Leading an ERP implementation is probably not on many people’s “bucket lists.” Yet many brave souls have lived to tell their stories—sharing their valuable lessons learned along the way.

The views of 246 respondents who have rolled out ERP in the last year can be found in Panorama Consulting’s 2012 ERP Report, which analyzes ERP selection, implementation and benefits from those surveyed. (Free copy of the report here with registration.)

First things first: There’s nothing inherent in the results that will shock anyone who’s been involved with or followed enterprise software. The fundamental guidance contained within the report would be just as applicable in 1992 as it is in 2002 or 2012: It’s all about the people and processes—and the technology follows from there. But many still struggle to get it right—budgets and project timelines are still blown with regularity.

Here are a few highlights from the report that reinforce tried-and-true ERP implementation tactics:

Choosing the ERP software is the easy part. Implementing it is when things can get dicey. “Companies are doing themselves a great disservice if they believe that software selection is the ‘hard part’ and that all the functions and capabilities of the software will instantly be realized if they just choose the right one,” notes the report. “The fact of the matter is that most ERP software is robust and customizable and can be adjusted to fit just about any business. It is when the implementation gets going that satisfaction rates (as well as benefits) start to drop.”

To customize or not? That is the question. The Panorama report doesn’t definitely say whether companies should or should not customize their ERP software. There are, of course, too many variables to account for. But the report does make one point that’s worthwhile for all executives who believe their processes are too unique to bend to the ERP software’s will: “While it can behoove a company to change non-differentiating processes, Panorama methodology shows that the software should be changed to protect any process that provides competitive advantage or differentiation.”

The results show that 41 percent of respondents changed business processes to accommodate ERP functionality, whereas 27 percent changed or customized ERP functionality to accommodate current business processes.

Change-management challenges—same as it always was. This will probably shock you, but those companies rolling out ERP programs today still have serious difficulties in planning for change-management considerations: 63 percent of surveyed companies “experienced difficulty in addressing process and organizational change issues,” notes the report. “There is no question that companies need to get better at addressing these concerns early in the project to avoid increased costs, timelines and failed implementations.”

Are we sticking to the schedule? ERP project timelines will vary from company to company, but the survey results show “16 months” as the average time to implementation. How did the respondents fare in sticking to their schedules? Nearly 40 percent were on schedule (Huzzah!), though 54 percent ran over schedule (bummer). However, 8 percent came in under schedule (bravo!).

For more on ERP implementation and upgrade best practices—straight from the mouths of ASUG members—see From SAP Go-Live to Upgrade: CIOs’ Advice to Ensure Boring Affairs.

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2 Comments for ERP Implementations in 2012: Truths, Tactics and Threats

Aditya

Great article and advice.Selection of a solution and vendor is important as are establishing a clear vision and objectives this will ease the implementation process.Just read an interesting whitepaper ,Beyond Quickbooks – Choosing the right ERP solution for your organization , on advantages of ERP and strategies for successful implementation @ http://bit.ly/zSEOXf

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