Satisfied CFOs with system implementation

In consulting work on enterprise information systems we often hear that ERP does not meet the company’s requirements, holds back growth, and similar. We wanted to know how much these claims reflect executive views.

So we prepared a survey in which we approached CFOs of companies with more than 100 employees and turnover over CZK 100 million and asked for their views. You can review the survey results yourself.

Do ERP systems in companies fulfill their role?

Most ERP systems have something in common: they were put into operation with realistic performance requirements and are used correctly in the vast majority of cases. Yet far too many companies claim they are dissatisfied.

We decided to map and specify the “dissatisfaction” phenomenon through a survey. We partnered with Innovative Business s.r.o.—a partner that has prepared dozens of similar surveys.

What exactly does the term ERP system include?

ERP stands for Enterprise Resource Planning. Generally speaking, ERP refers to automating and integrating core company activities to help them focus on efficiency and streamline the path to success.

An ERP system automates and integrates key business processes such as receiving customer orders, operations planning, inventory tracking, and financial data. ERP systems can deliver major efficiency gains to any organization by effectively managing enterprise resources.

Proper deployment is the main driver of satisfaction

Implementation is a complex project with many risks that directly affect the company’s business.

Quality implementation has a crucial impact on satisfaction or dissatisfaction with the ERP system.

Depending on company size it can take months to years and brings wide-ranging changes across daily operations.

Quality implementation strongly affects satisfaction or dissatisfaction with the ERP system. The implementer becomes a long-term partner whose work directly influences the project outcome and often the client’s business results.

The survey showed who is (dis)satisfied and with what

We asked the most relevant people: CFOs of randomly selected companies with more than 100 employees and turnover over CZK 100 million. Out of 218 contacts, 112 responded.

We included questions about satisfaction with the current ERP, implementation and costs of deployment and operation. We also asked how the system enables them to respond flexibly to customer needs. Finally we asked about future plans.

The answers contradicted our initial impression.

Most CFOs are more or less satisfied with their ERP system. Satisfaction prevails among firms that have used the system for more than five years, and the average school-style grade for the implementer is a “2”.

The systems assessed included mainly ERP Microsoft Dynamics AX and SAP, as well as other proprietary solutions. The vast majority deployed ERP before 2007, so the system has influenced their business results for more than five years. It is reasonable to assume that if the impact were negative, the system or its use would already have changed.

Most companies surveyed have used their ERP for more than five years. If ERP had a negative impact, replacement would be certain.

See the specific survey results in the overview below.

Survey results

Which enterprise information system do you use?

VendorCountMicrosoft17SAP13proprietary (in-house)9Helios8ABRA6K26Eso 93other39won’t say4

When did implementation take place?

YearCount2014–201582012–201342010–2012102008–2009102007 and earlier51don’t know3won’t say3

Grade your external ERP implementer as in school.

average grade1.96

Does your enterprise information system suit you?

suits us72is sufficient29is not sufficient0does not suit us3won’t say1

Does the system let you respond flexibly to customer requirements?

yes38mostly yes28mostly no2don’t know2

What is your ERP vendor’s average hourly rate?

over CZK 3,000 per hour1CZK 2,000–3,000 per hour6CZK 1,500–2,000 per hour2CZK 1,000–1,500 per hour6up to CZK 1,000 per hour1

What was the total investment in your ERP?

up to CZK 1 mil.10CZK 1–2.5 mil.7CZK 2.5–5 mil.5CZK 5–10 mil.4over CZK 10 mil.6don’t know27won’t say4

How much do you invest annually in ERP maintenance?

up to CZK 0.5 mil.35CZK 0.5–1 mil.8CZK 1–2 mil.1over CZK 2 mil.4don’t know12won’t say5

Do you plan to invest in ERP development this year?

yes61no2don’t know2won’t say1

What will this year’s ERP development investment be?

up to CZK 0.5 mil.33CZK 0.5–1 mil.8CZK 1–2 mil.1over CZK 2 mil.4don’t know8won’t say3

Are you planning to change your ERP system in the future?

yes8maybe3no90don’t know8won’t say1

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