ERP systems - what you need to know

ERP systems – what you need to know

The other day, while researching ERP systems and to see what our competitors are up to I came across a very interesting article. As we all know, ERP is a concept that serves as a benchmark for businesses to assist in the planning and maintaining of their business strategies. The implementation costs of these systems are normally astronomical. This said, when you have a system tailor made to suit your specific needs, this system can show a return on your investment and all the money spent on this can be seen as money well spent.

So back to this article I read: A gentleman by the name Dennis Gaughan did a bit of research on four major ERP and IT solutions vendors and his findings were quite bleak, to say the least. A lot of time and effort goes into finding the right ERP system. This system should be easily integrated into your business. A lot of time, manpower and care should be invested while implementing this system into your business. Following below are some of his findings. This might just be the tips you need before you decide on the right ERP system for your business.

Products that can’t work together.

Some service providers’ products do not work well together. Some companies push for their ERP systems to get implemented, only to discover later that this system has minimal integration capabilities which in the long run cannibalise all your other existing systems. Some companies do not disclose the roadmap of their implementation either, resulting in more than three quarters of the profits being earned by maintenance work alone.

Some companies might want to take over your IT strategy.

Some companies’ main business is to sell consulting services. Account managers try to take control over your company’s IT strategy so that they can push more of their own products into your business. Dennis suggests that a shared or partner approach should be taken between the service provider and the business.

Confusing pricing strategies.

A lot of companies struggle with figuring out the billing and licensing of their service provider’s products and services. The major catch is unusual billing methods that confuse the customer. A simple example of this is when an upgrade gets done on an existing system, no new policies get drawn up and customers still pay full price for an add on product where it could have been offered at a discounted price. What is recommended is that you as a client demand clear project plans, timelines and methodologies. This will ensure no nasty surprises come month-end.

I never saw the ERP market as so competitive, well maybe not competitive, but unclear when it comes to helping prospective buyers choose the right system for their business. I have always been of the mind-set that people and feelings come first when doing any business transaction. And this is no different. It is, after all, people that will be working on these systems. It is essential that account managers or the sales people be honest in their dealings when trying to sell their products to prospective clients. After all, honesty is the best policy.