The Top ERP Readiness Assessment Complications
Executive Summary
- ERP readiness assessment is often a process that just declares the company is ready for an ERP system.
- This article explains the top mistakes we have seen.
Introduction
ERP readiness assessments are fraught with complications. In this article, we cover these complications and how we surmount them.
Our References
See our references for this article and related articles at this link.
Complication #1: Selecting a Conflicted ERP System Selection Advisor
This is normally not a mentioned item. However, there is a greater probability that the company will select a financially biased ERP system selection advisor for their ERP readiness assessment that has financial relationships that it does not disclose to you. This means that they will most often rig the ERP readiness assessment to state that the company is ready for an ERP system.
Complication #2: Not Questioning if an ERP System is Necessary
Many companies are poor fits for ERP systems, but companies will almost never hear of this during a readiness assessment.
Complication #3: Selecting a “Spoken For” Software Selection Firm
One company listed the following description of its software selection or ERP readiness assessment.
Selecting an Enterprise Resource Planning (ERP) software is one of the biggest decisions your organization will take on as it grows and changes. This is because a Microsoft Dynamics 365 based ERP system provides financial, human resources/payroll, project accounting, procurement, supply chain management, manufacturing, warehouse management, transportation management, service management and much more including business intelligence capabilities across your entire enterprise. Selecting a new Enterprise Resource Planning (ERP) system is a major decision for organizations due to all the hundreds if not thousands factors that must be considered. With more than 500+ years combined Microsoft ERP experience our Microsoft Dynamics 365 teams, will do their leg work to understand all your business needs to help select the right ERP and accounting software. They help you walk through the budgeting process, building a realistic timeline, and inform you about the different support and licensing options available for your users. – Avantiico
What is the logic being presented here? Software selection is “important” — and Avantiico can walk you through a software selection and “do the leg work,” but they are a Microsoft Dynamics implementer and focus on this software?
Take a guess what Avanticco will recommend from an ERP readiness assessment? The result will be a recommendation for Microsoft Dynamics.
Conclusion
The ERP industry is designed to get customers “on the ramp” to implement ERP systems and extract the most out of them. The ERP readiness assessment is just a fake process where the advisor states that the company is ready for an ERP system. This extractive model is one reason that the ROI on ERP systems is typically so low. This does not have to be the case, and there are many ways of changing this.