You’re Not Tiger Woods!

March 26, 2008 from AMR Research – “What do software and golf have in common? A lot, actually…Companies can buy all the enterprise software they want, but unless their companies are performing well to begin with, as Tiger Woods is, that software isn’t going to help a whole lot. To most companies, these investments are a cost without an ROI...”

180 View – The article does make a few good points as to why ERP systems fail to deliver ROI and is interesting. However, it’s not clear whether the conclusions drawn can be generalized based on the surveys conducted. Were the surveys for organizations spending millions of dollars or done 5 years ago or for companies with complex processes not found in a typical survey?

Another problem is the suggestion to improve the operational efficiency of the business processes before purchasing new software otherwise you will just have an automated mess. The implication is that organizations should re-engineer their business processes before implementing a new system. This is bad advice for most companies. You could develop the best processes and find that the costs of their implementation would be prohibitively expensive. Why not leverage the business processes already implemented by the ERP vendors than start from scratch? Why re-invent the wheel every time? There could be a few unique processes that make an organization successful, which may require some new processes, but there is a lot of similarity between companies in the basics.