CFOs Satisfied With Their ERP Implementation

In our consulting work on enterprise information systems, we often hear that ERP fails to meet a company's needs, holds back its growth, and so on. We wanted to find out how accurately this reflects the views of company leadership.

So we ran a survey, reaching out to CFOs at companies with more than 100 employees and revenue above CZK 100 million, and asked for their views. You can see the results for yourself.

(How) Do ERP Systems Actually Deliver?

Most ERP systems have something in common: they went live with realistic performance requirements, and the vast majority are used correctly. And yet far too many companies claim to be dissatisfied with them.

We decided to map out and pin down this "dissatisfaction" phenomenon more precisely through a survey. We asked Innovative Business s.r.o. to partner with us – a firm that has already run dozens of similar surveys.

What Exactly Does the Term ERP System Cover?

ERP stands for Enterprise Resource Planning. Broadly speaking, ERP refers to the automation and integration of a company's core activities, helping it focus on efficiency and a more straightforward path to success.

An ERP system automates and integrates key business processes, such as receiving customer orders, planning operations, tracking inventory, and managing financial data. ERP systems can dramatically improve the efficiency of any organization by managing its business resources effectively.

A Proper Rollout Is the Main Driver of Satisfaction

For a company, implementation is a complex project carrying a range of risks that directly affect the business.

A quality implementation has a decisive impact on satisfaction or dissatisfaction with an ERP system.

Depending on the size of the company, it can take anywhere from months to years, and it brings a wide range of major changes across every area of the company's day-to-day life.

A quality implementation has a decisive impact on satisfaction or dissatisfaction with the ERP system. The implementation partner becomes a long-term ally whose work directly affects the outcome of the project – and often the client's business results as well.

The Survey Reveals Who Is Actually (Dis)Satisfied – and With What

We went straight to the people best qualified to answer: CFOs at randomly selected companies with more than 100 employees and revenue above CZK 100 million. Of the 218 contacts approached, 112 responded.

Our survey included questions about satisfaction with the current ERP system, its implementation, and the costs of deploying and running it. We also asked how well the system lets them respond flexibly to customer demands. Finally, we asked about their plans for the future.

The answers ended up painting a picture that was the exact opposite of our initial impression.

Most CFOs are more or less satisfied with their ERP system. Satisfaction is highest among companies that have been using their system for more than 5 years, and the average grade given to the implementation partner is a 2 (on the Czech school scale, where 1 is best – roughly a B).

The systems rated were mainly Microsoft Dynamics AX and SAP ERP solutions, along with various other proprietary systems. The vast majority of the companies surveyed had deployed their ERP before 2007, meaning the system has had a direct impact on their business results for more than five years. It's fair to assume that if that impact had been negative, the
system – or the way it's used – would already have been changed.

Most of the companies surveyed have been using their ERP system for more than five years. If it had a negative impact, replacing it would be all but certain.

You can see the specific survey results in the overview below.

Survey Results

Which business information system do you use?

VendorCountMicrosoft17SAP13proprietary (in-house build)9Helios8ABRA6K26Eso 93other39prefer not to say4

When was it implemented?

YearCount2014 – 201582012 – 201342010 – 2012102008 – 2009102007 and earlier51don't know3prefer not to say3

On a school-grade scale, how would you rate your external ERP implementer's work?

average grade1.96

Does the business information system you use meet your needs?

meets our needs72is adequate29is not adequate0does not meet our needs3prefer not to say1

Does the system let you respond flexibly to customer requests?

yes38mostly yes28mostly no2don't know2

What is your ERP vendor's average hourly rate?

over CZK 3,000 per hour1CZK 2,000 to 3,000 per hour.6CZK 1,500 to 2,000 per hour.2CZK 1,000 to 1,500 per hour6under CZK 1,000 per hour1

What was your total investment in your ERP?

up to CZK 1 million10CZK 1 million to 2.5 million7CZK 2.5 million to 5 million5CZK 5 million to 10 million4over CZK 10 million6don't know27prefer not to say4

How much do you invest in ERP maintenance every year?

up to CZK 0.5 million35CZK 0.5 million to 1 million8CZK 1 million to 2 million1over CZK 2 million4don't know12prefer not to say5

Are you planning to invest in developing your ERP system this year?

yes61no2don't know2prefer not to say1

How much will this year's investment in developing your ERP system be?

up to CZK 0.5 million.33CZK 0.5 million to 1 million8CZK 1 million to 2 million1over CZK 2 million4don't know8prefer not to say3

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

yes8maybe3no90don't know8prefer not to say1

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