An ERP project named CityTime, an effort by New York City to modernize

its payroll system, has been dubbed the ERP failure of the decade. The project was originally budgeted for around US$60 million. The cost has since ballooned to $700 million-plus, according to the New York Daily News.

This December, New York Comptroller John Liu suspended Joel Bondy, executive director of the city’s office of payroll administration, and stopped all payments to consulting firm Spherion until a thorough review has been conducted.

New York Mayor Michael Bloomberg has called the project a “disaster.” New York officials simply did not understand just how complex the project would end up being, Bloomberg said. “Once they started, part of it was they just kept adding things that it made sense to do,” he said.

Who or what is to blame for the failure of ERP projects such as the ones sited above?

Would companies be better off not implementing ERP systems?

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