One of the most critical decisions a growing company can make is the introduction of new technology into its business. There are so many things to think about when considering an
Technology is the engine that drives corporate productivity.
Price-driven, fire-aim-ready technology deployments are proven to fail. Company decision makers unable or unwilling to commit to do the job right are asking for trouble-and that's what they typically get, along with very costly fixes. Reasons abound, but most often it boils down to the basics: budgetary mandate to go as cheap as possible and to implement in an impossibly-short time period. While cost and time efficiency certainly factor into the final equation, they should be guidelines, not primary decision-making drivers.
Before making determinations about either, commit to researching what's needed in scope, time, and money. Then, and only then, establish a timeline and budget for the process. Instead, what often happens is a dramatic call for sweeping improvement. Technology is thrown at the problem as a quick-fix. Companies substitute the technology itself for sound business process.
Quick-fix thinking isn't anything new. From the time the innovative General Hannibal implemented new technology (elephants) to enhance his ability to wage war, management theorists have recommended wave after wave of performance improvement and technology strategies to gain the competitive edge. Noble intentions drive these efforts, and each may address a part of the problem. If the goal is to symbolize to employees, customers, and shareholders that management recognizes the challenge and is doing something about it, then any of these campaigns will do the job. However, piecemeal approaches purported to be the answers to technology issues can be as dangerous as no response at all, as they can absorb resources and detract from the true needs.
This is confusing; so what does a person need to think about to get started? A few years ago Deloitte and Touch surveyed hundreds of companies who had recently purchased a new ERP system; what was unique about this survey is that D&T separated out the respondents' criteria into first time and second time purchasers to determine if experience changed purchasing criteria.
|Top Ten Criteria for Selecting Software||2nd Time||1st Time|
|Vendor’s track record of performance||2||10|
|Software’s ability to fit the business||3||4|
|Growth potential of software||4||7|
|Price of the software||5||1|
|Quality of documentation||6||9|
|Functionality of the software||7||5|
|Ease of use||8||3|
|Software works with existing hardware||10||6|
If you look at the second time column, (experienced purchasers), solution provider support and
This last criterion is the reason
So when beginning a search for a new ERP system, look for a partner who
by BroadPoint Technologies -
8 thoughts on “Choosing an ERP System - So Many Things to Think About!”
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A much more firm foundation would be to own the software (ie. Free Software - Free as in Freedom), not to rent it from a proprietary vendor - as all of those limitations come into effect.
If you don't, you're renting it (proprietary software license). You can address any item on the list simply by changing your own software or switching vendor and keeping the software.
100% Custom, no license fee, unlimited user, wherever-you-want, non-proprietary software that you really own is software you can invest in and grow. Add any feature, any time. No limits - and in our case, about 50% lower cost than the competition! 🙂
I've rss feed so I could check out further posts from you. Looking forward to more posts on the same subject. Thanks for the interesting blog!
I've seen this study cited many places, but have been unable to locate the original source. Do you have any ideas?
One mouse click often leads to another fine blog. Like yours - Thanks.
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Very insightful! Though ALL of the critiria mentioned in your chart should be considered and weighed, I agree that the partner that the customer chooses to team with can make or break the implementation!
Everyone looking for a new/replacement ERP system should rate their priorities ~ and then step back and survey the field again!