ERP selection often presents decision-makers with high demands and challenges
The selection, design and implementation of an ERP system is a critical undertaking that presents any company with a number of complex challenges. Because an ERP project is not part of everyday business, it occupies a special position for both the organization and the people involved. The implications of such a project are profound and can have a significant impact on a company's strategic, financial and operational performance.
These far-reaching consequences make the decision about an ERP project a strategic milestone that should be carefully considered and planned. Errors or inaccuracies can quickly develop into serious problems that endanger the company's success. On the other hand, a successfully implemented ERP system offers the opportunity to significantly optimize corporate processes, strengthen competitiveness and make the company fit for the future.
Given this duality of risk and opportunity, preparing for and executing an ERP project is no easy undertaking. It is therefore essential for managers and decision-makers to address the potential pitfalls in advance. The following section highlights the top ten challenges and issues that typically arise in the context of an ERP project. Knowledge of these aspects provides important guidance and helps to minimize the risk of wrong decisions.
1. high workload
Selecting a new ERP system is a deep process that requires significant resources and time from decision makers. This includes identifying business requirements, preparing RFPs, conducting vendor presentations, and evaluating solution demos. The pre-existing commitments of decision makers can lead to overload as they manage both their regular duties and the complexities of ERP selection.
2. strong time pressure
Business operations are changing rapidly today, and companies are striving to adapt to changing market conditions. As a result, the demand for rapid ERP implementation can be high in order to gain competitive advantage or benefit from technological innovation. This high time pressure can lead decision makers to make hasty decisions without enough time to thoroughly evaluate the different solutions.
3. lack of market knowledge
The market for ERP systems is saturated with a variety of vendors, features and technologies. Decision makers must have in-depth market knowledge to understand and evaluate the various options. The lack of up-to-date information on the latest trends, industry-specific solutions and emerging technologies can mean that selection decisions are not optimally aligned with business requirements.
4. internal forces of inertia
The introduction of a new ERP system can lead to changes in existing ways of working and processes. Employees and departments accustomed to established processes may be reluctant to adopt innovations. This internal resistance can affect acceptance of the new system and lead to delays in implementation as time is needed for training and adjustments.
5. lack of personnel
Evaluating an ERP system requires cross-sectional knowledge in areas such as IT, business processes, finance and project management. However, it can be difficult for companies to find experts with the required expertise due to limited resources or a lack of specialists. Without sufficient support, decision makers struggle to adequately manage the comprehensive aspects of ERP selection.
6. lack of methodological knowledge
The selection of an ERP system requires a structured methodology, ranging from requirements elicitation and the creation of evaluation criteria to the analysis of demos and test phases. Lack of knowledge about best practices can lead to unstructured processes where important aspects can be overlooked.
7. intransparency about standardization
Companies often seek greater standardization of processes and data to ensure efficiency and consistency. Selecting an ERP system that supports this standardization can be challenging. It requires a detailed analysis of requirements and a comparison with available system options to ensure that the selected solution achieves the desired standardization goals.
8. no manufacturer contacts
Building and maintaining relationships with ERP manufacturers and vendors is critical to obtaining relevant information, product demos, and quotes. Companies that do not have established relationships with vendors may have difficulty gaining direct access to the latest information and customized solutions.
9. risk of endangering the operation
Implementing a new ERP system poses potential operational risks, including possible interruptions or outages. Decision makers must ensure that implementation is seamless to minimize any negative impact on ongoing business operations. This requires careful planning, testing and training.
10. no independent contact persons
During the ERP selection process, there may be a lack of independent experts who can provide objective advice and insight. This could increase uncertainty as decision makers are left on their own and may have difficulty making an informed decision.
How can companies meet these challenges?
These challenges make it clear that the selection of an ERP system is a complex task that requires not only technical knowledge, but also strategic thinking and interpersonal skills. The ERP pre-project SPARK of ICB GmbH combines these aspects and can eliminate the presented challenges for companies.
Discover our key strategies for the successful selection of the optimal ERP system now! Our comprehensive whitepaper guides you through the business requirements and challenges in the run-up to ERP selection. In addition, we highlight the strengths of cloud-based ERP systems and describe the importance of the SPARK ERP pre-project, which provides decision-makers with a clear basis for decision-making during ERP selection.
Download our whitepaper here now and take the first step towards a future-proof ERP decision!
