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Aberdeen report about ERP systems in Professional Service Organizations

Aberdeen report about ERP systems in Professional Service Organizations

This report summarizes the results of a survey of 73 Professional Services firms.  The paper outlines the differences in performance between best-in-class users of ERP (described as “Leaders” in the report) and those that either don’t use a true ERP package or don’t use it well (described as “Followers” in the report).
 
 Some interesting highlights and quotes from the report: 
 
•         “Still, Aberdeen’s 2011 survey of 73 professional services firms found that only 64% are currently using ERP.  Those that currently use ERP are able to more effectively cut costs, manage projects, and staff accordingly.  ERP is quickly becoming a key differentiator for leading professional services firms.  When people are the product, the visibility that ERP provides leads to more consistent services and satisfied customers.”
 
•         Leaders experienced 19% growth in operating margins over the last two years; Followers experienced only 4% growth in gross margins
 
•         There are large differences in the performance of companies that don’t use ERP at all compared to those users of ERP that only do an “Average” job of using it.  For example, “Average” ERP users close the monthly books over 20% faster than non ERP users.  “Average” ERP users have 20% higher growth in operating margins than those that don’t use it all.
 
•         “Leaders are 64% more likely than followers to be able to assess demand, helping them to ensure the highest possible revenue streams.”
 
•         “63% of leaders can drill down to transactions that form the fiscal and operational audit trail.”        
 
•         “Leaders are 77% more likely than followers to have implemented modules for job or project costing.” 
 
•         “Functionality” was identified as the most important criteria when choosing ERP.

 

You can download the full text of the report here


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