Many organizations concerned with EBITDA are wary of ERP – enterprise software. These support business transaction processing and planning with good reason. Many ERP projects fail to deliver positive value or fail altogether. Poor planning, poor resource management, and a lack of risk awareness are the main causes of ERP installation failure. This failure can occur on a number of levels, including crucial business operations that can overwhelm a technical team’s capacity to successfully manage risks and change.
At Logan Consulting, we believe ERP can be used as a set of tools to support the business to facilitate EBITDA growth using a Business Value Approach. In order for ERP to be an EBITDA enhancer:
- the specific ERP project must be properly planned
- executed with business processes and EBITDA as the priority drivers.
- Easier said than done.