The High Cost of Change for ERP

September 2nd, 2010ERP 1 Comment

June 22, 2010 from CFO Research – “A New Report from CFO Research and Agresso, based on a survey of 157 senior financial executives, provides critical benchmarks for managing change in Enterprise Resource Planning (ERP) systems…”

180 View – I recommend this article which does show that organizations are spending big bucks on ERP even after the implementation. The biggest problem appears to be related to making customizations and the costs to re-implement the customizations when upgrades are received. Solutions to the problem are 1) Make sure that both current and potential future requirements are considered when selecting a system, 2) Select a system that allows for changes outside of source code. 3) Don’t customize.

One Response to “The High Cost of Change for ERP”

  1. September 13th, 2010 at 9:15 am
    Food Decision Software Inc. Says:

    I know that this paper is written for mid to large organizations and I am sure that the information is accurate as written. However, when papers are written that discuss the high costs of implementing ERP solutions, small businesses are rarely considered. In the Food Industry many if not most companies would be considered small to medium sized companies. As a Food Industry specific ERP solution provider, we build functionality into our product that can be used by those in the food industry. My suggestion in trying to keep costs down be it a small or large organization is to find an ERP solution that has been developed for your industry. ERP solutions are not cheap to implement but the benefits to all sized companies that have one will pay off in the long run.

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