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The root cause of this problem lies with the planners. Positive thinking and determination to act on reality is what help ERP solution yield a desired profit and good return on investment. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this "improvement."
ERPs take away the old way of working and people are not ready to give away the old system even though they understand it is not bringing the desired result. When they are asked to give up what they know and what they used to, you often get resistance to using a new software system.
ERPs also threaten the fragile balance of power and control. The old system allows departments and some individuals to control the type of information that gets out - and control the way data gets disseminated. The new system keeps check on all that and a proper working environment has been created in the organization.
If any organization spending millions on an ERP solution with no success, then they must understand that the technical problems they faced were minor compared to the human reactions against these changes
Initially Sometime ROI on ERP is low due to the slow user acceptance and high investment on the brand value of ERP. ERP provider always charge high brand value than the services they provide they see their product help the organization in long run.
There is no doubt there will be an increase in efficiency while using the ERP, if the user has a proper training and hand on it.
A ERP itself a bundle of SOP force user to follow, initially user get difficulty to accept but gradually user start understand how its helps and informative.
My conclusion and in my experience ROI of ERP is high in long run
Mainly because ERP ROI is hard to calculate mainly because business process costs are rarely calculated which defoms the definition of the cost of the current state and accordingly there is nothing to compare with. Another reason is not being able to assess the return on most of the new functions offered by the ERP like nstant reporting and analysis. A third possible reason is having other business performance improvements efforts going on at the same time as the ERP implementation which makes difficult to define the source of the improvement ar that share of each effort in it.
