Boston, Mass., March 21 A new study by The Boston Consulting Group (BCG) reveals that only one out of every three enterprise application initiatives is successful. After surveying 100 executives at leading companies and analyzing data on the outcomes of more than 100 large-scale enterprise initiatives, BCG found that the outcome of very few of these initiatives could be considered positive, when analyzed in terms of value creation, cost effectiveness, tangible financial impact and goal attainment.
Enterprise applications are suites of software modules that integrate a company's various operations, both internally and externally. Providers and implementers of enterprise computing applications represent a major industry that is expected to grow to $125 billion by 2001. According to BCG, companies are relying too heavily on this industry for initiative success.
``Enterprise computing applications will continue to be vitally important. But the success of an initiative depends on whether the company adapting the applications thinks hard about its objectives, sticks to them and manages the process closely,'' said Harold Sirkin, head of BCG's Information Technology practice and co-author of the study. In the study, ``Getting Value from Enterprise Initiatives,'' BCG analyzed a full range of enterprise initiatives, including enterprise resource planning (ERP), supply chain management (SCM), customer relationship management (CRM) and e-commerce.
For more information about the study and its findings, please visit www.bcg.com.
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