Report: Are you getting enough out of ERP?

As a followup to our invitation to participate in Enterprise Solution Research earlier this year, we thought we'd share a few snippets from the results and offer the opportunity to obtain the final report from Cindy Jutras, president of Mint Jutras.

ENOUGH TRASH TALKING. LOOK TO OUTCOMES.

It seems Enterprise Resource Planning (ERP) has always gotten a bad rap. Everywhere we look we see stories about overspending and failed implementations. Every few years headlines emerge claiming “ERP is Dead!” In fact we saw a resurgence of this proclamation last year, implying you should throw out your ERP and replace it with something else... something different. But if you define it as Mint Jutras does, ERP will never die. It can’t. You need it to run your business.

While it is easy to blame ERP for budget over-runs and failed implementations, calling it something else isn’t going to solve the problem. You need to take responsibility for its success or failure. ERP has come a very long way since its inception, adding more and more features and functions, modernizing technology, improving user experiences. Yet many achieve their first “go live” milestone and stop. Some are stuck in the past. And others simply don’t ask enough of their ERP.

Are you focusing on outcomes? If you aren’t getting the most out of your ERP, what should you do about it? Can your current solution be fixed, or do you need a new one?

DON’T GET HUNG UP ON WHAT YOU CALL IT

While the acronym itself can be somewhat misleading, Mint Jutras views “ERP” as a convenient label for the software that forms the operational and transactional system of record of your business. While industry observers and even some of the solution providers get hung up on the term, it is clear that most of the participants in our 2016 Mint Jutras Enterprise Solution Study have their own perceptions.

Mint Jutras Definition of ERP

ERP is an integrated suite of modules that provides the operational and transactional system of record of your business. Because this system of record varies across different types of businesses, the components required by an individual business will also vary. Some ERP solutions address the needs of selected industries, while others satisfy the needs of a broad spectrum. Regardless of target market, today most ERP solutions extend beyond these minimum requirements.

Data Source

In this report, Mint Jutras references data collected from its 2016 Enterprise Solution Study, investigating goals, challenges and status and also benchmarked performance of software used to run a business. Over 400-plus responses have been collected from companies across a broad range of industries. This sample included responses from companies of all sizes, ranging from very small to very large enterprises.

WHAT ARE THE GOALS OF ERP?

• 35% use primarily a finance and accounting solution
• 16% have an integrated accounting solution supplemented with other operational apps
• 47% run what we would call an ERP
• 80% of participants selected a solution that is clearly what we call ERP

ARE YOU READY FOR THE DIGITAL ECONOMY?

So that begs the question: How prepared are you for the digital economy? A third (32%) of our survey respondents this year say they are “getting close” to being fully prepared for the digital economy, and another 30% say, “Bring it on! We’re ready!”

Digital Transactions

Percentage of companies with a complete digital system of record, requiring no manual intervention except for approvals or exceptions:

• 21% B2B Customer orders
• 20% B2C commerce
• 13% Direct PO’s
• 14% Indirect PO’s
• 13% Customer contracts
• 20% Payments
• 11% T&E Management
• 13% HR records including tax & benefits

And there's more, much more, to this research report, including recommendations if you're considering replacing an ERP system or implementing a true ERP solution for the first time. This quote says it all:

If you have been coasting along or perhaps frustrated that your ERP solution has not produced all the results you had originally hoped for, don’t let the ERP trash talk get you down. For every failed ERP implementation, we can point to one that has had spectacular success.

About the author: Cindy Jutras is a widely recognized expert in analyzing the impact of enterprise applications on business performance. Utilizing over 40 years of corporate experience and specific expertise in manufacturing, supply chain, customer service and business performance management, Cindy has spent the past 10 years benchmarking the performance of software solutions in the context of the business benefits of technology. In 2011 Cindy founded Mint Jutras LLC (www.mintjutras.com), specializing in analyzing and communicating the business value enterprise applications bring to the enterprise.