ERP Software System Selection Mistakes

ERP (Enterprise Resource Planning) software system is the ultimate savior of modern day business. As you know, modern day business has its seamless complexities when it comes to handling different departments under the same roof. There are so many departments and processes in the company. Although these departments act individually to provide the best output, not having a common link could result in the failure of the overall success. So, it’s important to have a centralized system to contain all these departments.

When a software system is able to contain and unify them, we have a successful business in hand despite the complex structure of your business. For this reason, Enterprise Resource Planning software system has been gaining popularity among companies all over the world. If your company hasn’t made that transition yet, you are in for unpleasant surprises. However, ERP software system selection mistakes play spoilsport in most cases as we see. ERP software system selection mistakes can turn out to be the villain here despite your honest effort to unify different departments.

Let’s take a closer look at the ERP software system selection mistakes to see where these companies go wrong. It all comes down to the selection of the right software system. If you don’t pick the right one, you are going to lose money and resources. In short, ERP software system selection mistakes can backfire in a way in which it can even threaten the existence of your business. But since it’s unavoidable in today’s world, we need to pick one – in fact, the right one to ensure a smooth run. Let’s take a look couple of most common selection mistakes when it comes to Enterprise Resource Planning software systems.

First and foremost, you need to be very clear about your requirements. The requirements are the most important thing when it comes to deciding the right ERP system for you. You need to outline your priorities before you approach your vendor. Also, you need to make sure that you are not ambiguous when it comes to listing your requirements. Don’t try to mislead your vendor and they will return the courtesy.

When it comes to ERP software system selection mistakes, not defining the scope is a major one. Often, companies fail to mention the scope clearly. Remember, it’s not going to help both parties. Having a clear scope will benefit both as both will be able to save time and money. Also, it’s important to gain the interest of the employees, who are going to be using this system. You need to get them engaged right from start, so that they will ensure the success of it when it finally comes in to picture. Also, the senior management should support the system whole heartedly. For this, they need to look deep in to the plan and get convinced about the effectiveness of the system. At this step, it’s extremely important to keep the wrong people at bay. As you know, wrong people can only ruin the system. It needs experts and you have to bring them in to make it a success. In case if you don’t have them in your company, you need to fetch them from a 3rd party.

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Keywords: Causes of ERP Failures, Cost of ERP Implementation, Total Cost of ERP Ownership

By: Terro Dashner

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