A recent survey conducted by Mint Jutras and commissioned by Ultra Consultants focused on busting myths around ERP implementations—whether they are doomed to fail or whether ROI expectations are high enough. For most small- to mid-sized manufacturers, ERP is a necessary evil because at some point managing a complex operation via spreadsheets becomes unsustainable. You likely won’t ever hear a manufacturer say they’re truly looking forward to implementing an ERP. So, what are some common myths and what are the facts?
Myth #1: Most ERP Implementations Fail
One of the reasons why ERP implementations are met with such trepidation is they are not easy. Even today’s modern, cloud ERP solutions still require you to examine your business processes and how your organization collaborates as a whole. Sensationalized industry headlines about failures only add to the fear. The truth is many companies do experience successful ERP implementations. With the right goals, schedules, and communication, ERP can be the catalyst for a positive transformation. In fact, respondents (manufacturers and distributors) to the Mint Jutras survey show this to be true: 67 percent rate their implementations as successful or very successful. Thirty-one percent said they achieved partial success and a meager 2 percent said they were not successful.
Myth #2: ERP Implementations Tend to Run Over Budget
As more needs get added to an implementation, timelines and budgets tend to go out the window. This is commonly referred to as “scope creep.” While it does happen, Mint Jutras’ survey response dispels the myth of ERP budget overruns and failure: 41 percent stayed on or under budget, 35 percent were less than 10 percent over budget, and 26 went over budget by more than 10 percent. The way to keep scope from getting out of control is to be clear about what business goals you want to accomplish after go live, then prioritize everything that doesn’t fit into those goals for future projects. To get the most out of your investment, your ERP should continue to evolve as your business does.
Myth #3: Once ROI is Achieved, the ERP Implementation is Done
It’s understandable that once ROI is calculated, the company considers the implementation done. There are however, many more benefits to reap from an ERP. Essentially, the solution can be an ongoing source of sustainable returns. A SaaS cloud ERP means no capital expenditure required. IT staff can focus on more value-add activities rather than maintaining the solution. Speed, efficiency, and productivity can also be added to the list of potential benefits. Fifty-one percent of respondents to the Mint Jutras survey cited better accessibility and availability of data.
Get more insights by downloading the report: Real Facts About ERP Implementations.