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ERP Selection; 10 mistakes

Updated: Jan 18

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Top 10 Mistakes to Avoid When Selecting an ERP

The scene is all too familiar: Monday morning, by the office coffee machine. Jane from Accounting is venting about the new software that doesn't sync with the old one. Mark from Sales mentions how he can't access real-time inventory data, and Sarah from HR wishes there was a unified system for payroll and employee records. These are the telltale signs of an organization that dove headfirst into a tech solution without a clear IT roadmap.

Enterprise Resource Planning (ERP) solutions are integral to the smooth functioning of businesses today. However, the process of selecting the right ERP can be fraught with challenges. Here are the top 10 mistakes organizations often make during this crucial decision-making process, and how you can sidestep them:

  • Lack of Planning: Every ERP solution must align with specific business requirements. Jumping in without a clear plan can lead to mismatched functionalities and wasted resources.

  • Not Understanding Exact Needs: Before selecting an ERP, conduct a thorough analysis of your organization's specific requirements.

  • Improper Requirements Gathering: The success of your ERP hinges on understanding and documenting your needs accurately.

  • Overlooking Business Process Analysis: Understand how your organization operates without falling into the trap of "As-Is" mapping (more on that later). A new ERP system should enhance, not hinder, your existing processes.

  • Siloed Decision Making: ERP impacts every department. Ensure that representatives from all sectors, including management and IT, have a say in the selection process.

  • Buying Based on Price Alone: While budget constraints are real, the cheapest option might not always be the best fit for your organization's unique needs.

  • Too Many Stakeholders: While it's essential to have diverse input, having too many decision-makers can lead to confusion and delays.

  • Undefined Scope: Clearly define what you expect from the ERP solution. An ambiguous scope can lead to feature bloat or missed essential functionalities.

  • ERP Fatigue: Implementing an ERP solution is a significant undertaking. Ensure your team is prepared for the change and has the necessary training.

  • Ignoring Total Cost of Ownership: Beyond the initial purchase price, consider ongoing maintenance, training, and upgrade costs.

In conclusion, the journey to selecting the perfect ERP solution is paved with potential pitfalls. However, with careful planning, stakeholder involvement, and thorough research, you can ensure a successful implementation that propels your organization forward. Get in touch with us if you are thinking about replacing your ERP and want support with the selection process.

Source: 2WTech, ERP Advisors Group, and other industry insights.

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