Volume 23, Number 9 -- March 4, 2013

New ERP Installs Get Mixed Returns, Panorama Says

Published: March 4, 2013

by Alex Woodie

Implementing an ERP system is a notoriously difficult thing to do. By some estimates, more than 60 percent of ERP implementations are doomed to fail. And yet, companies continue to adopt them, because. . . well, they have to. The ERP watchers at Panorama Consulting recently checked into the state of enterprise software implementations with its annual ERP report, which detected the requisite unhappiness in recent ERP adopters, but also found some satisfied customers, too.

From September to January, Panorama Consulting corralled 172 of its customers onto its website to take a survey about their recent ERP installations. The company then aggregated the data, and presented it in its 21-page 2013 ERP Report, which can be freely downloaded from its website.

Panorama's report has lots of good data regarding ERP implementations, including:

  • How long did the average ERP installation take (17.8 months).
  • How much did the average ERP installation cost ($7.1 million).
  • Why do companies embark on them (45 percent replaced old packaged ERP applications, 16 percent replaced home-grown systems, and 6 percent replaced paper-based systems).
  • What ERP packages they installed (SAP, Oracle, Microsoft, Epicor, and Infor were most selected when on the short-list).
  • How the software runs (61 percent on-premise, 14 percent SaaS, 12 percent hosted and managed as a cloud service).
  • And how they used consultants (at the end of the day, Panorama is an IT services firm specializing in ERP selection and implementation. All the reports, blogs, and analysis are side gigs for the Denver, Colorado firm).

What stood out the most in Panorama's report, however, were the mixed messages customers gave regarding their overall satisfaction with their ERP implementation. When Panorama asked how happy customers are with the ERP outcome, 32 percent said they were moderately satisfied, 28 percent said they were satisfied, and 21 percent said they were moderately dissatisfied.

What's more, 86 percent of Panorama's survey-takers said they were satisfied with the system itself, 60 percent indicated their ERP project was a "success," and nearly 70 percent indicated "at least some level of satisfaction with their chosen ERP vendor."

But on the other hand, 53 percent of respondents reported cost overruns, 61 percent reported time overruns, and 60 percent said they had received less than half the benefits they expected. These numbers are, more or less, in line with results from past ERP reports. But they are not pretty. The fact remains that an organization is more likely to surpass its cost and timeline expectations and receive less than half of the benefits it expects from its ERP roll-out, according to Panorama.

This is quite a disparity in the data, and it raises questions about the mindset that organizations have going into an ERP implementation, and how they define "success."

"The delta between actual ERP implementation results and the self-reported satisfaction levels," states Panorama managing partner Eric Kimberling, "indicates that companies are setting expectations of the business benefits they should achieve from an ERP system far too low and likely neither developing the performance measurement indicators they need to accurately determine ROI nor sharing those indicators with their employees."

The horror stories of botched ERP implementations are widespread in the industry, and it gives every company pause before considering a new ERP system. Successful ERP rollouts have one thing in common: they all demand exhaustive planning, comprehensive controls, and endless communication among all the stakeholders involved. Instead of lowering their expectations and making do with a sub-optimal ERP implementations, companies that want to succeed with their ERP are better off investing in more planning, controls, and communications.

What are your experiences with your recent ERP implementations? Let us know by sending us a message through the IT Jungle contacts webpage.

You can download the 2013 ERP Report by signing up for a free account at


Cloud and SaaS ERP Surges, Along with Tier II Providers, Panorama Says

                     Post this story to
               Post this story to Digg
    Post this story to Slashdot

Sponsored By

The 4 Keys to RPG Application
Modernization Success

Live Webinar featuring Brian May

March 20, 2013 | 10:00-11:00 AM PST


Learn how to unlock extraordinary IBM i applications
and become an RPG hero with the right tools!
IBM Champion Brian May will demonstrate the
four key qualities to look for in a tool
when modernizing your applications for
the Web and mobile devices.

Register now!

Editor: Timothy Prickett Morgan
Contributing Editors: Dan Burger, Joe Hertvik, Victor Rozek,
Jenny Thomas, Hesh Wiener, Alex Woodie
Publisher and Advertising Director: Jenny Thomas
Advertising Sales Representative: Kim Reed
Contact the Editors: To contact anyone on the IT Jungle Team
Go to our contacts page and send us a message.

Sponsored Links

Profound Logic Software:  Live Webinar: 4 RPG Keys to Application Modernization Success. March 20
BCD:  IBM i Webinar - March 7. Jumpstart Web App Development with WebSmart Mobile
looksoftware:  Free Live Webcast: HTML5 & IBM i - Connect, Discover, Create. March 12 & 13



More IT Jungle Resources:

System i PTF Guide: Weekly PTF Updates
IBM i Events Calendar: National Conferences, Local Events, and Webinars
Breaking News: News Hot Off The Press
TPM @ The Reg: More News From ITJ EIC Timothy Prickett Morgan

Four Hundred Stuff
PowerHA Installs Exceed 2,000 Globally, IBM Says

PowerTech Shines a Light on 'Black Hole' Commands

Vision Launches Cloud Initiative for RaaS

Cilasoft Monitors Additional Exit Points with IBM i Security Tool

ARCAD Updates IT Service Management Tool

Four Hundred Guru
Stored Procedure Parameter Defaults And Named Arguments In DB2 For i

New CL String-Handling Functions

Getting Short-Term Maintenance For Your Power i Machine

Four Hundred Monitor
Four Hundred Monitor's
Full iSeries Events Calendar

System i PTF Guide
March 2, 2013: Volume 15, Number 9

February 23, 2013: Volume 15, Number 8

February 16, 2013: Volume 15, Number 7

February 9, 2013: Volume 15, Number 6

February 2, 2013: Volume 15, Number 5

January 26, 2013: Volume 15, Number 4

TPM at The Register
SGI rejigs financing ahead of possible asset sale

The server racket recovers from the Great Recession
Rackspace swallows ObjectRocket for MongoDB smarts

Revolution weaves predictive analytics into Hortonworks Hadoop

Intel takes on all Hadoop disties to rule big data munching

Inside Intel's deal to let FPGA biz Altera use its 22nm TriGate fabs

Cloudera sends in the auditors for Hadoop

EMC morphs Hadoop elephant into SQL database Hawq

Mellanox pumps up channel for InfiniBand, Ethernet pushes

IBM skips BladeCenter chassis with Power7+ rollout

Unisys re-ups $650m deal to look after US taxman's big iron

Rackspace cuts network bandwidth prices on its cloud


Profound Logic Software
Linoma Software
WorksRight Software

Printer Friendly Version

Entry Power7+ Servers: Those 720+ and 740+ Boxes Are Gonna Cost Ya

Power7 Is The End Of The Line For Power Blades

Enthusiasm, Persistence, And The IBM i Payoff

Mad Dog 21/21: If You Want Cheap Cloud Backup, Raise Your ARM

The Server Racket Holds Its Own In The Fourth Quarter

But Wait, There's More:

Reader Feedback On Big Blue Jacks SWMA For IBM i, Application RISC Machine System/500 . . . IBM Server Partners Get Extra Incentives, IBM i Scores Another Supply Chain Win . . . New ERP Installs Get Mixed Returns, Panorama Says . . . COMMON Hopes Everything Is Bigger in Texas . . . Does Working At Home Really Work? . . .

The Four Hundred


Subscription Information:
You can unsubscribe, change your email address, or sign up for any of IT Jungle's free e-newsletters through our Web site at

Copyright © 1996-2013 Guild Companies, Inc. All Rights Reserved.
Guild Companies, Inc., 50 Park Terrace East, Suite 8F, New York, NY 10034

Privacy Statement