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Top Ten Most Common ERP Evaluation Mistakes
- Failure to identify your business drivers, IE, The top 15 to 20 items in your enterprise that a new system must address and provide a workable solution..
- Creating a list of 200 top issues and items that you expect the system to solve. Obviously the list must be much smaller.
- Not fully understanding that “What you do in your business is different” from “How you do it”, a clear separation must be made between Processes and Procedures.
- A failure of not bench marking your critical metrics before you begin the implementation, IE, inventory turns, customer delivery metrics, cost of quality, supplier performance, quality errors, asset utilization, actual cost of product versus selling price. And more………..
- Under budgeting for the ERP Project Implementation, and attempt to make the Project budget numbers work out by reducing User training. The result being that users will revert back to the old way of doing their job and benefits will lag… Or never be realized!
- Selecting an ERP system that is not in your niche market, IE. ERP systems functionally requirements in a Formula based manufacturing company are different than functionally requirements in a Medical Device or Engineering make to Order environment.
- Selecting an ERP system because the financials, A/P, A/R, and G/L are all from the same supplier therefore losing key niche functionally your business must have to be successful…
- Failure to understand that ERP systems technology has limitations, if you do not see it demonstrated before you purchase… Very bluntly, “don’t be disappointed when you don’t see it later”…
- A lack of total project planning, IE, the Master Project should be to (A) start the election process with an end date, (B) completion of the selection process begins the implementation phase. The two should be seamless. This is a Project; therefore it should have a beginning and ending date. Selecting and Implementing ERP is not a continuous “Process”.
- Failing to understand that you are the buyer, therefore buy the best ERP system for your company; do not be sold a quick fix.