How to Choose the Right ERP System?

The sustainable growth of small and medium-sized businesses requires ERP-systems implementation to centralize processes of production and management.

Many companies face an inefficient work organization: relevant decisions are postponed, contacts of potential clients or partners are lost, deadlines for new product’ version development are missed. Searching for an up-to-date solution to these problems, many enterprises tend to discover the ERP-systems that is a perfect instrument to keep the business under control.

According to my experience, many business runners tend to make the same mistakes when it comes to choosing ERP software. Thus, I’ve decided to review the major mistakes that managers make while choosing ERP-systems and the most appropriate solutions that will help you come clean:

Before proceeding to the specific problem-solution format, I’m supposed to emphasize that you keep your eyes open during the presentation of the ERP solution, as your potential partner has to give you the maximum of information concerning the system. General phrases, overused commercial clichés, and lack of specificity are a wakeup call to think twice before the introduction of such a system into your business, as, ideally, the functionality of the ERP-system should be described in detail and illustrated by the instruction. This instruction should include the principles of how one or another functional section works as well.

Unclear Requirements

As the implementation of the ERP-system is aimed at solving certain problems, describing the current difficulties and enterprises’ expectation for ERP introduction as detailed as possible is a top priority. If you aren’t aware of the effect you expect to get, you won’t be able to estimate the suitability of the work done.

Solution

Ask your staff to specify the existing problems and set expectations. Only after getting this list (that won’t be short, believe my experience), you will be able to evaluate the real needs of your business, thus, define the set of requirements ERP software should respond.

Excessive Reliance on Demo Materials

ERP software providers frequently present only the simplest operations in the demo version: ordering a certain number of goods and paying with the card, for instance.

Solution

During the workflow, the possible scenarios are much more diversified, hence, it is crucial to find out whether the chosen ERP solution supports the processes in the format familiar to your team.

Insufficient Manager Training

The main objective of ERP implementation is an increase in the efficiency and productivity of a company’s performance, namely the deep changes in routine processes.

Solution

Only the diligence of managers who have to master a new system in the shortest terms and help their co-workers do it with maximum efficiency as well becomes a key factor to success.

Neglect in Re-Training of Employees and Technical Support

Learning only the basics under the direction of ERP provider’s support team to pay less isn’t a winning strategy for business during the implementation of an expensive and integrated solution. Unfortunately, many business runners are not inclined to pay enough attention to this point during contract building. As a result, they get only a few hours of tech support and minimum training package for their employees.

Solution

Clarify and pay close attention to the conditions of technical support that offer the ERP-system provider, it’s timing, and price.

Reliance on Only One Opinion

Frequently, only one department or manager becomes an initiator of choosing one or another system. In this case, a company risks getting a one-sided system that is ideal only for this employee or unit, ignoring the other business’ needs.

Solution

Any decision in favor of one or another product should be made taking into account a view of the majority. This is quite an evident solution, however, according to my experience, this is the thing many forget about.

Ignorance of Specific Platforms for Your Industry

Various modules and versions of the famous programs customized for a specific industry or company’s type exist. For example, Salesforce, the leader among the platforms for clients service has the lite edition ServiceMax targeting sales agents who work outside the office. However, the majority of companies aren’t aware of its existence, thus, they keep on purchasing a more resource-intensive and expensive version of Salesforce.

Solution

study all the proposals thoroughly to choose the most appropriate product for your business situation instead of purchasing the most popular and well-advertised ERP-system, as you need a functional primarily, not popularity.

Lack of Experts’ Objective Judgment

Obviously, you won’t find an ERP expert among your employees, thus, you will have to turn to the specialists to introduce and configure this platform. Unfortunately, only a few of them have strong expertise in the implementation of numerous and diverse ERP-systems, hence, can recommend the most profitable solutions from their list. Besides, if they are affiliated with a provider of a specific product, you are at high risk of receiving a sponsored system instead of a functional one.

Solution

Seek assistance from independent agencies, able to run a detailed analysis of your business needs and ensure a wide choice and implementation of the best-customized ERP system.

An illustrative case has occurred in my company not so long ago: two potential clients applied to my company regarding an ERP system implementation. One sent the detailed requirement on 20 sheets, another wrote the phrase “I don’t know a thing about it, I just want everything to be automated. What can you offer me?”.