How Not To Select an ERP System
Eric Kimberling
Technology-Agnostic Digital Transformation Expert | ERP, Human Capital, Business Intelligence, and Supply Chain | Change Management | Expert Witness | Speaker | Author | Tech Influencer | S/4HANA | D365 | Oracle ERP
Each day, we get dozens of inquiries on our web-site from people looking for guidance on how to select and implement new ERP systems. However, this particular anonymous live chat discussion with a company doing some research on our site caught our attention:
Not only did this provide good humor – which is largely missing in the enterprise software industry – but it was a stark reminder of how companies should not select and implement new enterprise systems. Unfortunately, too many ERP consultants are too quick to make recommendations based on biases, kickbacks from ERP vendors and lack of knowledge of various ERP systems.
Selecting and implementing a new ERP system shouldn’t be like throwing a dart at the wall. There are literally hundreds of ERP systems out there – each with their own unique strengths, weaknesses and tradeoffs. Sure, your evaluation process shouldn’t be overly complicated, but they should be well-thought out and executed.
Also, if this is how you were to pick your ERP system, what does that say about how it will be implemented? To start, you will probably over-spend on a new system since you’re not considering all of your viable options. And the shotgun approach to implementation is typically even more destructive than it is during the evaluation phase. Nothing good can happen by rushing an enterprise software initiative - other than maybe saving a little bit of time in the short-term.
What are your thoughts on how to best strike that balance between an effective and well-run initiative versus one that drags on for too long? In the meantime, you can learn more about what other companies are doing by reading Panorama Consulting’s 2016 ERP Report.
Founder @Haile Solutions & AgencySoft | Chartered Accountant | Project Management Professional helping professional services businesses maximize their bottom line
8 年This is a great topic Eric. I genuinely believe that the principal reason for ERP implementation failures is inadequate planning which leads to the wrong selection. Whatever the size of the business, it needs to do a proper evaluation of its business, decide if it needs an ERP at all, build a business case and understand it's requirements ALL before it should look to see what's out there.
"Growth is Good" -- CFO, Industry Writer, Public Speaker
8 年This is a cross capitalization (small, mid and large cap) issue. People insist in putting the horse before the cart. No clear business plan, strategy or functional requirements. Total lack of business process mapping and GAP Analysis. No clue in how to look for a product (the publisher), the vendor (3rd party installer and/or implementor) and the proper way to run a demo. In the end, they over spend for the wrong product that isn't implemented correctly or meet their needs today, and in the mid and long term.
IRONMAN Finisher! ; VP Global Partners DELMIAWORKS at Dassault Systèmes; Executive Athlete
8 年I agree that your search should not be overly complicated and you do need to make sure the system can meet your needs today and for future growth. Price shopping will only get you a list of systems, a real search should focus on solving your issues.
Greater Good Tech
8 年I received a similar prospective call yesterday. Just tell me how much it costs so I can decide if it's worth switching from the solution I have today that hasn't worked for the last 9 months.