A paper from Ernst & Young warns IT managers about the risks associated with implementing Enterprise Systems Management (ESM) solutions.
Faith Page, a partner with the technology and security risk services division at Ernst & Young, said there are examples of companies which either had not completed ESM implementations, or which had not gained the expected benefits.
Page advises IT managers to take a hard look at the business benefits when planning ESM implementations.
"In the worst case scenario budget and timeframe blowouts, combined with unwieldly solutions, mean [that an] ESM implementation doesn't even get off the ground," she said.
According to Page, significant costs included customising the project to meet a company's business objectives and IT environment. She estimates the cost ratio at about 70 percent implementation costs versus 30 percent for software purchase.
Ernst & Young's paper cites the biggest risks with ESM being incomplete or inaccurate project scoping and organisational requirements not being fully understood.
Page suggested financial analysis and implementation planning of ESM to minimise risks. This includes looking at current and future needs; project research; adequate budgeting; implementation strategies; strict project management; as well as maintaining project momentum and focus.
The biggest question is "Why am I doint this?" If there is no clear, tangible and obvious business reason, don't do it. And whoever wants to do it, make them the sponsor and put their job on the line if it fails.
Maybe then you'll get some realism.
Oh, one more thing: ususally the cost in terms of change management and business process re-engineering makes the actual IT cost look trivial.