Executives, managers and decision-makers must take into account these 5 factors when choosing to implement a new ERP software solution:
Deciding what needs to change
Most executives lack a concrete framework by which to identify the relatively small handful of things that need to change because they are only focused on making money now so, they often turn to traditional ERP solution in hopes that if they change everything, maybe some of the changes will be enough to help them make more money. This less than “strategic” approach to ERP is one of the reasons ERP projects tend to over-promise and under-deliver.
• More than one out of five fail to deliver any recognizable business benefits • 40% of ERP integrations result in operational disruptions at go-live because managers aren’t tackling what really needs to be changed.
Making R.O.I. tangible
It has become a norm for some executives and their ERP search teams to buy traditional ERP solutions dump it into their companies and miraculously expect that it will help them run more effectively, more efficiently and make them more money. Of course, no one has really discussed in detail precisely how or why these results will be achieved and what specific value will be realized from the integration.
Gathering prioritized “business requirements”
The search to acquire a traditional ERP business solution begins with what is called “requirements gathering.” Some choose to do this internally, while others engage consultants to assist them with the process. Nevertheless, the result of the ERP selection process is usually a long, long list of supposed “business requirements. Unfortunately, since these lists are almost always compiled in functional silos, there is almost never any cross-functional agreement about the requirements which will really be effective at delivering improvements that will make a real difference.
Choosing the right technology
Now we are getting to the nitty-gritty. Unfortunately, far too many executives make their ERP software selection based on the simplified reasoning of: We need to make more money. Of course, if the executives and managers a) do not know what needs to change in order to help make the company make more money, b) do not know at any level of specificity what changes will actually deliver ROI, c) are working from a list of vague “business requirements” then they will end up choosing the an ERP technology that cannot properly satisfy their business needs.
Selecting the right vendor
Most executives make this decision in one and only one way: whatever vendor comes with the software they selected is the vendor they will choose. Of course, at this point, it really makes little difference – right? WRONG. The right vendor can guide executives in launching a successful ERP solution by providing the proper support, insight, and experience to ensure the ERP product will add value to the host company and help them reach their ROI. If you have any questions please ask me or any of the solution advisors at TGO Consulting. We’d be happy to provide you with more information. Download 12 Signs you Need a Modern ERP Solution.
The post What Company’s Need to Know About Choosing the Right ERP Solution appeared first on TGO Consulting.