On the software side, look for a vendor that offers a good "fit" with your business needs. Most ERP vendors have a specific set of target markets that they pursue. The market is often based on customer size, type of company (for example, process or discrete manufacturing), or vertical industry. So, seek out vendors selling products appropriate for your particular company.

Implementation is the source of many ERP horror stories you read about. Automating core processes of an entire company is naturally going to touch points across the company. That's the real driver of complexity.

Be sure not to take on a larger project than you can absorb. The ERP sales person may suggest a perfect solution, but if you do not have the resources to allocate to the project, then it will fail. Likewise, the change management aspects of an implementation are extremely significant, and your company must be ready to handle that change. Handled properly, ERP can be a boon to your business, but there are risks.

This is is a short answer to a complicated question, but I hope it's helpful. If you want more detail, then just respond and I will try to respond to your particular concerns.

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Marcia Nita Doron

Posted on Aug. 9, 2010

Recommended by:
Jeff Dix

Hi Kyle,

Here's a link to our blog post on exactly that topic - the pitfalls to watch out for when selecting and implementing an ERP system:

http://www.erpsoftwareblog.com/2010/03/selecting-an-erpaccounting-system-%e2%...

I hope this is helpful.

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Jeff Dix

ERP Project Leader, JAFRA Cosmetics International

Posted on Aug. 6, 2010

I agree with all that Michael said above. Most problems begin with a bad fit between the customer and the software and services package purchased. Your software needs to fit your industry, the way you do business, and the resources available to support the system. The implementation services provider's methods must fit with your company's available resources - both time and people.

ERP projects are not comparable to committing suicide unless the business does not do its homework - anyone who tells you otherwise is selling something. Mid-sized companies go live on new ERP systems every day without killing their business. Many are very happy with the projects that delivered the new system.

I would also be happy to offer more specific guidance to you if you would like to contact me directly.

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Rushabh Mehta

Founder, ERPNext

Posted on Sept. 2, 2010

Hi Kyle,

I would like you to go a step further, what are you expectations from an ERP?

Even though every business has similar process but they have their own quirks and history. Maybe your first accountant was really good so you have great accounting processes in place but your sales manager was not that good and the sales team is disorganized.

After that find out about how much readiness for change is there in your company. Also evaluate your IT support team. Once you know what you want, find out how much you are willing to invest in the ERP.

There are no "catches" really, its just understanding the right ERP company for yourself. There are all kinds of companies with different cost and risk profiles. So if your company is not risk friendly, do not try a start-up. If your company is young, then don't go for an established old-world ERP!

Hope this was helpful!

cheers,

Rushabh

www.iwebnotes.com

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-2

Steve Christensen

Chairman/CEO, Babbleware Inc.

Posted on Aug. 4, 2010

Looking for an ERP system is the pitfall. Fax machines were good things to buy once too...there are better ways to improve your business than commit suicide with an ERP implementation.

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