Project Risks
Switch to a new ERP System: Not just when the
Poisoned Chalice is empty!
Poisoned
During ERP selection and implementation, most companies traditionally tried to do everything they could to minimize the costs. Now, more and more companies are realizing that reliable data, customer-centric business processes and the right mindset have a strong impact on their bottom line. However, cost-oriented thinking is often still the main focus - especially in SMEs. For the same reason, companies often delay the necessary switch to a new ERP system. This can cause problems…
Empty the Poisoned Chalice to the Bottom!
Companies that use outdated software are often dissatisfied. Too much complexity in the application, lack of innovation and insufficient flexibility are among the widespread complaints. Out of necessity, end users switch to Excel or Access solutions. The consequences are predictable. However, it is astonishing how many companies still stick to such systems. “The investment has not yet been written off” seems to be a more important factor than decreasing delivery reliability, loss of customers and increasing downtime costs. Often companies empty this poisoned chalice to the bottom before they start looking for a better solution.
ERP Selection: the Cost Factor usually takes Center Stage
The cost factor also continues to play a major role when choosing a new ERP system. A potential vendor is rejected without hesitation due to an initial price difference of three percent, even though it offers a 30 percent better alternative in terms of innovation and continuity.
What if…?
Do you work in a company that does this? Then try to remember the moment when you chose your current solution. Do you remember which systems and vendors were on your shortlist? Imagine where you would be today with these solutions. You might then come to the conclusion that if you had made a different decision, there would not be a need to completely replace the system today. That there are subsequent versions (upgrades) with functionality that you would urgently need now. That the other partner has kept its promise to actively invest in know-how about your industry.
ERP Selection: Protect yourself from
a Discount-related Amnesia!
a
Your ERP System no longer meets your Requirements? Don’t hesitate too long!
Even if you realize that, from today’s perspective, you did not choose the most suitable ERP solution at the time and that another solution would have been the better choice: do better now. If your current ERP system no longer meets your requirements don’t hesitate too long to change the solution, but make a clear investment decision.
The Burning Platform
The “Burning Platform” phenomenon can also get in your way under certain circumstances. There will come a day when the vendor stops actively supporting your solution, just as Microsoft ended support for the Windows 95 operating system, for example. Another reason why you should not hold on to your outdated solution for too long.
Longer Usage and Amortization Period: Your ERP System is an Investment!
If you no longer view ERP software as a mere cost factor, but as an investment, you also create a different perspective on the challenge of selection. The results of using your new software system, the number of years you can use and depreciate the system, and the ability to extend the solution to future generations suddenly seem much more important. If you think this way, there’s a good chance that you’ll choose a more effective and profitable solution. And that you tackle the necessary ERP change promptly, instead of waiting forever.
