Tag Archives: Mistakes to avoid when selecting ERP Software

The top five mistakes that a business organization should avoid when choosing an ERP software

Deploying an ERP or Enterprise Resource Planning system is a costly proposition, not only in terms of licensing fees and maintenance but also in terms of dedicated time and resources. And yet, most often, business organizations are dazzled by the promise of the vendor, that is to deploy the framework and the business would instantly run smoother and boost profits. However, this is not always the case. That is why it is very important for any organization planning to integrate the software to determine the top five mistakes that should be avoided.

The following are the mistakes to be avoided when choosing an Enterprise Resource Planning framework.

1. Not knowing what the company truly needs in the software. For any organization, it is paramount to take the time to understand what it truly needs before plunging ahead. To start with, it should determine whether it requires a fully integrated package or best-of-breed freeware. Often, this would depend on the problems one is trying to solve or the chances one is trying to capture and the structure and size of the firm as well. This kind of package would enable streamlining the processes and achieve enhanced productivity at a lower cost and lesser resources.

2. Not selecting the most qualified ERP vendor. When searching for an ERP package, choosing the right vendor could make a difference between a successful implementation and ending up with a system that falls short on meeting business requirements. One of the most common mistakes in choosing a vendor is choosing one who does not know the client business. Settling for a partner with in-depth understanding of the industry could help achieve a more rapid deployment, more cost-effective and more efficient. Service providers who are not in synchronization with where one’s industry is heading should be avoided.

Choose Right ERP Software

3. Failure to recognize the uniqueness of the business. Every industry is unique and lack of industry specialized capacities within the software is a common cause for failure of ERP implementation. An organization should refrain from selecting a program that limits the firm’s capabilities and growth. It should enhance the enterprise and not hinder it. Moreover, it should have specialized capabilities necessary for addressing all company needs. By opting for a solution that is specialized for one’s industry, one is able to acquire a specific targeted solution to meet unique enterprise requirements.

4. Not giving the software implementation the attention it requires. A common issue during ERP implementation is the lack of a committed project manager on the customer’s end. Majority of successful implementations happen when the client’s project manager dedicates eighty to ninety percent of their time for implementing the project. Lack of support and commitment from the top is another area where organizations fall short. A robust commitment from the top would flow through the firm to make implementing the new package a success.

5. Not investing in the enterprise resource planning software for the long term. A company should be realistic about perceptions of cost and expectations when selecting a solution. While hard dollars spent are vital, the key is choosing the right package and the right vendor who would provide an effective and fast implementation, high ROI and low TCO after implementing the process.