ERP Implementation Timeline and Budget Overrruns

ERP Implementation Timeline and Budget Overrruns

An ERP implementation timeline can be tricky.  Implementations seem, for many, to be defined by budget variances and timeline overruns. Though it seems to be the nature of these projects, it’s not necessary. There are specific reasons why ERP implementations run into problems.

Panorama Consulting publishes a lot of great information about selecting and implementing ERP systems. They recently published a new report:

Panorama Consulting Solutions developed the 2013 ERP Report to investigate ERP software selection, implementation and satisfaction trends across industries, company sizes and geographic locations. The report summarizes Panorama’s independent research into the experiences of ERP customers with regards to enterprise software, vendors, consultants and implementations overall.”

Key reasons for ERP implementation Timeline and Budget Overruns:

  1. Budgets and timelines do not take into account the additional impact of business improvement processes, organizational change management and resource allocation. A new ERP implementation is about a lot more than installing new software. The impact on the operating business has to be seriously considered and planned for. Typically the amount of time that employees have to divert from their regular tasks, to the new project is way underestimated.
  2. ERP selection steams focus on the reputation and sales presentation of the ERP developer. It’s much more important to focus on how the new software will meet current and future requirements.
  3. New system training is not customized to the specific organization’s needs and the abilities and capacities of the new users. To be effective training has to be personalized to meet the specific requirements of the organization and its employees. The training portion of an ERP implementation is typically undervalued and maybe even partially defunded as the project nears the go-live stage. This is a big mistake! To get the greatest ROI from a new ERP system, the users have to know how to use it.
  4. “Lack of concerted communication to end-users about the reasons behind the implementation, the anticipated benefits stemming from successful adoption and the ways in which each individual end-user and executive will affect project success or failure.”

According to Panorama Consulting Solutions, “The first key to preventing overages is to find software that matches the organization’s needs and only requires customization in areas that provide competitive advantage. The second is to improve processes and ensure end-users and supervisors are well trained, understand the reasoning behind the changes and are held accountable for proper system usage. The third step is to invest in an organizational change management campaign to increase buy-in, boost morale and communicate key messages from executive leadership over the span of the project.”

You can download the entire 2013 ERP Report from Panorama Consulting Solutions’ web site here.

Check out or Cloud Resource Library to find more information about ERP solutions:

ERP Implementation Timeline Overruns and Budget Overrruns

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