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12 Mind Bending ERP Statistics

        posted by , September 11, 2011

ERP software has many benefits for mature organizations ready to take on the implementation challenge. However, it is important to note that ERP projects (like any complex endeavour) are fraught with peril:

1. 61.1% of ERP implementations take longer than expected.1

2. 21% of ERP implementations fail to deliver significant business benefits.2

3. 40% of ERP implementations cause major operational disruptions after go-live.3

4. Global ERP sales are expected to exceed $45.5bn in 2011.4

5. 1 out of every 10 software dollars is spent on ERP.5

6. Hersey's failed to deliver $100 million dollars in candy for Halloween 1999 after a troubled ERP implementation caused serious operational problems.6

7. Large ERP implementations commonly cost in excess of $100 million dollars.

8. In 2008, Waste Management sued SAP for more than $100M in expenses related to a failed ERP implementation.7

9. 35% of ERP projects go with a big-bang implementation.8

10. 15% of ERP projects perform no customization. 9

11. 74.1% of ERP projects exceed budget.10

12. The top 5 ERP vendors have more than 70% market share.11

12010 Panorama ERP study 22010 Panorama ERP study 32010 Panorama ERP study 4Forrester:The State Of ERP In 2011 5DataMonitor: The Size of the Worldwide Software Industry in 2008 6CIO Magazine, 15 nov 2002, p22 7IT World March 27, 2008 82010 Panorama ERP study 2010 92010 Panorama ERP study102010 Panorama ERP study 11 Forrester, April 2, 2004, ERP Applications — Market Maturity, Consolidation, and The Next Generation

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