Backblog | Enterprise Resource Planning (ERP)

Organizations that have implemented ERP systems have long complained that deployments are too costly, time consuming and risky, so it is pretty rare that organizations look at ways to leverage enterprise software to drive innovation. Indeed, without the right expertise and guidance, ERP implementations can be difficult, even without the grand ambition of driving innovation.

Selecting and implementing a cloud ERP solution is a long-term project which impacts every department in the company. It requires many different aspects of the company to come together and initiate changes to procedures and operations. As a result, there are a lot of ways that a cloud ERP project can get off track.

It’s often been said that 80% or more of ERP implementations are considered failures. In fact, one of the findings of our 2013 ERP Report is that most ERP projects take longer than expected, cost more than expected, and fail to deliver expected business benefits.

ERP solutions can be a huge boon to your business, streamlining operations and saving thousands over the life of the system. However, companies can also fail to realize the potential of their ERP solutions, ending up with systems that are expensive while being only partially successful.

One of the interesting takeaways from our 2013 ERP Report released earlier this year is the apparent confusion between the perceived success and actual results of ERP implementations.

Being an ERP consultant isn’t necessarily the most glamorous or well-respected career that one can pursue.

At the beginning of an ERP implementation, no one involved wants or expects to get caught up in a lawsuit. Despite the fact that, according to our 2013 ERP Report, most ERP implementations take longer than expected, cost more than expected, and fail to deliver expected business benefits, most organizations commence their projects with the best of intentions. Other than the occasional CIO or CFO who is afraid of losing his or her job, not many are thinking about ERP failure this early in the project.

Much has been said about the demise of American manufacturing. There is a general sense that manufacturing jobs are being moved overseas to China, India, and other developing markets, yet from what we can tell, U.S. companies and other developed multi-nationals are still looking for ways to leverage ERP systems.

In it’s simplest form, eCommerce integration is the coordination between an eCommerce site and back-end inventory and accounting (ERP) system.   Having a fully integrated system that connects your back-end ERP software to your front-end eCommerce site is designed to streamline processes across all departments of your organization.

Much skepticism and uncertainty has clouded the ERP industry for the last several years. Bloated and ineffective implementations, high risk, ERP failures, lawsuits and cumbersome software have given many ERP vendors somewhat of a black eye over the last several years.

In our top ten predictions for 2013 blog posted last month, we highlighted mobile ERP systems as one of the key trends to gain momentum in the coming year.

Cloud ERP systems are getting a lot of attention these days. SaaS ERP vendors – such as Salesforce, Workday and Plex Systems – and other cloud providers are demonstrating revenue growth that most traditional ERP vendors aren’t seeing.

Purchasing ERP software can be a complicated endeavor. In addition to functional fit, organizations considering a new ERP system need to think about things like technical fit, vendor viability, the business case analysis, organizational readiness, implementation planning, and a host of other variable that constitute an effective ERP selection process.

It’s hard to believe that 2012 is already drawing to a close as we all prepare for holidays, vacations and New Year’s celebrations. This last year was another interesting one for the ERP industry and its stakeholders, including Panorama and our clients as well as ERP vendors and other ERP consultants. Here are just a few highlights from the past year:

Over the past 15 years, I have seen my share of successful ERP implementations. The Panorama team and I have successfully managed a number of complex implementations over the years — ranging from SAP to Oracle E-Business Suite, to Microsoft Dynamics to Tier II ERP implementations — and have the battle scars to show for it.

You come across it all the time. You read it on the ERP vendor websites, you hear it from ERP software sales reps, and you see it in proposals: “Don’t worry about business process reengineering – our ERP software will tell you how your processes should work.”

CFOs and CIOs of most organizations begin their ERP implementations with the expectations that their businesses will be transformed along the way. Using the power and flexibility of ERP systems such as SAP, Oracle, Microsoft Dynamics and Tier II ERP software, executives expect material cost improvements to their supply chains, more effective interactions with their customers, and better visibility to operational information.

ERP implementations more often than not run counter-intuitive to lean concepts. While lean and Six Sigma cultures focus on reducing waste and non-value-add activities, most ERP implementations are bloated with inefficiencies and cost overruns.

As details regarding Knight Capital’s dramatic ERP failure continue to emerge, it becomes clear that organizations that don’t effectively handle their ERP implementations can (and often do) end up paying a price almost beyond comprehension.

Choosing an ERP consultant to help select and implement your ERP system can be one of the most significant decisions that a CIO or CFO makes in their careers. However, since executives only conduct this type of search a handful of times  at the most (if they’re doing their job right), they are typically flying blind when making this important decision.

One of the key components of our ERP software selection methodology is contract negotiation with ERP vendors. As a result of our unique blend of independence, focus on ERP consulting and extensive knowledge of the ERP software industry, we are able to provide our clients with a negotiation experience that delivers desired results, quantifiable benefits and a very strong return on investment on our consulting fees.

The last few years have proven to be a time of evolution and change for ERP systems. Cloud computing, software as a service (SaaS), mobile technologies, social media and business intelligence are just a few examples of the trends affecting the ERP software marketplace. This changing landscape makes for an exciting — if potentially confusing — time to purchase ERP software.