Today’s manufacturing and distribution organization faces an array of issues when looking to select and implement enterprise technology to help them streamline operations.
A typical question we hear from manufacturing and distribution companies is what a successful enterprise technology project looks like.
A recent ERP Implementation survey Ultra Consultants commissioned answers that question, and explores other factors when it comes to driving a successful enterprise technology project.
Entitled “The Real Facts about ERP Implementations,” the report surveyed hundreds of North American manufacturing and distribution companies.
The survey of mid-market manufacturing and distribution organizations shows that most of the reasons for success have more to do with organization (people and processes) than with the software itself.
Good planning and organization clearly pay off.
Survey Findings
As an independent ERP consulting firm, ERP implementation success is a topic that comes up often as project teams look to Ultra to understand the best way to work through enterprise system projects to improve key processes.
The study of ERP implementation success by manufacturers and distributors found 67 percent rate their implementations as successful or very successful.
• As the survey revealed, the primary reasons for ERP implementation success have to do with people and process, as well as change management.
• Reasons for lack of implementation success include inadequate business process re-engineering and inadequate project planning.
• While many ERP implementations meet expectations in terms of schedule, budget and ROI, the Mint Jutras/Ultra Consultants study shows a significant number of manufacturing and distribution companies’ over-rate their success and leave additional attainable returns on the table.
Additional Findings
We encourage every ERP project team to look into these details, including:
• When it comes to ERP implementations, research shows the power of setting goals. An industry survey reveals that if a current solution is not meeting organizational goals, or if goals were never established, it pays to step back and perform an audit of the current solution to determine if it is living up to its full potential. Then determine if that full potential is enough to give a competitive edge. If not, it may be time to replace it.
• This ERP implementation survey proves that fast and aggressive doesn’t equate to quick and dirty. An objective third party can get enterprises a bigger ROI faster, ultimately paying for itself. The report from the most current manufacturing and distribution sector survey concluded that ERP implementation should never be viewed as complete and the ROI should be sustainable.
• Reasons for projects going over budget include expanded project scope, additional technology needs, and business changes within the organization.
• As the report concludes, those that go about an implementation most aggressively produce more results, more quickly. Consider getting help from certified independent experts to help define goals, set an aggressive (but achievable) schedule, and stay on track.
Perspectives on the ERP Implementation Survey
What’s interesting is that this survey busts some commonly help myths.
ERP project disasters may have been quite common in the early days of ERP. It’s noteworthy that this study reveals as myth the once-cited high rates of failure in terms of schedules, costs and payback.
Solutions today are far more technology-enabled, easier to implement and easier to use. Equally important is management support of the project and change management initiatives.
This research study is a long time coming in that it reflects performance of current offerings of modern ERP systems now available to manufactuers and distributors.
The study and report analyze that most ERP implementations drive value, are on time and meet budget expectations.
It also reveals the importance of setting goals for a project, and putting the focus on people and processes, not just technology.
Get the Survey
The report is based on more than 300 North American manufacturers and distributors, focusing on the success of their ERP implementations in terms of schedule, cost and return on investment (ROI).
The survey reviewed goals and expectations, whether they were achieved, and why.
Survey respondents included companies ranging in size from $25 million to multi-billion dollars in annual revenues, and from recent implementations, as well as those that were more mature.
About Ultra Consultants
Ultra Consultants is an independent research and enterprise solutions consulting firm serving the manufacturing and distribution industries throughout North America.
The consulting team focuses specifically on business process improvement initiatives unique to the manufacturing and distribution sectors.
Services include business process improvement, enterprise technology evaluation, selection and implementation.
Founded in 1994, more information on the company's services, leadership, industry verticals served and thought leadership can be found at www.ultraconsultants.com.
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