Many organizations set about the task of selecting a new ERP system and implementation partner for their organization but run aground when trying to compare the various available options or end up making the wrong choice. When selecting a new ERP system, here’s how to avoid common pitfalls

1. Lack of a systems strategy

The first priority to select a new ERP system is to have a clear vision as to what you’re looking for. You need to know what’s definitely in scope. This should be driven by the benefits of implementing ERP – strategic, financial, intangible, and the likely costs of the various options. Unfortunately, many organizations jump straight into ERP selection based on the brand & marketing demo without considering what the business needs and what it’s going to be net cost & AMC cost.

2. Inadequate specification of requirements

Failure to spend time defining and documenting your requirements. You select a system that works perfectly well in certain industries but lacks functionality in your industry. Focus on requirements that give you a competitive advantage, drive business benefits, or that your current systems struggle to manage.

3. Using the vendor’s brand & sales demo to evaluate ERP

Every ERP vendor will be delighted to demonstrate their system to you based on their interpretation of what you’re looking for. Each vendor will have its own interpretation and it will prove extremely difficult to compare what you’ve seen. You can avoid this pitfall by having a structured demonstration that gives you the “apple to apple” comparison you need. A trial run of your own product & process helps better understand of ERP system

4. Lack of focus on the vendor’s ability to deliver

Regardless of the functional capability of any ERP system, a successful ERP project is reliant on the vendor’s ability to understand your business process. Skill to customize to your requirement, user training, and help you get expected benefits. Check implementation history, reference site visits, and calls

5. Focussing on costs rather than benefits

Everyone wants their ERP implementation to be delivered on time and on budget. In general, that’s considered a success. As a consequence, it’s natural during the ERP selection to ensure that software and implementation costs are kept within initial expectations. However, this approach takes no account of the ability of the solutions being assessed to deliver the expected business benefits. A solution that costs 15% more but helps you achieve multiples of that in financial benefits over a period of time is clearly a better option.