Choosing a new ERP system is not easy. As a company, you rarely make a choice that has a greater impact on the organization. Every system has its pros and cons, and the decision you make can have a big impact on the future of the organization. Here are 6 of the most frequently cited reasons why choosing ERP software is so difficult:
1. High cost
Software licenses, investment in hardware and infrastructure, implementation, maintenance and support; whichever system you choose, the investment in ERP is significant anyway. And then you also have to factor in the time your own people spend selecting the system, defining processes, training and testing, preparing documentation, etc.
2. Little experience with it
You don't choose a new ERP system every year. For many decision makers, it's the first time or, at most, they've had to do it a few times before, but in a completely different time or business. That means you don't know exactly what to look for and what really matters in your choice.
3. Complexity
ERP software is comprehensive. You use it to support all or many processes in the organization, so it touches various departments and topics. It is not easy to estimate in advance the impact of an ERP system on individual departments and the organization as a whole. And apart from the functionality, there are other issues that make it complicated, such as the infrastructure or interfaces with other systems.
4. Support and acceptance
An implementation is doomed to failure if there is insufficient support within the organization. The company must be behind the choice made at all levels. End users of the system must embrace or at least accept the system. They must work with it on a daily basis and must see benefits in the system.
5. Not easy to switch
If you choose an ERP system, it is not so easy to change direction again. You will not want to repeat the investments you have made. Moreover, the implementation is a considerable burden for the employees and you will want to wait at least a couple of years before starting that again.
6. Difficult to calculate ROI.
You can calculate the Return On Investment of a production machine, for example, fairly accurately. For ERP software, it's a lot trickier. You can calculate where you expect to be more efficient, but many of your calculations will be based on assumptions.
By knowing WHY the choice is difficult you are already halfway there. You can use that knowledge to make things easier for yourself. For example, draw up cases to calculate the ROI, involve the entire company in the selection to create sufficient support and make the jumble of functionalities and features of each system transparent. Then it remains an exciting adventure, but you limit the risks.
Philip van Kemenade is a marketer at Dysel and has daily contact with end users of software.
