If you are trying to decide if your organization could benefit from a new or updated Enterprise Resource Planning (ERP) system, your first look should be at your current system. Without first knowing and understanding why you’re even considering a change, a change would do nothing more than create organizational upheaval and garnish little benefits.

Over the last 5 years, studies have shown failure rates range between 30% – 65% failure depending on who did the study, what they studied and the studies definition of failure. However, when failure is defined as at least one of the following, failure rates seem to settle much closer to 50%:

  • Taking over 180% of target time to deliver
  • Going over budget by more than 160%
  • Delivering less than 70% of target requirements

So is it really a flip of a coin whether you get it right? According to studies and statistics, the answer is yes. But according to professional project management groups and some experienced advisory firms, the answer is, it doesn’t have to be. The sad part about all these studies and statistics is that all of them prove there is no 100% guarantee of success. So the real question becomes, “How do you mitigate the risk of failure”?

I’d like to examine that idea over the next several weeks and provide a clearer picture on how to get it right the first time.

Categories: ERP

Clark Green

Clark brings a deep level of experience with ERP companies to KnowledgePath Consulting. He has strong leadership skills, and demonstrated success in manufacturing, supply chain, business unit, and operations performance in multiple industries.