Why do CEOs and CIOs hate ERP implementations?

Here's my twist . . .

Why do CEOs and CIOs love ERP implementations?

To Shim's point, the cost calls the value proposition into question, the process is nearly guaranteed to take noticably longer than planned, scarce corporate resources are diverted in great numbers away from other priorities, and all too often the process stops short of genuine completion because of these issues. Not to mention that the down-the-road investment in maintenance and upgrades can be staggering, and fall prey to the same issues that dogged the initial implementation.

The answer is simply risk (which no one likes), perhaps prior experiences that they have gone through, and/or combined with the media attention to some failed implementations. Please note that successful implementations don't make the headlines. Much like good officiating at sporting events, only the bad calls get the attention.

Given that, there are a key things to to do to minimize the risk:
1) Do a thorough job of due diligence on not only the ERP vendor, but also on the reseller or third party performing the implementation; if you are using a reseller or third party for the implementation/deployment.
2) Keep in mind that the implementation really needs to be a team effort that involves the implementation company, the employees tasked with the implementation project success and the Executive team. The Executive team is critical in that it needs to show support, provide adequate resources, demand accountability, and to monitor progress.
3) Get key stakeholders involved to make sure every functions needs are heard and addressed appropriately.

As a note, given my experiences and observations, I do disagree with the Shim and Art with regards to cost and "nearly guaranteed to take noticeably longer than planned". In addition, the positive impact of a successful ERP deployment has been well documented. One source is The Aberdeen Group, but there are plenty others, so "cost" should not be an issue if the return is justified.

Also, while I am President & CEO of an ERP solution company, therefore perhaps biased, but also have some great reference points, there are plenty of instances where the cost of the implementation phase was on Budget and on Time. In fact, just speaking from my company's perspective, it is the exception and not the rule that there will be cost over-runs and time delays. Having said that, keep in mind my above comments regarding the implementation is a team effort. The cause of over-runs or delays does not necessarily always point to the ERP solution company or the reseller/3rd party implementation team.

I will gladly have a more detailed discussion on this with anyone that wants to contact me directly or on Focus.com as I am quite passionate about the subject.

Bob

bswedroe@expandable.com