ERP Implementations Are More Successful Than You Thought

1. ERP Implementations Are More Successful Than You Thought Manufacturing and distribution companies considering new ERP software for their business have often been stymied by their fear of implementation problems. They hear it all the time: ERP implementation is costly, time- consuming and interrupts business operations. Key Findings Based on the study, concluded that many firms are meeting cost and ROI projections with their ERP implementations but may be setting these expectations too low. Here are some other key findings of the study: People and process are the primary reasons for ERP implementation success, not software. Top management support and change management are key factors in successful implementations. Inadequate business processes, re-engineering and poor project planning are reasons for lack of implementation success. A significant number of manufacturing and distribution companies overrate their success and ignore additional attainable returns. Reasons Behind Successful Implementations In determining why a majority of survey respondents reported success, Mint Jutras looked at four critical components of ERP implementations: Setting Goals Scheduling Controlling Costs Evaluating Success Setting Goals

2. ERP implementation should always set goals first and those goals should form the basis of ROI expectations. ERP solution should always identity specific, quantifiable goals, regardless of whether the project is a new solution, a significant upgrade or a replacement of an existing system. The top three most important goals reported by survey participants were: 1. Specific business cost savings (46%) 2. Improve selected performance metrics (46%) 3. Reduce frustration and improve efficiencies in transacting business (40%) Scheduling Companies of different sizes set different implementation schedules based on when they will begin to see quantifiable results. Some companies go live all at once, while others have a more incremental go-live schedule. Large multinational firms may go live with a single division. Controlling Costs The study helped dispel the myth that large ERP budget overruns are common: 41% of participants stayed on or under budget. 35% were less than ten percent over budget. 26% went over budget by more than ten percent. Evaluating Success Most of the survey participants rated their implementations a success, and aggressive implementations were twice as likely to have exceeded their goals than companies that expected implementations to take over a year. Additional Benefits ERP can help companies in many additional areas, including improved data accessibility, improved inventory accuracy, increased collaboration and improved on-time deliveries.

3. The Myth of ERP Failures In the early days of ERP, it was common for companies to go over budget with their implementations, and many implementations did fail. However, in today’s manufacturing and distribution industries, high ERP failure rates due to scheduling, costs and ROI are a myth. Two thirds of the survey participants rated their ERP implementations as successful, only 26% went over budget by more than 10%, and 82% achieved their projected return on investment. That is not to say that implementing ERP is easy. It can be difficult and disruptive to your business and requires a different set of skills than those used to run a business. Based on this new study, Mint Jutras recommends that companies set high expectations for new ERP solutions and, for companies who have already implemented ERP systems, it may be time to go back and see if the solution is living up to its potential. Visit http://www.xiraerp.com for ERP software company in Vapi , Trading ERP development company in Vapi, Manufacturing ERP Software In Vapi, Billing ERP Software In Vapi, ERP software companies in Vapi, Best ERP Software Company in Vapi, GST software companies in Vapi, ERP software providing company in Vapi, GST Billing Software Vapi, GST Accounting Software Vapi, Transport Erp Vapi.