ERP projects - what companies think

The annual Panorama survey on ERP projects shows that cost and time schedules are still being exceeded in most cases. The organisation of projects is proving to be particularly problematic. With the ERP software most are nevertheless satisfied. However, the projects are not described as "successful".

192 companies took part in the "2014 ERP Report" published by the analyst firm Panorama Consulting Solutions took part. Large corporations and smaller companies from all sectors and regions provided assessments of ERP projects in an online questionnaire. Here is a summary of the most important results and their analysis.

Trend towards small ERP projects with (nevertheless) long runtimes

To a certain extent, project durations are standing still. In recent years, surveys have also complained about rising costs due to overdue deadlines. The number of overdue projects has even increased (54 per cent of projects have exceeded the deadline). Costs exceeded, 72 per cent exceeded the time).

In contrast, the level of Project budgets decreased. The survey already identified a trend towards smaller projects last year. Probably in order to be able to handle complex processes better within the project. Nevertheless, an average of 16.3 months is still required for a ERP project required. The running time is only slightly reduced despite the small projects.
This is attributed to the organization of the projects. The problems come from the companies themselves. Few of those surveyed plan a budget to support the necessary interventions in project processes. Also for Business process management only less than half spend money. This is also supported by the survey result that only eight per cent of companies have full user acceptance.

ERP popular - but project success?

Despite the poor ratings for project durations, a full 70 per cent are satisfied with their software. However, only 63 per cent consider the ERP project to be successful.
According to the Panorama study, this is due to the lack of definitions of success. If the goals and expectations are not compared with what has been realised at the end (e.g. as part of a project review), it often simply remains unclear whether these goals have been achieved. Especially if users are included in the definition of objectives, they can later make a correct judgement about the success of the project.
Respondents are happy to seek external help. 39 per cent during the product selection process, 29 per cent for Project planning and implementation. Nevertheless, the organisational challenges of a project remain just that: challenges. Nevertheless, the Panorama study advises external support. It is difficult to find the ideal consulting firm.

cloud-ERP: Nobody wants the clouds

Mobility doesn't really work with ERP. The software solution from the cloud remains a rarely chosen alternative. 85 percent of respondents have installed the system on-premise in their own data centre. Eleven per cent use the option of an external provider. Only four per cent choose the cloud or "Software-as-a-Service" (SaaS) option. In the previous year's survey, the figure was 18 per cent. A lack of information and fears about security are frequently cited reasons for the reluctance to use the cloud. According to the Panorama study, cloud ERP providers are secure and reliable. The main argument of ERP cloud providers - low operating costs - often promise more than they can deliver. According to the survey, 54 per cent of respondents have achieved savings of between zero and 40 per cent. That's good, but without looking at the long-term costs. If you want to save money with the cloud option, you should first look at the costs over a longer term - the study advises.

Further information and articles on ERP projects can be found in our series "Successfully through the ERP project“.

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