Report suggests a mismatch between expectations and reality gives ERP a bad name in public sector IT projects
Advanced advises that the public sector needs to keep an open mind when choosing IT systems
28 January 2013 - A mismatch between expectations and reality in public sector IT projects is to blame for giving enterprise resource planning (ERP) systems a bad name according to a SourceforConsulting report commissioned by Advanced Business Solutions (Public Sector & Enterprise Division). The report involved a survey of 100 IT and finance managers that use ERP systems within the UK public sector and the results were supported by interviews with 13 senior UK management and technology consultants.
The findings highlight that there is a mismatch between what pubic sector organisations expect from ERP systems and what is actually delivered, with 63% of the survey respondents admitting that their chosen ERP system didn’t meet their expectations in at least one area.
Over a third of respondents spent more than they had expected on the implementation of their ERP system and 20% were disappointed by how the system met their needs without customisation. Just one in five of those surveyed would go through a similar ERP implementation again.
The report suggests that the negative feedback about public sector ERP implementations is largely due to a lack of clear operational objectives and a misguided belief that an ERP system is the answer to a public body’s issues without considering other (potentially more suitable) IT options.
Dean Dickinson, Managing Director of Advanced Business Solutions (Public Sector & Enterprise Division), says, “It is worrying that so many public sector ERP implementations are being viewed negatively, although it does not come as a big surprise.”
“An ERP system is often viewed by public sector professionals as the only solution to meet their IT needs, which is a myth. The result is that many ERP projects are implemented with insufficient consideration for the desired outcomes. It’s therefore key for the public sector to start with an open mind when choosing an IT system, as a large-scale ERP implementation could simply be unsuitable and far too costly for their needs.”
Iain Gravestock, Public Sector Technology Consulting Business Lead from consultancy firm, KPMG, agrees: “My first piece of advice to organisations saying that they want to buy ERP is to take a step back. Instead, they need to start with understanding what it is they want to achieve. What value will be delivered – defined both qualitatively and quantitatively? This is crucial. Then the organisation needs to consider all the options for meeting their objectives.”
The full report – ‘ERP in the public sector: Full steam ahead or the end of the line?’ can be viewed here: http://www.advancedcomputersoftware.com/abs/resources/regform.php?ID=969
To find out more about Advanced’s ‘ERP in the Public Sector’ webinar, view
Notes to Editor
About Advanced Business Solutions www.advancedcomputersoftware.com/abs
Advanced Business Solutions (Advanced) provides leading integrated business applications and services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies whilst continually improving corporate performance. Advanced prides itself on getting close to its customers by understanding their businesses and responding to their evolving needs.
Advanced’s software systems comprise core accounting/financial management, procurement, supply chain management, human resource and payroll systems, integrated with a range of collaborative, document management and business intelligence solutions to extend the value and effectiveness of the finance, human resource and payroll departments. Management information systems for school and academies are also provided through Advanced’s subsidiary, Advanced Learning. All solutions can be delivered as a managed or bureau service.
Customers are from both the public and private sectors and include Companies House, Newcastle City Council, WH Smith, Royal Bank of Scotland, Aer Lingus, National Express Group, DFS, RSPB and Great Ormond Street Hospital for Children NHS Trust.
Advanced Business Solutions is a division of Advanced Computer Software Group plc, a leading supplier of software and IT services to the health, care and business services sectors.
Sourceforconsulting.com is a leading provider of information about the market for management consulting. Set up in 2007 and based in London, Source serves both consulting firms and their clients with expert analysis, research and reporting. We draw not only on our extensive in-house experience, but also on the breadth of our relationships with both suppliers and buyers. All of our work is underpinned by our core values of intelligence, integrity, efficiency and transparency.
Sourceforconsulting.com is owned by Source Information Services Ltd, an independent company, which was founded by Fiona Czerniawska and Joy Burnford. Fiona is one of the world's leading experts on the consulting industry. She has written numerous books on the industry including: The Intelligent Client and The Economist books, Business Consulting: A Guide to How it Works and How to Make it Work and Buying Professional Services. Joy Burnford was Marketing and Operations Director at the UK Management Consultancies Association between 2003 and 2010, and prior to that worked for PA Consulting Group and has extensive experience of marketing consulting services.
Liz Ebbrell and Angela Mycock, Advanced Computer Software Group plc
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