Interesting posting. If I understand you correctly, you're suggesting that using open source software or SaaS offerings for the things that commercial ERP typically gets used for, would increase success rates?

Could you expand on how?

The Panorama study you refer to indicates a few common problems - lack of buy-in, lack of expertise being the most prominent two - none of which seem to be related to whether the software used is open source, proprietary, or provided as-a-service ?

Those problems are related to issues like the nature of business processes involved, changing the roles+jobs+skills at the same time as the system without dropping the ball, engaging and incentivising the stakeholders etc. But not the type of software.

So I'm not clear. Are you questioning the (proprietary) software, the scope and design of the projects, the quality of the business cases, the cost of people who understand these types of systems, the idea that large-footprint pre-integrated enterprise systems are a good idea at all, or something else?

It's not that Open Source and SaaS aren't forces for good. They undoubtedly are. But I don't understand your association of them to ERP project success rates?

Apologies, that comment was related to your more recent posting about ERP Backlash at

http://advice.cio.com/thomas_wailgum/erp_backlash_coming_soon_to_a_company_near_you

that links to this one.

Well, shall we take another look at this report and see if the glass if half empty or half full? The narrative would lead you to think that only failure awaits an ERP implementation but the numbers do not reflect the tone of the piece.

If thirty-eight percent of respondents indicate a lack of employee buy in as the biggest challenge then sixty-two percent do not see this as the biggest challenge. If fifty-seven percent of implementers face operational stoppages after go-live then forty-three percent do not face stoppages. (Which doesn't even mention the nature, duration, or business impact of the stoppage. It could be serious, ala Hershey's infamous ERP project or almost meaningless as in "we stopped shipping for a day".)

Let me get back to the employee buy-in question. While project teams are critical to the success of ERP projects, you will never, never, never get across the board buy-in from the people on the shop floor and in the front office. Business leaders are paid to do one thing: Lead.

The studies I like to see focus on the return on investment of ERP projects. The most useful studies also give us metrics from which we can judge success or failure. I vote for more studies like these.

Yours,
Mick Andrus

I've read many articles on ERP failure. Of course, I am scared. I have few questions:

1. Do you really need an ERP?
2. What is another alternative for ERP?

Thank you.

As someone who has done several ERP implementations, I have experienced the good, bad and ugly side of these. There are always individuals at all levels within the organization that will be on the bus, while others prefer to be under the bus. The key is to review your business processes and match with the ERP software, where it makes sense to do so. Next you must keep an open mind regarding what functionality/process flows are built into the system and determine why it may/may not be applicable for your organization. I have experienced many ERP successful implementations, by following the above. TCO and ROI should not be missed, but you need to focus on the functionality, put in an ERP with a good solid base, and test, test, test with your data, using full cradle to grave flows BEFORE you go live. If you cannot enter an order, pick it, ship it and invoice it prior to go live, then you should not go live until you can.