Is the choice of ERP software really so difficult?
18 apr

Is the selection of an ERP software really that difficult?

Those who have the choice are spoilt for choice. This is especially true for companies that want to introduce a new ERP system today. Depending on which statistics you look at, there are up to 500 different providers in German-speaking countries. The multitude of offers then hits the prospective customer with full force when he has to choose between them. Selection must operate under pressure.

ERP selection under pressure

However, the reality is that most companies are under pressure when the old software is to be replacedIt is rarely strategic reasons that lead to a new investment. It is more likely to be because the old provider is no longer maintaining the product, or has ceased operations completely, or a company has been taken over. Sometimes the entire expertise leaves the company when an employee leaves. The thought that the service provider who programmed the customised system 10 years ago could "drive up a tree" tomorrow also often causes sleepless nights.

ERP-The all-rounder

Es herrscht also meistens Handlungsdruck und es wird die „allgemeinen Jagt“ ausgerufen. Meistens mehrere, im schlechtesten Fall voneinander unabhängig agierende Personen, fangen an den Markt zu sondieren.  Bei den Gesprächen mit der Liga von Vertriebsmitarbeitern der ERP-Anbieter, die dabei „von der Leine gelassen“ wird, entsteht zunächst einmal folgender Eindruck: Der technologische und funktionelle Fortschritt, seit der letzten Einführung vor 10 Jahren, muss mindestens ein epochaler Quantensprung gewesen sein. Denn plötzlich gibt es keine, auch noch so exotische Anforderung mehr, die eine ERP System nicht bedienen kann. Zumindest hört sich das am Telefon so an. The side effect of this verbal muscle flexing: The lists of requirements and wishes are getting longer and longer as a result.

Then the first round of the "I-can-also-powerpoint" marathon begins. After a select group of employees have seen the same presentation with different logos, they come to a unanimous conclusion: they are undecided. But it doesn't matter, they just wanted to get their bearings.  There will be another Specifications created.

ERP System - Make a wish

Now is the time for "make a wish". Everything that Powerpoint, glossy brochures and supposed specialist articles in supposed specialist publications provide is written point by point in a long Excel list, which leaves so much room for interpretation that each of the providers surveyed can somehow tick the right box.

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No real progress has been made and Perhaps a few basic thoughts should have been given beforehand. A few suggestions here from my side:

  1. Define your needs

    You know your company best! So you should also know which of the most important requirements the new software must fulfil. Determine which core processes you have and which part the ERP system should fulfil. These are the first criteria for eliminating the first providers that do not fulfil these requirements.
  2. Pay attention to expandability and future-proofing

    You will probably be using an ERP system for the next 10 years. It is more than likely that new developments in the market will take place during this period. The system should be flexible enough to respond to the passage of time. At the same time, it should be possible to visualise the future of the provider. Make enquiries! What does the software development plan look like?
    Critically scrutinise the partner's business policy. Is the product they are offering you really part of their core business? Do they have the substance to survive the competition in the industry over the next 10 years? Is he mainly characterised by buying customers through takeovers or is it a long-term strategy to focus on customer requirements? Remember that you are likely to grow. The software should be able to do this with you.

  3. Define internationalisation as a must

    In a world defined by globalisation, the ability of business software to move and network in this environment is an absolute must. Be it the new branch in China or the business partner in the USA. The ability to Business processes A new system must be able to map data across national borders.
  4. See integration as an opportunity

    For decades, ERP manufacturers have sung the praises of complete replacement and this means that only if all the software packages in the company are replaced by one large software package, can integrated software solutions be realised. processes be guaranteed. Is this really still the case? Ask yourself which applications are still doing their job very well, or whether it is not better to use specialised software for a specific process. There are now several providers who technology on board, to integrate such packages without having to go to huge expense for interfaces.
  5. Ask about the standard and its adaptability

    standard software maps core processes of an industry. That is the duty.  However, the key is to be able to adapt these processes to your specific requirements. And without changing the logic of the programme and thus turning every update of the programme into an expensive adventure. But don't forget: sometimes you have to make sacrifices in terms of attention to detail to achieve a high level of flexibility. A balance must be found here. Don't be tempted by squaring the circle. If a provider tries to offer you standard software as the basis for a Individual development to sell, then you run the risk of bringing the disadvantages of both worlds into the house.
  6. Look for a partner and not a vassal

    That Consulting firm or the software partner already have both in their name. There should be a partner who can advisebecause he may already have experience from many previous projects that you do not have. The human component in an ERP implementation project should not be underestimated and it can happen that the chemistry between people is simply not right and they have to be replaced. There is almost always a point in ERP projects where tensions arise. Here you need people who can discuss and not yes-men.
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