Why some people think ROI on ERP is low

The root cause of this problem lies with the planners.(http://www.eresourceerp.com/Why-some-people-think-ROI-on-ERP-is-low.html) Positive thinking and determination to act on reality is what help ERP solution yield a desired profit and good return on investment. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this “improvement.”

ERPs take away the old way of working and people are not ready to give away the old system even though they understand it is not bringing the desired result. When they are asked to give up what they know and what they used to, you often get resistance to using a new software system.

ERPs also threaten the fragile balance of power and control. The old system allows departments and some individuals to control the type of information that gets out – and control the way data gets disseminated. The new system keeps check on all that and a proper working environment has been created in the organization.

If any organization spending millions on an ERP solution with no success, then they must understand that the technical problems they faced were minor compared to the human reactions against these changes.

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