Oracle ERP projects have longest unexpected delays, survey finds
Posted: Jul 25, 2012
It is "distressingly common" to see ERP (enterprise resource planning) projects involving Oracle, SAP and Microsoft Dynamics software end up taking longer than customers anticipated, according to a new survey.
The survey released this week by Panorama Consulting, a Denver-area company that provides ERP implementation and software selection services, is based on 2,000 responses from 61 countries, which were collected between February 2006 and May of this year.
About 40 percent were in North America, company president Eric Kimberling said during a webinar on Thursday. Some 61 percent of respondents said their projects went over schedule, while 28 percent finished on time and 11 percent completed the project sooner than expected, according to the report.
The actual ERP software being used is largely not to blame for problem projects, according to the survey data. Just four percent of respondents cited "vendor functionality issues" as a reason for project delays, although "technical issues" drew 14 percent.
A change in the project's initial scope was the top reason for slowdowns, named by 29 percent of survey respondents. "Organisational issues" came next with 20 percent, followed by "data issues" and "resource constraints" with 17 percent apiece. A big focus of ERP projects is their promise of a return on a company's investment in the software. But Panorama's survey found that nearly a third of respondents had yet to realise any financial rewards from their projects, and another 30 percent said it took at least three years to start seeing any "payback."
Dynamics led the pack in terms of overall implementation times, averaging 13 months to SAP's 17 months and Oracle's 18 months, according to the survey.