no secret that the odds are stacked against ERP implementations. As we’ve covered at length in this blog and in our white papers, most projects go over budget, take longer than expected, and/or fail to deliver expected business results. In fact, according to our research, there is a 72% chance that at least one of these outcomes will affect a project and a 34% chance that two or more will do so.
This creates somewhat of a Bermuda Triangle for ERP implementation initiatives. We’ve all heard horror stories about ERP projects that have started the journey toward implementation, only to be lost somewhere along the way. The three forces that contribute to this ERP Bermuda Triangle are:
- High implementation cost and risk
- Long implementation duration
- Low business benefits and return on investment
So how is one able to navigate this ERP software Bermuda Triangle? Below are three tips to navigate each of the ominous forces apparent on any ERP initiative:
- ERP implementation cost and risk. The first step to avoiding the pitfall of high cost and risk is to set realistic expectations. Many organizations fail to adequately budget for critical project activities that will make their ERP implementations successful. While on the surface it may be possible to complete an enterprise software project with limited costs or resources, cutting corners will cost more in the long run. Therefore, it is important to take budgetary estimates provided by ERP software vendors with a grain of salt and make sure that they include “hidden costs,” such as hardware upgrades, training, internal staffing to backfill your project team, and organizational change management.
- ERP implementation duration. An accelerated implementation timeframe may be possible, but it will inherently increase risk. Similarly, an overly optimistic project plan will cause project teams to lose sight of doing more than just going live with the software. For example, any ERP software can be implemented in a very short period, perhaps even days. The question becomes: what do you mean by implementation? If the answer is technically installing the software and perhaps doing some quick configuration, then yes, fast implementations are possible. However, if your definition is business transformation, adoption of the software, and measurable business benefits, then it is important to have realistic expectations for how long this will take.
- Realization of business benefits. The saying goes that if you don’t measure it, you won’t achieve it. The same holds true for ERP initiatives. If you are expecting to see tangible results from your ERP investment, then it is important to not only create a business case to justify the costs, but also to track and manage business benefits going forward. In addition, identifying and implementing business process improvements and executing a robust organizational change management are key contributors to ERP benefits realization.
It’s difficult to make it through an ERP implementation unscathed. However, these tips will help you navigate the ERP Bermuda Triangle and make it through your journey not only alive, but in a way that delivers a high return on investment.
What do you think? Take our poll below and tell us how much business benefit you’re realizing with your current ERP system.
What Level of Business Benefits Are You Achieving from Your Current Enterprise Software System?
- 50-75% of Expected Benefits (50%, 9 Votes)
- Not Sure (22%, 4 Votes)
- 25-50% of Expected Benefits (17%, 3 Votes)
- 75-100% of Expected Benefits (6%, 1 Votes)
- Less Than 25% of Expected Benefits (5%, 1 Votes)
Total Voters: 18
Loading ...loading...
Are You Happy with Your ERP System’s Payback Period?
When a company purchases an ERP System, one question will definitely be asked: How long will it take us to recover our investment? It is a “must ask” question for CIO’s, CFO’s, and IT managers. An ERP system is a large capital expenditure that will consume a great deal of financial and personnel resources. Although functionality and implementation length are very important decision criteria, a short payback period and high ROI will help distinguish one ERP vendor from another.
Payback period is defined as the length of time to recover the total project investment. This calculation begins at the start of the initial outlay of a ERP project. The most common way to determine payback period is through the discounted cash flow model, which takes into consideration total cost savings and realized benefits during the lifetime of the ERP system. Our 2010 ERP Vendor Analysis Report suggests that most completed ERP implementations have a payback period of about two to three years.
Payback Period by ERP Vendor Tier
| ERP Software Vendor Tier | Average Payback Period |
|---|---|
| Tier I ERP Software Vendors | 3.0 Years |
| Tier II ERP Software Vendors | 2.2 Years |
| Tier III ERP Software Vendors | 1.7 Years |
Now that we know there is a clear different between the different tiers of ERP software, would it be fair to say that the payback period after go-live is about the same for each vendor within a given tier?
Payback Period by Major ERP Vendor
| ERP Software Vendor | Average Payback Period |
|---|---|
| Sample Average | 2.7 Years |
| Microsoft Business Solutions (Microsoft Dynamics) | 2.6 Years |
| Infor Global Solutions | 2.7 Years |
| Epicor Software Corporation | 2.8 Years |
| SAP | 2.9 Years |
| Oracle Corporation | 3.2 Years |
| Other | 1.8 Years |
While this data can provide the basis for many assumptions, one must be cautious. It is difficult to definitively conclude that Tier I and Tier II ERP implementations take longer to recover their implementation costs based on ERP software alone. The companies who tend to select Tier I or II ERP solutions may expect longer ERP implementations and high project costs, thus altering the project’s core foundation and leaning itself towards a longer payback period. While one might want to attribute longer payback periods solely to the ERP software and vendor, it is difficult to do so.
It may be more realistic to suggest that Tier I and Tier II ERP projects take longer to recover their investment and while doing so, insert the caveat that some companies choose Tier I and Tier II ERP vendors slightly skew this data because they enter into the projects expecting them have longer implementation timeframes and higher project costs. Thus, allowing a variety of factors to lead to a longer payback period.
When considering an ERP investment, what do you think is an acceptable payback period?
What is Your Estimated or Actual Payback Period for Your Enterprise Software Investment?
- 2-3 Years (39%, 7 Votes)
- Less Than 2 Years (33%, 6 Votes)
- 4-5 Years (11%, 2 Votes)
- More Than 5 Years (11%, 2 Votes)
- 3-4 Years (6%, 1 Votes)
Total Voters: 18
Loading ...Blog entry written by Haoyan Sun, Research Analyst at Panorama Consulting Group.
loading...
Managing Your Distribution Software After Go Live
If you have ever been intimately involved with the acquisition of new distribution software, you know what it’s like to experience the thrill of purchasing and implementing the new software package. It’s both exciting and confusing all at the same time.
While the day of go-live may be a huge step in a long battle, it is by no means a final step. It seems that many project teams use the go-live date as their single milestone and key measurement of success. This is a mistake, because going live is just one piece of the distribution software puzzle.
While a solid project plan and good end-user training schedule can mitigate many of the risks that organizations face at the time of cutover, there must be additional reinforcement after the distribution software is in use. An example of this is the “superuser”.
The superuser should be leveraged to provide general support and answer process and system related questions. Immediately after go-live, about 80% of user issues are related to lack of understanding, so a superuser should be the first level of support. Utilizing an organization’s superuser will help limit frustration and increase initial project success.
The need for superusers does not disappear once the organization passes through the initial post go-live period. Employees change roles and turnover occurs, therefore, new employees and reassigned employees will need training. The superuser is a perfect candidate for these ongoing training needs.
Finally, understand that functional use at go-live is only a start to obtaining full ROI. Once the team is comfortable with the new distribution software, it is time to further investigate functional usage and training. Whether you continue to train your superuser or the entire team on more in-depth functionality, ongoing training is a must. Ongoing training and increased functionality usage will go a long way in making sure your organization obtains the maximum benefits from your purchase.
By clearly defining your go-live and on-going support processes as part of your overall distribution software project, you will better leverage your software technology to realize the full scope of business benefits and ROI.
loading...
-
-
- Oracle Consultant – eBusiness Suite
- IT Manager
- Senior ERP Consultant
- SAP Consultant
- Organizational Change Management Consultant
- Senior ERP Business Analyst
- Business Analyst Intern
- Marketing Assistant