Big ERP Falls Short on Change

IDC Study Reports $Millions in Lost Opportunities
Cites Cost of Disruption

Is every aspect of your business set in stone? If not, then you should think very carefully about your choice of business support systems. New research from industry analyst IDC warns that buying into big ERP’s unwieldy software model can seriously disrupt business and hold back growth.

In a groundbreaking study, IDC concluded that big enterprise resource planning (ERP) systems are not providing businesses with the architectural agility necessary to support today’s high-change environment, resulting in significant business disruptions. The financial and strategic impact of these disruptions is staggering.

 

The study features the experiences of 214 business executives across a wide variety of mid-sized and large industries. Survey respondents said that the inability to easily modify their ERP systems is causing: delayed product launches, slow decision-making, delayed acquisitions and other activities that ultimately cost them $10-500 million in lost opportunities.

The key areas impacted:

  • Stock declines on average by 20.9%
  • Customer satisfaction erosion by 16.6%
  • Lost revenue reported to be 14.3%.

“IDC believes that while business change is an inescapable constant, organizations may lack an understanding of the potential cost/impact of business disruption tied to adjusting their ERP systems. For ERP buyers in high-change environments, this means that ‘architectural agility to support ongoing change,’ may be the single most important buying criteria to minimize change-related revenue loss, business disruption, stock price declines and the lost business opportunities.”

Get the Truth!

If you want to discover what your ERP vendors won’t be telling you, then you need to read the full IDC report: “Modifying and Maintaining ERP Systems: The High Cost of Business Disruption