I grew up on (ERP) pain. The quickest way to find unemployment was to be selected to be the program manager implementing the company’s new ERP system. Actually, in reality the death was long, slow, and painful. A new study conducted by my old friend Cindy Jutras lays the old myth to rest.
Ultra Consultants, an independent enterprise solution consulting firm serving the manufacturing and distribution sector, published an industry survey conducted by Mint Jutras, researchers specializing in analyzing the business impact of enterprise applications. The in-depth report resulting from the survey is titled The Real Facts about ERP Implementation: Busting the Myth of Failure, But Are You Overrating Your Success?
In late 2018, Mint Jutras surveyed more than 300 North American manufacturers and distributors, focusing on the success of their ERP implementations in terms of schedule, cost and return on investment (ROI). The study of ERP implementation success by manufacturers and distributors found 67 percent rate their implementations as successful or very successful.
The report findings show that previous statistics related to lack of ERP implementation success rates are out of date, and “flip the script” on often cited success rates from previous years. Highlights of the study include:
- The Mint Jutras/Ultra Consultants study found that the primary reasons for success had to do with people and process, and not just software. Key success factors include top management support and change management.
- Reasons for lack of implementation success include inadequate business process re-engineering and inadequate project planning.
- While many ERP implementations meet expectations in terms of schedule, budget and ROI, the Mint Jutras/Ultra Consultants study shows a significant number of manufacturing and distribution companies over-rate their success and leave additional attainable returns on the table.
“ERP project disasters were quite common in the early days of ERP. It’s noteworthy that this study reveals as myth the once-cited high rates of failure in terms of schedules, costs and payback,” notes Cindy Jutras, President of Mint Jutras. “Solutions today are far more technology-enabled, easier to implement and use. Equally important is management support of the project, and change management initiatives.”
Notes Jeff Carr, Founder and CEO of Ultra Consultants, “This research study reflects the performance of current offerings of modern ERP systems now available to manufacturers and distributors. The report shows that the majority of ERP implementations drive value, are on time and meet budget expectations. It also reveals the importance of setting goals for a project, and putting the focus on people and processes, not just technology.”