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Customization of ERP – a two-edged sword

24.03.11, 16:39, Msk

Though the companies during 2010 were forced to continue policy of reduction of budgets of ERP projects and their terms, they received more business effects of them. According to Panorama Consulting Group, in 2010 the average cost of implementation of ERP was reduced from 6.2 to 5.5 million dollars, and an average term of the project – from 18 to 14 months. At the same time the share of the companies in general satisfied with the project (the implemented more than a half of the expected business benefits) grew from 33% to 42%. At the same time the number of frankly unsuccessful projects using which it was succeeded to reach less than a third of tasks was considerably reduced.

It should be noted that toughening of time and financial frames of projects was not slow to affect such indicator as observance of their parameters. In 61% of projects deadlines, and in 74% - budgets were skirted.[1]

As analysts note, growth of number of successful projects cannot but please, however bad management of project expectations should guard. The companies demanding good results without selection of necessary resources even at high-quality implementation risk to receive weak perception of a system by users.

Besides, the research shows growth of desire of the companies to be convinced that the selected product corresponds to their requirements and processes. More and more companies carry out pilot projects and perform serious customization of the implemented systems. In 2010 the share of the companies implementing ERP in an initial type did not exceed 15%, having cut in comparison with 2009 by half. Obviously, Chief information officers believe that they are capable to keep the arising risks under control and refuse implementation of "boxed" versions of systems. Customization becomes the commonly accepted rule, and the companies should pay to this process considerable attention to avoid inflating of budgets, growth of the state and failure to meet time constraints of projects.

The share of costs for IT in the Russian companies is rather small therefore in safe time to fluctuations of the IT budget significance was not attached – they not strongly influenced the general indicators of the company. But when began to consider each kopek, it became clear that a part of money can be not spent, and began to pay much more attention to exceeding of budgets.