Realizing value from packaged software is determined by two key factors: software quality and the implementation approach used. In this book we have focused on the implementation approach. Enterprise Resource Planning (ERP) makes up the majority of the packaged software industry today. Let's revisit a comment made about ERP implementations:
Nearly 90% of ERP implementations are late or over budget and ERP implementation success rate is only about 33% 1
What are the reasons for such dismal performance? Some of it has to do with software quality and limitations, but the majority of the problems have to do with the implementation approach: an implementation approach that focused more on building custom solutions than maximizing the advantages of COTS software. The result was unrealized business results along with a healthy dose of cynicism.