If Most ERP Implementations Don’t Meet Expectations, What’s Next? (Hint: Think Mobile)


Nearly every hospital in America has implemented an Enterprise Resource Planning (ERP) system, yet hospital staff members still tell us they have stock-outs, overstocking and waste due to expiring supplies. Plus, their labor expenses are high because of cumbersome manual processes.  Why the gap?
At their core, ERP systems are designed to meet the planning and reporting needs of finance and human resources.  And while this legacy technology promises to deliver supply chain savings, the reality of savings often doesn’t materialize.  According to a recent report on ERP implementations by Panorama Consulting Solutions, “approximately 59% of projects have exceeded their planned budgets, 53% of projects have exceeded their planned durations and 56% of organizations have received less than 50% of the measurable benefits they anticipated from their ERP software initiatives.”
With results that don’t meet expectations, ERP system vendors are working to redesign their offerings to meet the needs of today’s health systems.  Yet hospitals may be wary – with the potential for years of development, months or years of implementation time, high initial investment costs and ongoing fees, high consulting costs during the implementation and beyond, and a  poor track record of return on investment (ROI), ERP systems may or may not be able to meet the challenges of today’s hospital supply chain.
The answer may be in adding new cloud- and mobile-technology to your existing ERP.
Recently, Gartner, Inc. reviewed the top 10 technology trends for organizations in 2015, with “the potential for the most significant impact on an organization in the next three years.”  On the list were both cloud-based technology and the proliferation of mobile devices. Gartner predicts “the convergence of cloud and mobile computing will continue to promote the growth of centrally coordinated applications that can be delivered to any device. Cloud is the new style of elastically scalable, self-service computing, and both internal applications and external applications will be built on this new style," said David Cearley, vice president & Gartner fellow. "While network and bandwidth costs may continue to favor apps that use the intelligence and storage of the client device effectively, coordination and management will be based in the cloud."
Additionally with mobile devices continuing to proliferate, Gartner predicts an increased emphasis on serving the needs of the mobile user in diverse contexts and environments. "Phones and wearable devices are now part of an expanded computing environment that includes such things as consumer electronics and connected screens in the workplace and public space," said Mr. Cearley. "Increasingly, it's the overall environment that will need to adapt to the requirements of the mobile user. This will continue to raise significant management challenges for IT organizations as they lose control of user endpoint devices. It will also require increased attention to user experience design."
Want to read more on this topic?  Take a look at our new white paper PDF below on using mobile in healthcare.