This is one of the most common mistakes businesses make when implementing ERP. Many assume that if a solution is popular and widely used, it must also be the right fit for their company. However, every business operates under different conditions, and what works for most may not be optimal for you.
In reality, popular ERP solutions are typically designed to serve businesses of all sizes and industries. While they may meet your basic needs, their strengths might not align with your specific business requirements. Conversely, what your organization truly needs may not be the core focus of these generic solutions. As a result, you may need to invest in additional modules or extensive customization to address your industry-specific needs. Instead, it may be wiser to choose a less mainstream ERP that is tailored to your business domain, saving both time and cost on further customization.
Popular ERP solutions may not always be the right fit for your business.
All business activities, including ERP selection, should be grounded in clear business objectives. If you're considering replacing your current system simply because it’s outdated or no longer supported, make sure the new solution aligns with your strategic goals. In fact, this is a perfect opportunity to reassess your objectives and understand how they influence your ERP needs.
Clarifying your business goals will help you define what a "fit-for-purpose" ERP system looks like for your organization. This alignment makes the evaluation and selection process much more straightforward and purposeful.
Choosing an ERP system without tying it to your business goals can lead to wasted resources and poor ROI.
While most ERP systems are built on a similar foundational concept, they are far from identical. Different providers offer varying capabilities, and even a single vendor may offer multiple ERP products tailored to different business needs. Thinking that “all ERPs are the same” could lead you to pick an ill-suited solution.
Ask vendors for detailed proposals that clearly outline the unique features of their solutions. Compare them side-by-side, not just with each other but also with your actual business requirements, to see how each solution supports (or fails to support) your operations and inter-departmental collaboration.
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Some companies create RFPs (Requests for Proposal) that span hundreds of pages, wasting both time and resources. Most ERP vendors understand the core needs of businesses and have solutions to address them. Overloading your RFP with every possible detail doesn’t necessarily lead to better results.
Instead, focus your RFP on your business goals, current pain points, and what you expect the new ERP system to solve, and how. A concise, purpose-driven RFP will yield better responses and help you identify the most suitable solution faster.
Selecting a new ERP system is a major decision that affects your entire organization. It should not be left solely to senior management. Before evaluating potential ERP systems, gather input from across your organization, including department managers and frontline employees who will use the system daily.
Their pain points, expectations, and suggestions are invaluable for understanding what features and workflows the ERP must support. This input will guide both the selection and implementation phases, significantly increasing the chances of success.
Listening to real-world feedback from end users is key to successful ERP implementation.
Implementing a new ERP solution is a strategic move that can reshape the way your business operates. To avoid costly failures, organizations must approach ERP selection and deployment with careful planning and avoid common pitfalls like those listed above.
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