Why It Pays to Do Your ERP Software Research Before You Buy

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If you are reading this, you are probably researching a new ERP software solution (https://www.socius1.com/solutions/erp/) for your organization, and if that is the case, I encourage you to do a thorough job of it.  As you are doing your research, there are four key areas that you should hone in on to ensure that your solution meets your needs well into the future:

  • Functionality – Identify the essential features that you need in order to operate and make sure they are included in the ERP solution you select.
  • Ease of Use – Choose a solution that is intuitive and enables your users to easily navigate the solution.
  • Total Cost of Ownership – Define your budget and stick to it!
  • Integration – Ensure that your solution can integrate effectively with existing technology.

The Aberdeen Group recently released their report on “The Dangers of Uninformed ERP Selection” in which the writer, Nick Castellina, demonstrates the benefits that organizations who choose solutions based on at least 3 of the 4 key areas above experience vs. those that do not.  He categorizes these two groups as the “informed” and the “uninformed.”

So what do you risk by staying in the “uninformed” group?  Uninformed organizations:

  • Have 24% fewer business processes aligned and standardized through their ERP implementation than informed businesses
  • Are 31% less likely to have their ERP implementation aligned with organizational objectives
  • Are 36% less able to identify gaps between ERP functionality and other internal technologies
  • See 2% less reduction in operating costs from their implementation
  • Save 5% less than informed organizations on administrative costs
  • Are unable to reduce inventory by the same amount as informed organizations
  • Cannot improve their cycle time at the same rate as informed companies
  • Will likely spend 45% more on their ERP implementation due to project scope creep
  • Will have to wait a full year longer than informed organizations to reach their ROI

You can avoid these issues, and others, by arming yourself with thorough ERP software research, engaging key stakeholders in the decision making process, and aligning your ERP software decision to your business needs.  If you need help with this, request a complimentary Business Strategy Assessment that will get you started identifying your non-negotiable business requirements and the possible ERP solutions that are available to you.

By Socius, an ERP Software Partner in Ohio (www.socius1.com)

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