ICT Portalthe analyst and main verifier of technological information of Seville origin, has announced that more than 40% of software implementation projects Enterprise Resource Planning (ERP) it fails in the attempt, according to a study carried out among European companies (half of them Spanish). Of this 40%, 27.7% of the companies surveyed stated that the project was stopped and 14.6% that it had been postponed. “An ERP system automates business processes increasing productivity and reducing costs. But getting an ERP project to go well is not that simple. For this reason, thorough prior preparation is essential, with information and neutral advice that does not come from any interested party.“, it states Tim Rood, CEO and founder of TIC Portal. “The objective of TIC Portal is to provide the companies that face these projects with all the necessary resources to make the right decision. For this reason, we have also created a documentary about this technology”.
What is an ERP? The documentary
TIC Portal has built the first documentary yesAbout the exciting world of business management through ERPs based on the technical, neutral and detailed information that the verifier has obtained during his more than ten years of experience and advice on projects for the implementation of this technology. The documentary covers the key questions that arise during the journey towards the implementation of an ERP, the main reasons for the failures and the keys to the success of an initiative of these characteristics.
Other survey data
Regarding the survey, only 22% of the companies asked answered that they had completed the project, while 35.7% declared that they “were working on it”. In addition, more than a third of the companies stated that the implementation time had taken longer than expected. It is important to take into account that the companies questioned had started their implementation projects at least six months before participating in the survey. Of the 22% of companies that had completed the project, a quarter stated that the implementation was not successful or could have gone better. Of the 35.7% of companies that stated that they were in the process of implementation, almost 45% stated that it was not expected to last that long. Those who stopped the project or postponed it stated that the main reason was other business priorities. In more than half of the projects already executed, the costs were higher than expected. However, most of the companies questioned -80.5%- indicated that, once the implementation was finished, the ERP systems met expectations.
The main keys to success according to the companies surveyed were:
● Thorough preparation before the project
● Management’s conviction
● An exhaustive analysis of the needs to be covered
● A realistic vision of the costs that will be incurred
● The quality of the supplier
The survey reveals other interesting data such as that 53.2% of the companies that had completed the project said that the total costs had been higher than expected, 63.8% declared that they had encountered obstacles in the implementation and only 19 % had calculated the ROI beforehand. The survey has been carried out on more than 200 companies from practically all sectors of activity with the exception of Public Administrations.
