The first Challenge of your Project
Finding the right ERP Vendor 🤥 Lies (do not) have
long Noses
To identify the right ERP vendor, many companies draw up extensive lists with countless questions. In order for a vendor to be shortlisted, a high score is necessary. However, companies often think one-dimensionally and only want to hear a “yes” to their questions - without differentiating more precisely. This gives potential vendors room to respond creatively. Does that really make sense? Who is fooling whom here? 🤔
You can see Pinocchio’s Lies on his Nose
“As soon as he told the lie, his nose, which was already long, immediately grew two fingers longer.” Pinocchio’s nose immediately revealed that he was telling fake stories. When selecting an ERP vendor, false promises and overstatement are not quite so easy to recognize.
The Dilemma of ERP Vendors: Overambition vs. Conscientiousness
Ideally, questionnaires and requests for information (RFI) in the context of ERP selection address a wide range of price and performance information, which can be used to narrow down the selection of potential vendors.
However, many ERP vendors find themselves in a dilemma. If they fill out RFIs honestly, they run the risk of being eliminated at an early stage. After all, the competitors can easily enter “yes” everywhere - even if the answer is actually “no”. It’s the classic contrast between excessive ambition and conscientiousness.
In addition, vendors answer each individual question separately, which means that a “yes” to question 245 is not necessarily possible at the same time as a “yes” to question 722. Just think about it… And does this long list of questions even address the real business problems in your company?
Overselling is usually recognized too late
So what added value do such requests have for you at all? Choosing the vendor with the highest score seems logical and right. However, if it turns out during implementation that your vendor has been overselling and has presented its solution a little too perfectly, it is already too late. Because then you are already contractually bound to a vendor who “didn’t quite understand” you in the initial phase.
ERP Selection: Protect yourself from
a Discount-related Amnesia!
a
How to use the RFI to find the Vendor that really harmonizes with you
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First of all, ask the right questions! In addition to questions about the functions and features of the software, support and references from customers are important aspects that you should address. The global availability of the solution may also be relevant for you.
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When sending out an RFI, always request that the responses become part of the contract. This will certainly motivate your potential vendors to respond very accurately.
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Leave the vendors more room for differentiated answers instead of giving them only the options “yes” and “no ”. The issue is not that simple!
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Give them the chance to suggest a different approach or a refreshing, innovative perspective. But on the basis of a limited number of really business relevant questions. Maybe 200 questions maximum - 300 if you have to.
Honesty lasts the longest… and Lies have (no) long noses
If you proceed in this way, vendors can also demonstrate their skills as genuine sparring partners. Isn’t that exactly what most companies are looking for? So stop fooling each other!
Ultimately, an honest vendor is much more valuable to you than one who simply answers “yes” to all your questions without thinking about the consequences. At first, this is very easy for the potential vendor because, unlike Pinocchio, you can’t tell by looking at their nose that they’ve fibbed a little. In the long term, however, this is absolutely not conducive to successful cooperation - and not for either of the contracting parties!
