The initial investment in an ERP system is only one part of the overall investment made during the life-time of the ERP system. Much of the total life-time costs of an ERP system is made later in the life-cycle, such as upgrades, customisations and user training. It is therefore of vital importance to consider how to optimise this ongoing spending and keep improving the value derived from it.
Maximising benefits and minimising costs
The main purpose of this report is to map out major value and cost aspects relating to ERP systems in large Nordic companies. This entails looking at such areas as how much is spent on ERP in relation to total IT costs, satisfaction with costs and strategies for improving the benefits derived from the ERP system.
Optimising ERP Value & Spending is designed to:
- Provide information on current and projected costs ratios for ERP systems in Nordic companies, taking into consideration the scope of the ERP implementation.
- Present the allocation of total ERP spending on IT resources such as software and staff.
- Report on what ERP areas Nordic companies perceives to have the biggest potential for cost-savings as well as how large this savings potential is.
- Present the priorities of Nordic companies by showing what their ERP objectives are and how they rank the importance of different ERP attributes such as user friendliness and ability to integrate with third-party systems.
- Show the companies’ satisfaction as a whole with their ERP systems and with various aspects such as total costs and contribution to company revenue
- Provide information on Nordic companies’ satisfaction with various cost factors regarding their ERP system such as implementation, integration and support costs.
- Show the focus of the ERP investments by looking at the allocation of ERP spending on various investment objectives such as increasing business revenue.
- Provide information on what Nordic companies regard as the main challenges to ERP success as well as the steps that they have taken recently and will take in the near future to improve how their ERP systems meet company needs.
The report is written based on mainly the needs and requirements of the IT management of large Nordic companies. The target group of the report is primarily: CIO/IT managers, ERP system owners, CFOs, Controllers, IT strategists, Consultants and CEOs. The report will however also be interesting for vendors of IT products and services in order to better understand their customers.
- Large Nordic companies’ spending on ERP
- Allocation of IT spending and investments
- Perceived cost-savings potential for ERP systems
- Satisfaction with ERP benefits
- Steps taken to improve ERP value
Answering your key questions:
- How much do Nordic companies spend on their ERP systems?
- Where are ERP cost-savings most likely to exist according to Nordic companies?
- On what ERP objective do the companies put most priority and how successful reaching it are they?
- Where do Nordic companies focus their ERP investments? SHOW LESS READ MORE >
1. ERP in the Nordics
- ERP adoption
- Selecting an ERP system
- Type of ERP system
- Replacement plans
2. ERP spending
- ERP ownership costs
- Extent of ERP functionality
- ERP cost ratios
- ERP spending allocation
- Effect of system type on spending
3. Cost optimisation
- Strategies for reducing ERP costs
- Cost-saving potential
- Factors for keeping ERP costs down
- Satisfaction with ERP cost factors
- Effect of system type on satisfaction
4. ERP priorities
- Most important objective
- Drivers of satisfaction 33
- Most important attributes
5. ERP satisfaction
- Satisfaction with ERP
- Satisfaction with objectives
- Satisfaction with ERP attributes
- Effect of system type on satisfaction
- Effect of spending on satisfaction
6. Investment objectives
7. Improving ERP value
- Evaluating ERP value
- Optimising value of ERP system
- Challenges to ERP success
- Steps taken to improve ERP system
- Planned steps to improve ERP system
This report is based on two surveys carried out by Waagstein Research. The main survey was conducted in the second quarter of 2008 among 54 large (+300 employees) companies in Denmark, Finland, Norway and Sweden. This is complemented by information gained from a survey carried out in the fourth quarter of 2007 among 90 large Nordic companies.
The research data is presented and analysed broken down by industry: Trade, Services and Manufacturing.