Study: Most companies satisfied with their ERP solutions, but projects still need help

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With proper planning and help from qualified business solutions consultants, companies can enjoy a tremendous amount of success from their ERP installations. More organizations are realizing this now than ever before.

According to a study conducted by Panorama Consulting, the majority of businesses feel positively about their current ERP solutions. Of 172 survey respondents, 86 percent said they were satisfied with their ERP solutions and 60 percent said they were pleased.

However, that doesn't mean projects don't come with their own set of problems. Of those who said they weren't pleased, some went as far as to say their projects were a failure, but most simply didn't know the status of their system. This can be concerning for business owners. If ERP users don't know if their software is working for them, how will they ever enhance the value of their solution?

Eric Kimberling, Panorama Consulting managing partner, gave a statement on the findings and indicated that poor or unknown statuses likely stem from issues related to installation. He also suggested that project overruns are unsurprising.

"ERP project fatigue can affect even the strongest teams," Kimberling said. "When durations stretch and scope increases, it can be tempting to stop working towards goals established in the beginning of the initiative or to change the definition of success as 'getting the system up and running. Independent third-party consultants can provide invaluable assistance by properly planning the initiative, conducting audits and measuring results back to the business case to ensure that the ERP system provides maximized returns."

They key is to get everyone on the same page and to ensure projects stay on point as much as they possibly can. That's where consultants come into play. Working with ERP consulting firms to ensure their projects are on point and that everyone has a similar set of expectations, companies can go a long way toward ensuring the success of their systems.

Understanding the advantages and risks of ERP in the cloud

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Changes in IT infrastructure have spurred a shift in business software implementation strategy. Many ERP systems are no longer installed into traditional environments and companies that properly adapt to these developments are experiencing more successful ERP projects. 

In the past, ERP systems existed on local machines. They were installed into desktops and data was stored in physical on-site servers. Today, cloud computing is changing the way organizations operate, as it allows data and applications to be stored remotely, thus increasing efficiency and alleviating the strain on local systems.

ERP solutions can be implemented into the cloud, which allows end users even greater access than what they had with local systems. One of the primary advantages of a cloud system is that applications and data can be accessed from a number of different devices and platforms. An article in the online publication Cloud Tweaks addresses the benefits of ERP in the cloud, but warns organizations to take caution during the implementation process.

"Offering a host of benefits in terms of cost and convenience, cloud ERP is growing in popularity – more and more vendors are offering cloud solutions, which can be customized, for a variety of industries, and needs," the article says. "However, many companies have made mistakes in implementing cloud ERP systems, and these mistakes can be costly in terms of budget and staff time."

Installing ERP in the cloud requires a substantial amount of careful planning. As is the case with traditional installation, preparation can help alleviate the risk of going over time and budget constraints. Moreover, understanding the advantages and limitations of a cloud environment will help organizations deal with any potential issues they might encounter along the way.

Ultimately, working with an ERP solutions provider can help companies obtain the skills, knowledge and tools needed to ensure a successful ERP installation. 

Before buying, understand the ERP installation process 

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Purchasing an ERP system is a major process that must be handled with a substantial amount of care. Procuring a solution is simply one of many crucial steps. Organizations that experience any setbacks during the implementation, user deployment, customization or training process will struggle to yield a strong return on their investment.

Unfortunately, many companies overlook all the processes required of an ERP project and have fallen victim to time and monetary budget issues. According to a study conducted by Panorama Consulting, the average ERP project cost roughly $7.1 million and lasted 17.8 months. In 2012, 61 percent of respondents said the process took longer than planned, up from 54 percent in 2011. 

Changes in cost and timeliness of installation are due to a number of factors, including the current overall economic landscape.

"While costs, durations and benefits received fluctuate year to year due to economic conditions, implementation trends and data set make-up, the facts remain: an organization is more likely to surpass its cost and timeline expectations and receive less than half of the benefits it expects than it is not," the report says.

Companies that partner with an ERP consultant will be able to mitigate a number of these risks and ensure they maximize the potential of their projects. By refusing to follow the "set it and forget it" philosophy, organizations can establish long-term partnerships that guide them through every step of the process. 

Many projects are long and arduous, but working with a professional consultant and selecting a trusted product such as a Microsoft Dynamics NAV system, companies will be able to streamline a number of processes and follow best practices throughout the procedure. A trusted Microsoft business solutions partner will be able to assist any business with its project.