Common Pitfalls of ERP Software Selection

Many business owners consider Enterprise Resource Planning (ERP) a novelty — and for good reason. Traditionally companies have relied on single software applications, one for each business function.

Now companies see that an integrated software platform like ERP promises more streamlined operations. Below are ways to avoid seven of the most common pitfalls when picking an ERP software product.

Train Your Employees in the Program

If your employees lack sufficient training in ERP, they could become frustrated because of their inability to operate it. It’s imperative that employees understand it before you proceed with implementation. That way they’ll feel more comfortable when it goes live.

Determine Your Specification Requirements

First, you must have a clear idea of what you wish to accomplish with your ERP application. Some ERP programs may suit other companies and be inappropriate for yours. You have to test the various parts of the program and make sure they’re functioning according to your own specification requirements.

Search Carefully for the Right Vendor

You should avoid vendors who have a one-size-fits-all mentality. Be inquisitive, going beyond the simple, more apparent details of a given ERP product. Study the fine print, and look into everything, no matter how seemingly mundane, regarding the product and customer support services. Also, as you browse for a vendor, let your team help you. You’ll be glad you did.

Do a Cost/Benefit Analysis

It’s recommended that before you purchase your ERP program, you compare its initial cost with your long-term benefits. You should consider factors other than cost when picking your ERP software. An application may be more expensive than another for a reason. Ultimately, in order to get the most for your money, you may have to spend a little more for top quality.

Deactivate Legacy Applications

The old applications you used before are now obsolete, and may contain sensitive data that hasn’t migrated to newer systems. They therefore must be deactivated. Failing to do so could be costly, and attempting to rectify the error could be a nightmare for your entire team.

Have Realistic Goals and a Sufficient Budget

You should take your time when completing your ERP implementation. Since this process is complex, nothing should be rushed. You should, moreover, have a sufficient budget for your ERP program. Remember, you have to pay for both the system itself and your team.

Test, Test, Test

In order to see the results of your changes, you have to test your application thoroughly. You won’t get much of an idea of how it works after one or two meetings with the vendor. Failing to test your application thoroughly can mean expensive down time for you and your employees.

2018-12-28T05:07:45+00:00

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