Top 5 Mistakes To Avoid When Selecting ERP Software

  1. Not Being Aware Of Exactly What You Need in ERP Program

You have to fully understand your needs before looking for a solution to your problem. Do you really need a fully integrated ERP software or best-of-breed program? The answer will be based on the problem you want to resolve or the potential opportunity you are attempting to snag along with the overall size and make up of your enterprise. To illustrate, small to midsized businesses that have restricted spending budgets and minimal means, you should think about selecting ERP that is fully integrated. This system will help you to simplify your operations and gain better efficiency with reduced costs and minimal resources.

Think about this, for you to effectively apply and use best-of-breed methods, it will require considerable expertise in both the business regulations and the database constructs within each use of your organization operations. This is because each of your separate systems have to operate together for your data to be consistent and correct all through your operations. In the event that you’re not ready to manage the often complicated job of developing your individual interface between varied systems, in that case fully integrated ERP program is your better option.

Unless your requirements are quite restricted, be ready to experience a considerably reduced total cost of ownership (TCO) with totally integrated ERP computer application when compared with best-of-breed options. Employing individual best-of-breed solutions will often significantly raise your total license and cost of implementation, as well as trim down general operating efficiencies. With a best-of-breed option, you will not be shielded from version obsolescence, which will result in further expenditure down the road. Furthermore, support of your functions will be impeded while you deal with issues across different suppliers.

The ideal match for most small to mid-sized businesses is usually a fully integrated ERP computer application. Even so, the remedy has to accommodate almost all, if not all, of your important business needs – not an easy job for just one program. To get over this hindrance, select a partner with sector expertise who is able to make certain that your most important business demands are fulfilled.


  1. Not Identifying the Uniqueness of Your Organization

Every single marketplace is different. An insufficient sector specific feature within your computer program is a regular reason for breakdown for an ERP program execution. Quite often “horizontal” remedies that work for a number of sectors have to be greatly modified so as to adapt to your company model and to blend with your various other in-house platforms. Be careful that while introductory license and servicing charges might seem lower, these run-of-the-mill remedies could trigger higher charges because of substantial personalization demands, changes, continuous maintenance, and lengthier system deployment timeframes; lowering and delaying your overall ROI.

Refrain from selecting computer software that restricts your capabilities and the growth of your business. The software program ought to improve your business, not impede it. The software you select needs to have the specific features required to deal with each one of the business demands of your enterprise as well as your sector, not just a few of them. For a market-customized answer, look for a vendor who provides specialized software programs for your market and therefore can supply the most efficient remedy for your business requirements. Your answer ought to be specifically geared to your business and sector and your supplier must know your industry just as well as you; allowing them to provide product suggestions.


  1. Not Selecting the Most Qualified ERP Software Supplier

Probably the most frequent mistake in vendor choice is picking an ERP program vendor who doesn’t understand your business or its sector. Company leaders tend to be under the false impression that opting for software by a “big name” supplier will result in a major ROI. However, the majority of well-known suppliers tend to be too big to provide you with exclusive sector knowledge for any particular market segment. Don’t put yourself in a scenario where you need to instruct your ERP software partner about your business. Selecting a partner who actually has a thorough knowledge of your market sector can help you reach a lot quicker deployment, become more cost efficient, and be more productive using your ERP software option. Often times, resellers must understand your business interests and then retrofit a tailor-made approach to satisfy your unique needs, which in the end will cost you more money. Locate a partner who uses best practices, not only general business process flows, in your line of business.

Stay away from suppliers who are not attuned with the direction of your industry. Preferably, search for a partner who knows your sector and where it is going. This will help you save money by removing the need to modify your method to correspond with uniform industry demands.

Be prepared to have an extended partnership with your ERP software provider. You should be skeptical of suppliers who are eager to set up your system and disappear; you want the vendor to develop with you in order to continuously expand your business. Great customer service, continuous product releases, and consumer forums like on-line message discussion boards and user conferences are all important business features and services that your supplier should provide when they are planning to develop long lasting partnerships.


  1. Not Providing ERP Software Implementation the Attention It Requires

A typical challenge when performing ERP software implementation is the absence of a dedicated Project Manager on the customer’s end. The most successful implementations happen when the customer’s Project Manager commits a large part of their time to implementing the project. The function of the Project Manager would be to organize the procedure and keep things on track. When you’re spending money and time on setting up a process that will improve the effectiveness of your business, isn’t it worth dedicating an individual to ensuring that it’s a success?

When there isn’t support or commitment from the company’s leadership, projects usually fall apart. Always keep the President or other leading executives involved in the process. Not in the day-to-day process, that is the job of the Project Manager, but to be involved during the status meetings. Commitment from the leaders will make implementation of the project flow much smoother and the ERP software an ultimate success.

The lack of documentation of your company process flows once implementation is done is also a typical ERP program error. The most successful changeover is possible if there is a printed user guide for all departments. That way the company can effectively conduct business while in the transition and learning period. Any new employees can be brought up to speed quickly with this type of reference and learning material.

Never assume that the employees’ training is complete when the supplier has through the implementation and the training provided them. Once again, this assumption can lead to project failure. Continuous employee training is essential even after the software has been set up and in use, even with the supporting documentation. Follow up training should be done at 8-month (maximum) intervals. That way you can pinpoint areas that were initially not needed but have become useful later.

Adequate and comprehensive testing is yet another frequent error made while implementing ERP software. It is best to execute “a day in the life” evaluation in which employees from various departments of your company perform their job utilizing real data. Going over the entire process with a pseudo-real order when in testing mode enables you and your employees to pinpoint any faults or misinterpretation in the process flows prior to it being deployed live. Problems at this stage can be tweaked before going live. To be able to eliminate many mistakes after deployment and take full advantage of the possibilities of your new ERP software program, it is essential to examine all of your data, processes and procedures before full rollout.


  1. Not Committing to ERP Software for the Long-Term

When deciding on ERP software, be practical about your goals and opinions of price – you’re investing to develop or improve your business. Therefore, the important thing is selecting the right ERP software and the appropriate partner who can ensure that you get a fast and successful implementation, great ROI, and low TCO after program is in use. It is natural to look for a deal with ERP software, what looks like the cheapest price option usually results in the most long-term expense. When obtaining proposals, if you discover a vendor’s estimate to be way below that of their immediate competition, that deal is too good to be true or they left out a critical piece of the project.

Apply your intuition and sound business judgment when evaluating supplier prices. Seek out programs that promote your capability to attain your company’s main strategic goals. Operate within your finances, but be sure you understand what you’re getting at the beginning and look forward with your supplier as to when you can expect to start making a positive ROI. Rushed judgments for the cheapest cost ERP software supplier or solution can result in numerous hidden costs down the road, and postpone or even completely eliminate any ROI for your company.


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