Counting the cost [enterprise resource planning]

Enterprise resource planning (ERP) systems were introduced into organisations to provide a fully integrated business solution and maintain competitive advantage. However, many implementations experienced cost and schedule overruns and loss of system functionality. A need to investigate this issue and identify leading practice was raised and work has been done by the UK lean aerospace initiative at the University of Warwick, supported by industry through the Society of British Aerospace Companies (SBAC) and the Engineering and Physical Sciences Research Council (EPSRC). The study found four significant areas of concern: systems are often way over the expected cost; they are usually delivered late; they do not do half of what was promised; and jobs are lost because of this. Cost and schedule overruns can be avoided if the appropriate precautions and factors are considered and fully implemented. ERP systems can deliver process efficiency and massive benefits when implemented correctly. They have also become so encompassing that they may drive the future success of a company, so they must be done right.