ERP system selection methodology: Difference between revisions

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;Inability to understand offering by ERP vendor
"It is estimated that approximately 90% of enterprise system implementations are late or over budget".<ref>Martin, M., 'An ERP Strategy', ''[[Fortune magazine|Fortune]]'', 2 February 1998, pages 95–97.</ref> A plausible explanation for implementations being late and over budget is that the company did not understand the offering by the vendor before the contract was signed.{{Citation needed|date=September 2010}} A typical example of this would be the scenario where a vendor may offer 5 days of services for the purpose of [[data migration]]. The reality is that there is a huge amount of work required to input data onto a new system. The vendor will import the data into the new system but expects the company to put the data into a file that is easy to import into the system. The company are also expected to extract the data from the old system; clean the data and add new data that is required by the new system. "ERP, to be successful, requires levels of data integrity far higher than most companies have ever achieved – or even considered. Inventory records, [[bill of materials]] (BOM), formulas, recipes, routings, and other data need to become highly accurate, complete and properly structured".<ref name="MakingItHappen">Thomas F. Wallace and Michael H. Kremzar, ''ERP: Making it Happen''. ISBN 0-471-39201-4.</ref> This typical scenario is one of many issues that cause implementations to be delayed and invariably lead to requests for more resources.
 
;Focus on added features/flashiness
Don’t let ERP providers distract you with flashy, over-the-top features, it’s often a ploy to get you distracted from the cost or other necessary features that may be missing. While extra “stuff” is great, it’s imperative to look at your business’s wants and needs. Establish the needs, then add the wants if possible.Ask questions throughout the vendor selection process to avoid getting distracted by any additional, unnecessary features. Keep digging and learning more about the vendor to find out exactly what they offer for a price; many added features cost extra, so you’ll need to find that out as well.<ref name="http://www.workwisellc.com/erp-selection-mistakes-to-avoid"/>
 
== A proper system selection methodology ==