Choose ongoing Operational Costs
The fact that most companies build large, fancy ERP systems is something of a paradox
Most companies have a development and implementation time-line of five to ten years – when the same companies agree that their reality is changing so fast that they find it difficult to predict what their business and business model will look like in just a year or two.
It’s crazy to think that we know what the world will look like in ten years – or even in just two. So why do we decide to invest huge sums of money developing and implementing ERP systems in the same way that we always have done?
In such a way that we think we know about the future needs of the business and that we can take everything into account as long as we are thorough enough in the analysis and development?
Does the same ERP system fit a company for life?
When I bought a house many years ago, my kids were small and the need for space was limited.
But I also knew that in 10 to 15 years they would be teenagers and want their own big rooms (preferably with a separate entrance and a private bathroom), and in another 20 years when the kids left the nest, we wouldn’t need big rooms for teenagers any longer but a small guest room instead. So what should i do?
Today, a lot of companies are faced with the same dilemma when buying an ERP system that I was faced with when buying a house:
Should we buy an ERP system for life, or should we move out and move around whenever our needs and desires change?
But as ERP providers, we should advise our customers differently – because another possibility exists.
ERP as a cloud solution is not just hot air
All of our new ERP customers since 2014 have chosen a solution where they only pay for what they use.
As ERP providers, we can’t just go with the flow… we must lead the way.
Read more about this topic in the free book: The Profitable ERP Strategy
I have written a book with input for your ERP strategy, and you can read it for free.
It contains 7 recommendations for a healthy and changeable ERP system:
1. Consider a Cloud Strategy
2. Focus on value and readiness for change
3. Select “best practice” scalable standard functionality
4. Have a strategy for flexible management of master data
5. Select ongoing operating costs rather than large investments
6. Consider a strategy for upgrades where only relevant data is included
7. Select a needs-driven ERP strategy – perhaps with different platforms?