ERP system selection methodology: Difference between revisions

Revision as of 22:09, 7 March 2017

Revision as of 02:52, 8 March 2017

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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.

; Viewing ERP as a Simple IT Project

"Assigning your ERP system as a simple IT project can be the most costly mistake one can make. After all the time and resources allocated to this project, you will end up isolating your ERP system in a vacuum. Without proper input company-wide, your ERP system will not be engineered and aligned to work with the business processes and needs of your employees.To realize the full potential of your ERP system, everyone should be engaged in the transformation. Executives should lead the charge, making the ERP implementation project a broad program and major initiative in every department. This will ensure business process alignment, employee ownership/buy-in and ultimately employee utilization." <ref> http://www.softwarethinktank.com/guides/top-5-mistakes-when-implementing-an-erp-system/</ref>

== A proper system selection methodology ==