Friday, January 16, 2009

Six Major Mistakes Executives Make When Selecting ERP Software: How to Select an ERP software Part 1

Mistake 1 Not RIGHT background work

You need to do a lot of back ground work before selecting a software whether it is going help your organization in achieving the maximum efficiency. Analyzing and then selecting accounting software
takes time and effort but putting in too much would also be confusing to a normal person. You need to define 15-20 major pain points of your organization and just make sure that your software consultant is able to provide you with a solution for it.

Mistake 2: Over expectation of the benefits from an ERP system.

ERP and related functions can save your organization considerable time and effort but it is not going to replace non artificial intelligence, logic or hard work and you need to make sure that you only expect from an ERP solution is automation but not a “magic wand” to cure all your organization problems.
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Mistake 3: Future Benefits versus Present Costs

It’s difficult to calculate possible future benefits in terms of increased productivity, better decision making and other factors after a new system has been successfully implemented and the present costs looks always high in comparision to them BUT not taking the decision as soon as possible is not helping to grow your organizations bottom line in the future. Quick but effective decision making process from the management is important.

Mistake 4: No project ownership

Top management and other key personnel within the organization must be involved in the selection and implementation process. One should never rely solely on a consultant’s recommendations or input. Also, the cheapest consultant is NOT the best consultant and the MOST known product is not the best product for your company.

Mistake 5: Evaluation of local home grown systems and solutions

Even evaluation of a home grown system or solution is the biggest mistake which people make. With glib talking sales people and cheap software engineers and consultants, the local companies manage to sell their products to unsuspecting executives just because it comes cheap. The investment is costly in long terms because of the delays in implementation, changes later in specification, each normal functionality needs to be added to the core system and bugs and issues.

Mistake 6: Thinking ERP software is only for IT technical heads

An ERP software will deliver results in the form of critical need-to-know information to every executive in the company and help your grassroot worker to improve productivity. One must not select a system that won’t provide detailed reporting and other company-wide information and 360 degree view of the data.


To help you further objectively evaluate best ERP and CRM system for your organization, you can always contact us at sales@greytrix.com. We promise NOT to sell a system which is not meant for you!!!

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