7 Ways To Fail In An Erp Selection
The best way to fail at the implementation of Enterprise Resource Planning (ERP) is choosing the wrong software up front. Choosing software without following some basic guidelines is a sure-fire method for disaster. Probably the worst thing someone has done (which we know), is to buy their ERP software in the tradeshow, thinking it would be cheap and easy way to solve their problems. They end up spending more than they expect in finding a way to force the software into their business.
Here are some ways that will keep you on your way to fail at your choice. In other words, they are a great way to make sure that you will choose the wrong system for your company.
A. Select ERP software without understanding your needs. - First, you must make sure that you are getting the best fit for your company by documenting your needs. Requirements should include strategic aspects, reporting, functional, and technical merits of what your company needs to run a business. Choosing this software without documented and without using them as a benchmark to compare against the software is a strategy for the problem.
2. Select ERP software regardless of the business process. - There are certain ways that you run your business. Not all of them are rocket science, but there are certain things that make your company unique and successful. Choosing software without understanding how things flow in your company will create huge problems in the implementation when the software processes the information contrary to how you run your business.
3. Select ERP software for your friend / neighbor / relative to use it successfully in their company. - Another nightmare scenario is actually happening is that decision makers have purchased the software because they ____ (fill in the blank) has used it and it worked great from the company. That the company is not your company. On the surface they may look the same, but just because one company is doing well on the ERP system does not mean that you will. You may have a special process to get your goods out the door. This software may not support that method. Maybe there is some information you should have because of financial, regulatory, or supply chain requirements. Other companies may not have that problem. Maybe you need to track the lot number and _____ 's company is not. There are business issues that can cause too much disruption in information systems, if the system is not carefully tailored to the needs (see # 1).
4. ERP vendors do not have to prove that it will support your business processes. - ERP Vendors have one goal. Selling software. Do they care if appropriate, can successfully run your business, or even if it would be a huge burden on your staff? Not really. In fact, if you buy software that requires a lot of care and feeding because they do not match, then the vendor is one who supports it and makes a handsome stream of income from your company. Get vendors to demonstrate that it meets your needs and can trade information with a method that is consistent with your business processes.
5. Selecting ERP software because it looks cool. - You may laugh at this one, but the user interface section is the selling point of many systems. Is a plain old green screen as much fun to work on a screen ™ is completely full Windows color? Probably not, but Windows ™-based system really solve your problem? Your goal should be to align the system perspective to your business needs. If it comes with great cool interface, if not, you can live with that?
6. Let the ERP vendor tells you what you need to do. - In connection with item 4 above, have the ERP vendor guide you in your selection is a roadmap to hell. You need to guide them. Tell them what you want and expect. Too many times has a vendor to get the trust and confidence of decision makers and lead them to a particular system, regardless of how close the match to business needs and processes.
7. ERP vendor take the first offer without any negotiation. - Usually you can negotiate with the vendor several times and get more than reasonable price. But the key is to follow good negotiation tactics. Do not forget that most everything is negotiable. Software, service, maintenance, time, etc. In the ERP industry, the best time to buy the software at the end of the quarter or calendar year according to vendor finance.
The main thing to understand is that there is a path that can lead you to success and failure of many routes. Know thyself first. Understand your business and document it. It is not enough to think you know it. Talk to all levels of users and managers. Make sure that everyone's needs are defined and the priority placed on those needs. If you are not sure to choose a major investment such as ERP, then get outside help from consultants who are not biased against the system and can guide you. Be careful help from a company that has a practice of SAP, Oracle or practice, etc. They have the internal motivation to help you choose their flavor of the software.
Most importantly, understand that you need to drive the process. It is your choice and you have to live with the results. As a good project manager will tell you, starting with the end in mind. What do you want the system to do for your company now and in the seven years from now? Understand this and get ahead in choosing your system.
Here are some ways that will keep you on your way to fail at your choice. In other words, they are a great way to make sure that you will choose the wrong system for your company.
A. Select ERP software without understanding your needs. - First, you must make sure that you are getting the best fit for your company by documenting your needs. Requirements should include strategic aspects, reporting, functional, and technical merits of what your company needs to run a business. Choosing this software without documented and without using them as a benchmark to compare against the software is a strategy for the problem.
2. Select ERP software regardless of the business process. - There are certain ways that you run your business. Not all of them are rocket science, but there are certain things that make your company unique and successful. Choosing software without understanding how things flow in your company will create huge problems in the implementation when the software processes the information contrary to how you run your business.
3. Select ERP software for your friend / neighbor / relative to use it successfully in their company. - Another nightmare scenario is actually happening is that decision makers have purchased the software because they ____ (fill in the blank) has used it and it worked great from the company. That the company is not your company. On the surface they may look the same, but just because one company is doing well on the ERP system does not mean that you will. You may have a special process to get your goods out the door. This software may not support that method. Maybe there is some information you should have because of financial, regulatory, or supply chain requirements. Other companies may not have that problem. Maybe you need to track the lot number and _____ 's company is not. There are business issues that can cause too much disruption in information systems, if the system is not carefully tailored to the needs (see # 1).
4. ERP vendors do not have to prove that it will support your business processes. - ERP Vendors have one goal. Selling software. Do they care if appropriate, can successfully run your business, or even if it would be a huge burden on your staff? Not really. In fact, if you buy software that requires a lot of care and feeding because they do not match, then the vendor is one who supports it and makes a handsome stream of income from your company. Get vendors to demonstrate that it meets your needs and can trade information with a method that is consistent with your business processes.
5. Selecting ERP software because it looks cool. - You may laugh at this one, but the user interface section is the selling point of many systems. Is a plain old green screen as much fun to work on a screen ™ is completely full Windows color? Probably not, but Windows ™-based system really solve your problem? Your goal should be to align the system perspective to your business needs. If it comes with great cool interface, if not, you can live with that?
6. Let the ERP vendor tells you what you need to do. - In connection with item 4 above, have the ERP vendor guide you in your selection is a roadmap to hell. You need to guide them. Tell them what you want and expect. Too many times has a vendor to get the trust and confidence of decision makers and lead them to a particular system, regardless of how close the match to business needs and processes.
7. ERP vendor take the first offer without any negotiation. - Usually you can negotiate with the vendor several times and get more than reasonable price. But the key is to follow good negotiation tactics. Do not forget that most everything is negotiable. Software, service, maintenance, time, etc. In the ERP industry, the best time to buy the software at the end of the quarter or calendar year according to vendor finance.
The main thing to understand is that there is a path that can lead you to success and failure of many routes. Know thyself first. Understand your business and document it. It is not enough to think you know it. Talk to all levels of users and managers. Make sure that everyone's needs are defined and the priority placed on those needs. If you are not sure to choose a major investment such as ERP, then get outside help from consultants who are not biased against the system and can guide you. Be careful help from a company that has a practice of SAP, Oracle or practice, etc. They have the internal motivation to help you choose their flavor of the software.
Most importantly, understand that you need to drive the process. It is your choice and you have to live with the results. As a good project manager will tell you, starting with the end in mind. What do you want the system to do for your company now and in the seven years from now? Understand this and get ahead in choosing your system.
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