You may know it is time to change your ERP software.
Even so, there is a lot more to select the right fit then compare 4 or 5 software choices.
Software Evaluation Has Complexities And Risks That Cannot Be Overlooked
Software evaluation and implementation is fraught with risks and unpleasant surprises, even for competent IT teams and business executives.
Neglect to investigate the “landmines” and you dramatically increase your chances for a failed implementation…and a career change.
Common Software Risks
Consider that there are over 90 ERP systems to select from.
Yet, over 70% of software projects fall short of expectation or outright fail. EXPENSIVE MISTAKE…And could end the business.
The REAL cost of a new ERP system is a lot more than just the licensing fee. In many cases, implementation can run 3-5 times the cost of the software. This means even a “straight-forward” ERP system for 100 users can easily cost $1 million or more.
Other unforeseen risks include poorly defined requirements, project plan and budget, unrealistic timeframes, unforeseen changes and unanticipated integration to current legacy systems and subsystems.
Key Factors That May Not Be Considered During The Software Assessment Include:
1. Is the software an industry fit or a “force-fit” for you? Understanding the software lineage may help you determine if the fit is industry-specific or a “force fit”.
2. The effort and cost to customize the software to fit your operation (ideally, you want an 80%-90% fit, so what is involved to tailor the software where it is NOT a fit).
3. The size of software community to get additional support and tools once you are live.
4. How easily and cost-effectively can you design reports for current and future needs?
5. How easily and cost-effectively can you modify the software to adapt to your changing business needs?
6. How can you test the final design to see if your users can get their work done, or if you have to hire more staff to compensate for design flaws or overly complicated data entry and work flow?
7. The software provider’s commitment to your version of the software and related tools you will need for reports and subsequent modifications.
8. The software design for ease of use, flexibility for operations and change, and core technology (how long can you rely on support…decades?)
9. Do you have access to the source code and programming tools for software independence?
10. Will your software provider include “surprises” in their implementation and support agreement?
When you work with a software selection expert, the “landmine” and risks are anticipated in advance so you get a software fit that can satisfy your needs for decades, with reliable support and few if any surprises.
Need Help? Call us at *714) 593-0387 or email blosey@source-data.com.
Leave a Reply