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ERP programme assurance

In the current economic downturn it is critical that your ERP (SAP, Oracle, PeopleSoft) programmes provide return on investment and deliver maximum business benefits.

What is an ERP?

ERP stands for Enterprise Resource Planning and it is an application system. ERP originally derived from manufacturing resource planning (MRP II) which followed materials requirement planning (MRP). It is believed that ERP as a term was introduced by research and analysis firm Gartner in 1990. ERP referred to how large organisations planned to use their company-wide resources. Originally, ERP applications were largely used by manufacturing type industrial companies. However, in the past couple of decades the popularity of ERP spread to other industries including public sector. Now almost every industry sector uses ERP applications and is used by any type of organisation – large or small.

Why do we need Programme Assurance for our ERP projects?

In general, ERP implementation programmes affect or have an impact on the entire organisation - operational and non-operational functions. Organisations invest substantial amount in implementing ERP applications and in our experience in ERP projects, we have noted that:

  • a good 10% to 15% of the programme cost is wasted due to unwanted delays, too much customisation, underutilised resources, etc;
  • a significant number of ERP projects :
  • exceed the original budget by 10% or over;
  • do not complete within the agreed timeframe; and/or
  • do not deliver the stated business benefits.

One of the reasons for the above is because these ERP projects fail to include a comprehensive ERP Programme Assurance to ensure alignment of the programme with the business strategy and have proper checks and balances in place during the ERP implementation programme. Some companies go part-way and have a pre-implementation review and/or post-implementation review, but these can never be as effective as having a Programme Assurance covering the entire life-cycle of the ERP programme.

Please refer to the attached ERP Programme Assurance brochure for further details.

Related content

ERP Programme Assurance brochure

Mazars offers comprehensive ERP Programme Assurance that will enable alignment of the programme with your business strategy.

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