When ERP gains fail to materialise
A Public Sector case study
When a Canadian airport authority invested millions in a sophisticated Enterprise Resource Planning (ERP) system a few years ago, the expectation was that the anticipated benefits - improved processes, increased productivity, and greater efficiencies - would more than outweigh the significant cost.
Very quickly it was clear that the business case predicated improvements hadn’t materialised. Collectables were slow, accounts payable were behind schedule, and economies of scale weren’t accruing. Faced with three choices - accept the status quo, upgrade the original implementation or implement the latest version of the system - the authority chose to start again and reconfigure.
The attached case study by Deloitte & Touche LLP - Canada's Omar Tucci and Anna Pesme describes the challenges faced in successfully re-implementing the ERP system: integration of unique transaction streams, multiple vendors and a radically compressed timeframe. They outline the process undertaken, and how implementation risk was avoided the second time around.
For more details on this ERP re-implementation click here.