Enterprise relationship management is the driver of our next-generation business. With more and more business moving toward ERP, the mistakes that are made during each ERP implementation is becoming clear. According to many surveys, most of the ERP projects get delayed and most don’t get out of the implementation stage -- in short, they never finish.
ERP projects take tons of investment, not only in the form of money but also in the shape of the energy and other intangible forms. To make sure that you should avoid the failure, we list the top 5 common pitfalls for ERP selection.
Without much delay, let's get started with the list
1. Moving forward without a clear systems strategy
Implementing a full-fledged ERP system requires a clear strategy to work on. Without a plan, the project can easily fail.
The company should be clear about their requirements, scope, vision and any other elements that directly or indirectly connected with the business to bring the best strategy,
The strategy should be system drive and take care of different aspects of the ERP implementation, i.e., financial, strategic or tangible.
If any company fails to strategics correctly, they are just paving the path to failure. Most of the ERP failure stems from the lack of vision and strategy by the organization.
2. Non-sufficient specification requirement
Requirements are the game-changer in ERP implementation. Many organization fails to document their requirement clearly and always try to go to the standard implementation.
Standard implementation can look very suitable for many companies out there, but the truth is that businesses are becoming more and more complex to be standardized.
It is necessary for companies to write clearly down the requirement and always aim for something that beats the industry standards and provides a competitive edge.
3. Evaluating Vendors Before Choosing One
Quickly jumping the gun on the supplier might not be the best of the choices that a company should make. Companies should take proper notes during the choice vendor session.
Proper demo sessions with requirement matching is a good way to start. Also, not every vendor is perfect, and there can be missing features. In that case, it is a good idea to go for customization and ask your vendor about your customization requirement and their ability to proceed with it.
For example, Flectra is a full-blown business solution that aims to provide the best possible ERP solution. It also supports customization, and you can quickly ask your vendor to do proper Flectra customization to fulfill your requirements.
4. Check Vendor Completion Rate
Vendor portfolio and demo can look promising, but that doesn't mean that all their projects are completed on time. In simple words, companies should check the vendor’s capability to finish the project on time.
Calling previous clients of the vendor can give you a clue on their performance and what the company can expect from the vendor.
5. Cost Driven Thinking
ERP implementation is no joke. There are plenty of expenditure, and every company should be focused on costs. But too much inclination over costs can easily hamper the ERP implementation.
The budget, for example, is what the company provisions for completing the project. But, if there is a scope for improving the ERP system by investing more money -- the company should go forward and look at the benefits rather than the costs.
The right balance between the cost and the benefits would quickly make the ERP implementation a grand success and bring the best possible ROI for the company.
Over To You
Any ERP that brings the best possible ROI is a successful ERP. Companies should take care of the ERP system at the implementation stage and should avoid the five common pitfalls for ERP selection.