The ERP mess we're in

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The operation was a success...

An episode of Yes, Minister posited a hospital that had been built, equipped, fully staffed, and maintained. But because of jurisdictional problems no patients had been admitted.

The hospital received awards for the quality of its operation, and administrators submitted a request for additional monies because of the growing costs of doing what they were doing.

Without patients.


That plot line came to mind after reading these paragraphs:

"This indicates that the use of ERP systems actually causes performance gains rather than strong performance driving the purchase of ERP. In contrast, for SCM and CRM, we find that performance is correlated with both purchase and go-live events.
...
Our results demonstrate that ERP adoption strongly influences operational performance (inventory turnover, asset utilization, collection efficiency) and labor productivity but has a negligible impact on measures of financial return or profitability."

Another comparison, considering the cost of the investment in ERP (and SCM and CRM):

When congratulated on a costly victory against the Romans, King Pyrrhus observed that after another such victory he'd have to surrender.

Posted by: Anton Philidor   Posted on: 08/15/07 You are currently: a Guest | Members login | Terms of Use

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