6 common mistakes business make when selecting erp software
DESCRIPTION
This white paper covers the 6 big mistakes that business make when evaluating and implementing ERP software.TRANSCRIPT
6 Common Mistakes Businesses
Make When Selecting ERP Software
A Guide to Selecting the Right ERP Software for Business Executives
6 Common Mistakes Businesses Make When Selecting ERP Software Page 2 of 13
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Table of Contents
Introduction 3
Overview 4
1 Donrsquot Assume Itrsquos Going to be Business as Usual 5
2 Donrsquot Avoid Proper Planning 6
3 Donrsquot Choose the Wrong Technology Partner 7
4 Donrsquot Underestimate Implementation Time or Resources 8
5 Donrsquot Exclude Employees from Implementation Decisions 9
6 Donrsquot Neglect Maintenance amp Upgrades 10
Conclusion 11
About e2b teknologies 12
Sources 13
6 Common Mistakes Businesses Make When Selecting ERP Software Page 3 of 13
4403524700 | wwwe2benterprisecom share this white paper
If yoursquore reading this white paper then chances are your ERP
selection will be a success Not because of the valuable
information in herehellip it is valuablehellip but because yoursquove made an
effort to make educated decisions about your selection and
implementation Your desire to learn how to take the right course
of action is evidence in itself that you will do it right As you will
come to learn not many business leaders do what yoursquore doing
Many jump into the selection process without doing research and
come out with a system they have to eventually abandon So
congratulations Yoursquore off to a great start
6 Common Mistakes Businesses Make When Selecting ERP Software Page 4 of 13
4403524700 | wwwe2benterprisecom share this white paper
Overview Software selection and implementation can be one of the most costly and time consuming projects that
your company embarks on Thatrsquos why itrsquos imperative your ERP selection process is done right You need
to plan for every step of this process and have complete understanding of things like your budget time
required people involved and resources required Failure to evaluate these important factors could
mean ditching your final ERP selection and starting the process all over again after just a few years You
need to find a system thatrsquos strong enough to handle your business for many years while also dynamic
enough to grow as your company grows
It doesnrsquot matter if yoursquore a multi-billion dollar organization with locations spread out globally or if
yoursquore a smaller company with only a handful of employees your ERP system needs to provide
functionality for all of your business processes ndash from financials and HR to distribution and your supply
chain A good ERP system should streamline all of these processes and more from one single database
But be careful because many solutions that call themselves ERP really arenrsquot
Since ERP systems entered the marketplace around 1990 there have been myriad software providers
Some create powerful full-scale ERP systems but others bill their solution as an ERP when in reality
theyrsquore only a small part or extension of a full system For a business going through the ERP selection
process this can make things very complicated And even when you do find a system with full ERP
functionality it still might not be the right fit for your industry or your company This is why so many
implementations end up being disastrous ndash because quick and uninformed decisions were made during
the selection phase
How many ERP implementations blow up in failure Well in 2001 Robbins-Gioia did a survey [sup1] of 232
companies in multiple industries about the perceptions of their ERP implementation What they found
was that 51 viewed their implementations as unsuccessful One decade later Panorama Consulting
Solutions did a similar report [sup2] But what they found was that 72 of ERP system implementations fail
So what happened in 10 years that brought the failure rate from 51 to 72 This could depend on
several factors but what it really boils down to is the growing need for ERP systems in businesses and a
lack of qualified experts helping these companies throughout their selection and implementation
processes
Success 49Failure
51
2001 ERP Implementations
Success 28
Failure 72
2010 ERP Implemantations
6 Common Mistakes Businesses Make When Selecting ERP Software Page 5 of 13
4403524700 | wwwe2benterprisecom share this white paper
When it comes to ERP comparison and implementation the same mistakes get repeated over and over
This white paper will aid in your ERP selection process and shed light on some of the fatal mistakes that
could undermine not only your final decision but possibly your entire company This white paper will
walk you through six of the biggest mistakes you can make in your ERP decision process and show you
how you can avert them
1 Donrsquot Assume Itrsquos Going to be Business as Usual No matter what organization or industry you work in your business processes and environment will
change ndash if not a conscious transformation then unwilled and unexpected Itrsquos much better to create
your own change in your business rather than have unexpected change create your business for you
The best time to re-evaluate your business processes is when yoursquore about to implement a new business
system Especially a system as multifaceted as ERP
Many businesses get stuck in the ldquothatrsquos the way wersquove always done itrdquo mind-trap They refuse to give
up their old tactics This compromises the ability of a new business system to really bolster your
company In reality businesses should be using their ERP implementation to reassess operating
processes and address how a new system can best work with their needs In most cases business
software is only effective if itrsquos backed by a strong business model Use your ERP selection to learn what
is and isnrsquot working at your company because itrsquos much easier to make these changes now than it is
when you already have a system in place
According to the report by Lakelet Advisory Group [sup3] the top reason that ERP implementations fail is
due to the inability to change processes
36
24
17
11
9
3
ERP Implementations Fail Becausehellip
Inability to changeprocess
Senior Management
Customization
Training
The implementation wasIT based
Wrong solution selected
6 Common Mistakes Businesses Make When Selecting ERP Software Page 6 of 13
4403524700 | wwwe2benterprisecom share this white paper
2 Donrsquot Avoid Proper Planning Planning should be one of the most important steps in your ERP selection process ERP is a very costly
investment and it takes time to implement successfully Planning properly from the start can ensure
that yoursquore spending less money and time on your project More importantly a strong plan will make
sure your final ERP selection is the right fit for your business Some factors to consider in your planning
stage include
bull Establishing your budget and your ability to afford the investment If the investment amount comes
out higher than you feel comfortable with the software provider may offer a Software as a Service
(SaaS) solution that allows you to essentially rent access to the software in the cloud usually on a
month to month basis decreasing your need for up-front cash
bull Assigning the selection team and who will be working on this project Be sure to identify the executive
sponsor and all critical stakeholders
bull Classifying the areas of your business you want to improve Also note areas in which you already do
well so the solution provider can address your most important needs
bull Identifying your staffs critical business
issues and needs The list doesnrsquot need to be
a 200-page document with 10000
requirements Even a checklist can help keep
your team focused on solving the problems
that are important to you
bull Defining selection criteria (Request for
Proposal or RFP) for the solution and the
provider partnership Criteria such as long-
term financial stability in-depth knowledge
of your industry investment in research and
development implementation process and
technology vision are all important factors to
consider
As part of your planning phase make sure to develop a timeframe in which you want specific tasks
completed Itrsquos useful to document all of the evaluation activities you plan on completing during this
phase such as discovery sessions demos site visits meetings and so forth Then set a tentative date
for the completion of each task Planning during your ERP selection process is no different than planning
for any large decision you need to establish what your goals are and then lay a blueprint for how each
goal is going to get accomplished
6 Common Mistakes Businesses Make When Selecting ERP Software Page 7 of 13
4403524700 | wwwe2benterprisecom share this white paper
3 Donrsquot Choose the Wrong Technology Partner Would you undergo neurosurgery from a dentist Of course not Much like your body a business is like
a living breathing organism composed of several individual parts that work together A change of ERP
system can be much like neurosurgery because your ERP is the brain of your organization managing
intelligence over all of the processes that make your business function
If you have a problem or inefficiency within your company software can act as the cure In this sense a
technology partner is much like a doctor If you choose a technology partner that doesnrsquot understand
your industry they wonrsquot be able to properly understand what your needs are and they certainly wonrsquot
understand how to fit an ERP system to your business
You need to ask several questions of your technology partner to make sure yoursquore getting the treatment
you require questions such as
How many of their other customers are in your industry
How long has the company been serving industries like yours
Who are the key people who will implement your software system and what is their
background
What are their customers saying about them
How many of their customers have had sustaining success with their ERP software after their
implementation
Make a list that defines specific attributes that are important to your company and you feel should be
represented by your technology partner This list should highlight values that will illustrate your
partnerrsquos competence working with your industry your company size your organizational structure
your corporate culture and so forth
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
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Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 2 of 13
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Table of Contents
Introduction 3
Overview 4
1 Donrsquot Assume Itrsquos Going to be Business as Usual 5
2 Donrsquot Avoid Proper Planning 6
3 Donrsquot Choose the Wrong Technology Partner 7
4 Donrsquot Underestimate Implementation Time or Resources 8
5 Donrsquot Exclude Employees from Implementation Decisions 9
6 Donrsquot Neglect Maintenance amp Upgrades 10
Conclusion 11
About e2b teknologies 12
Sources 13
6 Common Mistakes Businesses Make When Selecting ERP Software Page 3 of 13
4403524700 | wwwe2benterprisecom share this white paper
If yoursquore reading this white paper then chances are your ERP
selection will be a success Not because of the valuable
information in herehellip it is valuablehellip but because yoursquove made an
effort to make educated decisions about your selection and
implementation Your desire to learn how to take the right course
of action is evidence in itself that you will do it right As you will
come to learn not many business leaders do what yoursquore doing
Many jump into the selection process without doing research and
come out with a system they have to eventually abandon So
congratulations Yoursquore off to a great start
6 Common Mistakes Businesses Make When Selecting ERP Software Page 4 of 13
4403524700 | wwwe2benterprisecom share this white paper
Overview Software selection and implementation can be one of the most costly and time consuming projects that
your company embarks on Thatrsquos why itrsquos imperative your ERP selection process is done right You need
to plan for every step of this process and have complete understanding of things like your budget time
required people involved and resources required Failure to evaluate these important factors could
mean ditching your final ERP selection and starting the process all over again after just a few years You
need to find a system thatrsquos strong enough to handle your business for many years while also dynamic
enough to grow as your company grows
It doesnrsquot matter if yoursquore a multi-billion dollar organization with locations spread out globally or if
yoursquore a smaller company with only a handful of employees your ERP system needs to provide
functionality for all of your business processes ndash from financials and HR to distribution and your supply
chain A good ERP system should streamline all of these processes and more from one single database
But be careful because many solutions that call themselves ERP really arenrsquot
Since ERP systems entered the marketplace around 1990 there have been myriad software providers
Some create powerful full-scale ERP systems but others bill their solution as an ERP when in reality
theyrsquore only a small part or extension of a full system For a business going through the ERP selection
process this can make things very complicated And even when you do find a system with full ERP
functionality it still might not be the right fit for your industry or your company This is why so many
implementations end up being disastrous ndash because quick and uninformed decisions were made during
the selection phase
How many ERP implementations blow up in failure Well in 2001 Robbins-Gioia did a survey [sup1] of 232
companies in multiple industries about the perceptions of their ERP implementation What they found
was that 51 viewed their implementations as unsuccessful One decade later Panorama Consulting
Solutions did a similar report [sup2] But what they found was that 72 of ERP system implementations fail
So what happened in 10 years that brought the failure rate from 51 to 72 This could depend on
several factors but what it really boils down to is the growing need for ERP systems in businesses and a
lack of qualified experts helping these companies throughout their selection and implementation
processes
Success 49Failure
51
2001 ERP Implementations
Success 28
Failure 72
2010 ERP Implemantations
6 Common Mistakes Businesses Make When Selecting ERP Software Page 5 of 13
4403524700 | wwwe2benterprisecom share this white paper
When it comes to ERP comparison and implementation the same mistakes get repeated over and over
This white paper will aid in your ERP selection process and shed light on some of the fatal mistakes that
could undermine not only your final decision but possibly your entire company This white paper will
walk you through six of the biggest mistakes you can make in your ERP decision process and show you
how you can avert them
1 Donrsquot Assume Itrsquos Going to be Business as Usual No matter what organization or industry you work in your business processes and environment will
change ndash if not a conscious transformation then unwilled and unexpected Itrsquos much better to create
your own change in your business rather than have unexpected change create your business for you
The best time to re-evaluate your business processes is when yoursquore about to implement a new business
system Especially a system as multifaceted as ERP
Many businesses get stuck in the ldquothatrsquos the way wersquove always done itrdquo mind-trap They refuse to give
up their old tactics This compromises the ability of a new business system to really bolster your
company In reality businesses should be using their ERP implementation to reassess operating
processes and address how a new system can best work with their needs In most cases business
software is only effective if itrsquos backed by a strong business model Use your ERP selection to learn what
is and isnrsquot working at your company because itrsquos much easier to make these changes now than it is
when you already have a system in place
According to the report by Lakelet Advisory Group [sup3] the top reason that ERP implementations fail is
due to the inability to change processes
36
24
17
11
9
3
ERP Implementations Fail Becausehellip
Inability to changeprocess
Senior Management
Customization
Training
The implementation wasIT based
Wrong solution selected
6 Common Mistakes Businesses Make When Selecting ERP Software Page 6 of 13
4403524700 | wwwe2benterprisecom share this white paper
2 Donrsquot Avoid Proper Planning Planning should be one of the most important steps in your ERP selection process ERP is a very costly
investment and it takes time to implement successfully Planning properly from the start can ensure
that yoursquore spending less money and time on your project More importantly a strong plan will make
sure your final ERP selection is the right fit for your business Some factors to consider in your planning
stage include
bull Establishing your budget and your ability to afford the investment If the investment amount comes
out higher than you feel comfortable with the software provider may offer a Software as a Service
(SaaS) solution that allows you to essentially rent access to the software in the cloud usually on a
month to month basis decreasing your need for up-front cash
bull Assigning the selection team and who will be working on this project Be sure to identify the executive
sponsor and all critical stakeholders
bull Classifying the areas of your business you want to improve Also note areas in which you already do
well so the solution provider can address your most important needs
bull Identifying your staffs critical business
issues and needs The list doesnrsquot need to be
a 200-page document with 10000
requirements Even a checklist can help keep
your team focused on solving the problems
that are important to you
bull Defining selection criteria (Request for
Proposal or RFP) for the solution and the
provider partnership Criteria such as long-
term financial stability in-depth knowledge
of your industry investment in research and
development implementation process and
technology vision are all important factors to
consider
As part of your planning phase make sure to develop a timeframe in which you want specific tasks
completed Itrsquos useful to document all of the evaluation activities you plan on completing during this
phase such as discovery sessions demos site visits meetings and so forth Then set a tentative date
for the completion of each task Planning during your ERP selection process is no different than planning
for any large decision you need to establish what your goals are and then lay a blueprint for how each
goal is going to get accomplished
6 Common Mistakes Businesses Make When Selecting ERP Software Page 7 of 13
4403524700 | wwwe2benterprisecom share this white paper
3 Donrsquot Choose the Wrong Technology Partner Would you undergo neurosurgery from a dentist Of course not Much like your body a business is like
a living breathing organism composed of several individual parts that work together A change of ERP
system can be much like neurosurgery because your ERP is the brain of your organization managing
intelligence over all of the processes that make your business function
If you have a problem or inefficiency within your company software can act as the cure In this sense a
technology partner is much like a doctor If you choose a technology partner that doesnrsquot understand
your industry they wonrsquot be able to properly understand what your needs are and they certainly wonrsquot
understand how to fit an ERP system to your business
You need to ask several questions of your technology partner to make sure yoursquore getting the treatment
you require questions such as
How many of their other customers are in your industry
How long has the company been serving industries like yours
Who are the key people who will implement your software system and what is their
background
What are their customers saying about them
How many of their customers have had sustaining success with their ERP software after their
implementation
Make a list that defines specific attributes that are important to your company and you feel should be
represented by your technology partner This list should highlight values that will illustrate your
partnerrsquos competence working with your industry your company size your organizational structure
your corporate culture and so forth
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 3 of 13
4403524700 | wwwe2benterprisecom share this white paper
If yoursquore reading this white paper then chances are your ERP
selection will be a success Not because of the valuable
information in herehellip it is valuablehellip but because yoursquove made an
effort to make educated decisions about your selection and
implementation Your desire to learn how to take the right course
of action is evidence in itself that you will do it right As you will
come to learn not many business leaders do what yoursquore doing
Many jump into the selection process without doing research and
come out with a system they have to eventually abandon So
congratulations Yoursquore off to a great start
6 Common Mistakes Businesses Make When Selecting ERP Software Page 4 of 13
4403524700 | wwwe2benterprisecom share this white paper
Overview Software selection and implementation can be one of the most costly and time consuming projects that
your company embarks on Thatrsquos why itrsquos imperative your ERP selection process is done right You need
to plan for every step of this process and have complete understanding of things like your budget time
required people involved and resources required Failure to evaluate these important factors could
mean ditching your final ERP selection and starting the process all over again after just a few years You
need to find a system thatrsquos strong enough to handle your business for many years while also dynamic
enough to grow as your company grows
It doesnrsquot matter if yoursquore a multi-billion dollar organization with locations spread out globally or if
yoursquore a smaller company with only a handful of employees your ERP system needs to provide
functionality for all of your business processes ndash from financials and HR to distribution and your supply
chain A good ERP system should streamline all of these processes and more from one single database
But be careful because many solutions that call themselves ERP really arenrsquot
Since ERP systems entered the marketplace around 1990 there have been myriad software providers
Some create powerful full-scale ERP systems but others bill their solution as an ERP when in reality
theyrsquore only a small part or extension of a full system For a business going through the ERP selection
process this can make things very complicated And even when you do find a system with full ERP
functionality it still might not be the right fit for your industry or your company This is why so many
implementations end up being disastrous ndash because quick and uninformed decisions were made during
the selection phase
How many ERP implementations blow up in failure Well in 2001 Robbins-Gioia did a survey [sup1] of 232
companies in multiple industries about the perceptions of their ERP implementation What they found
was that 51 viewed their implementations as unsuccessful One decade later Panorama Consulting
Solutions did a similar report [sup2] But what they found was that 72 of ERP system implementations fail
So what happened in 10 years that brought the failure rate from 51 to 72 This could depend on
several factors but what it really boils down to is the growing need for ERP systems in businesses and a
lack of qualified experts helping these companies throughout their selection and implementation
processes
Success 49Failure
51
2001 ERP Implementations
Success 28
Failure 72
2010 ERP Implemantations
6 Common Mistakes Businesses Make When Selecting ERP Software Page 5 of 13
4403524700 | wwwe2benterprisecom share this white paper
When it comes to ERP comparison and implementation the same mistakes get repeated over and over
This white paper will aid in your ERP selection process and shed light on some of the fatal mistakes that
could undermine not only your final decision but possibly your entire company This white paper will
walk you through six of the biggest mistakes you can make in your ERP decision process and show you
how you can avert them
1 Donrsquot Assume Itrsquos Going to be Business as Usual No matter what organization or industry you work in your business processes and environment will
change ndash if not a conscious transformation then unwilled and unexpected Itrsquos much better to create
your own change in your business rather than have unexpected change create your business for you
The best time to re-evaluate your business processes is when yoursquore about to implement a new business
system Especially a system as multifaceted as ERP
Many businesses get stuck in the ldquothatrsquos the way wersquove always done itrdquo mind-trap They refuse to give
up their old tactics This compromises the ability of a new business system to really bolster your
company In reality businesses should be using their ERP implementation to reassess operating
processes and address how a new system can best work with their needs In most cases business
software is only effective if itrsquos backed by a strong business model Use your ERP selection to learn what
is and isnrsquot working at your company because itrsquos much easier to make these changes now than it is
when you already have a system in place
According to the report by Lakelet Advisory Group [sup3] the top reason that ERP implementations fail is
due to the inability to change processes
36
24
17
11
9
3
ERP Implementations Fail Becausehellip
Inability to changeprocess
Senior Management
Customization
Training
The implementation wasIT based
Wrong solution selected
6 Common Mistakes Businesses Make When Selecting ERP Software Page 6 of 13
4403524700 | wwwe2benterprisecom share this white paper
2 Donrsquot Avoid Proper Planning Planning should be one of the most important steps in your ERP selection process ERP is a very costly
investment and it takes time to implement successfully Planning properly from the start can ensure
that yoursquore spending less money and time on your project More importantly a strong plan will make
sure your final ERP selection is the right fit for your business Some factors to consider in your planning
stage include
bull Establishing your budget and your ability to afford the investment If the investment amount comes
out higher than you feel comfortable with the software provider may offer a Software as a Service
(SaaS) solution that allows you to essentially rent access to the software in the cloud usually on a
month to month basis decreasing your need for up-front cash
bull Assigning the selection team and who will be working on this project Be sure to identify the executive
sponsor and all critical stakeholders
bull Classifying the areas of your business you want to improve Also note areas in which you already do
well so the solution provider can address your most important needs
bull Identifying your staffs critical business
issues and needs The list doesnrsquot need to be
a 200-page document with 10000
requirements Even a checklist can help keep
your team focused on solving the problems
that are important to you
bull Defining selection criteria (Request for
Proposal or RFP) for the solution and the
provider partnership Criteria such as long-
term financial stability in-depth knowledge
of your industry investment in research and
development implementation process and
technology vision are all important factors to
consider
As part of your planning phase make sure to develop a timeframe in which you want specific tasks
completed Itrsquos useful to document all of the evaluation activities you plan on completing during this
phase such as discovery sessions demos site visits meetings and so forth Then set a tentative date
for the completion of each task Planning during your ERP selection process is no different than planning
for any large decision you need to establish what your goals are and then lay a blueprint for how each
goal is going to get accomplished
6 Common Mistakes Businesses Make When Selecting ERP Software Page 7 of 13
4403524700 | wwwe2benterprisecom share this white paper
3 Donrsquot Choose the Wrong Technology Partner Would you undergo neurosurgery from a dentist Of course not Much like your body a business is like
a living breathing organism composed of several individual parts that work together A change of ERP
system can be much like neurosurgery because your ERP is the brain of your organization managing
intelligence over all of the processes that make your business function
If you have a problem or inefficiency within your company software can act as the cure In this sense a
technology partner is much like a doctor If you choose a technology partner that doesnrsquot understand
your industry they wonrsquot be able to properly understand what your needs are and they certainly wonrsquot
understand how to fit an ERP system to your business
You need to ask several questions of your technology partner to make sure yoursquore getting the treatment
you require questions such as
How many of their other customers are in your industry
How long has the company been serving industries like yours
Who are the key people who will implement your software system and what is their
background
What are their customers saying about them
How many of their customers have had sustaining success with their ERP software after their
implementation
Make a list that defines specific attributes that are important to your company and you feel should be
represented by your technology partner This list should highlight values that will illustrate your
partnerrsquos competence working with your industry your company size your organizational structure
your corporate culture and so forth
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 4 of 13
4403524700 | wwwe2benterprisecom share this white paper
Overview Software selection and implementation can be one of the most costly and time consuming projects that
your company embarks on Thatrsquos why itrsquos imperative your ERP selection process is done right You need
to plan for every step of this process and have complete understanding of things like your budget time
required people involved and resources required Failure to evaluate these important factors could
mean ditching your final ERP selection and starting the process all over again after just a few years You
need to find a system thatrsquos strong enough to handle your business for many years while also dynamic
enough to grow as your company grows
It doesnrsquot matter if yoursquore a multi-billion dollar organization with locations spread out globally or if
yoursquore a smaller company with only a handful of employees your ERP system needs to provide
functionality for all of your business processes ndash from financials and HR to distribution and your supply
chain A good ERP system should streamline all of these processes and more from one single database
But be careful because many solutions that call themselves ERP really arenrsquot
Since ERP systems entered the marketplace around 1990 there have been myriad software providers
Some create powerful full-scale ERP systems but others bill their solution as an ERP when in reality
theyrsquore only a small part or extension of a full system For a business going through the ERP selection
process this can make things very complicated And even when you do find a system with full ERP
functionality it still might not be the right fit for your industry or your company This is why so many
implementations end up being disastrous ndash because quick and uninformed decisions were made during
the selection phase
How many ERP implementations blow up in failure Well in 2001 Robbins-Gioia did a survey [sup1] of 232
companies in multiple industries about the perceptions of their ERP implementation What they found
was that 51 viewed their implementations as unsuccessful One decade later Panorama Consulting
Solutions did a similar report [sup2] But what they found was that 72 of ERP system implementations fail
So what happened in 10 years that brought the failure rate from 51 to 72 This could depend on
several factors but what it really boils down to is the growing need for ERP systems in businesses and a
lack of qualified experts helping these companies throughout their selection and implementation
processes
Success 49Failure
51
2001 ERP Implementations
Success 28
Failure 72
2010 ERP Implemantations
6 Common Mistakes Businesses Make When Selecting ERP Software Page 5 of 13
4403524700 | wwwe2benterprisecom share this white paper
When it comes to ERP comparison and implementation the same mistakes get repeated over and over
This white paper will aid in your ERP selection process and shed light on some of the fatal mistakes that
could undermine not only your final decision but possibly your entire company This white paper will
walk you through six of the biggest mistakes you can make in your ERP decision process and show you
how you can avert them
1 Donrsquot Assume Itrsquos Going to be Business as Usual No matter what organization or industry you work in your business processes and environment will
change ndash if not a conscious transformation then unwilled and unexpected Itrsquos much better to create
your own change in your business rather than have unexpected change create your business for you
The best time to re-evaluate your business processes is when yoursquore about to implement a new business
system Especially a system as multifaceted as ERP
Many businesses get stuck in the ldquothatrsquos the way wersquove always done itrdquo mind-trap They refuse to give
up their old tactics This compromises the ability of a new business system to really bolster your
company In reality businesses should be using their ERP implementation to reassess operating
processes and address how a new system can best work with their needs In most cases business
software is only effective if itrsquos backed by a strong business model Use your ERP selection to learn what
is and isnrsquot working at your company because itrsquos much easier to make these changes now than it is
when you already have a system in place
According to the report by Lakelet Advisory Group [sup3] the top reason that ERP implementations fail is
due to the inability to change processes
36
24
17
11
9
3
ERP Implementations Fail Becausehellip
Inability to changeprocess
Senior Management
Customization
Training
The implementation wasIT based
Wrong solution selected
6 Common Mistakes Businesses Make When Selecting ERP Software Page 6 of 13
4403524700 | wwwe2benterprisecom share this white paper
2 Donrsquot Avoid Proper Planning Planning should be one of the most important steps in your ERP selection process ERP is a very costly
investment and it takes time to implement successfully Planning properly from the start can ensure
that yoursquore spending less money and time on your project More importantly a strong plan will make
sure your final ERP selection is the right fit for your business Some factors to consider in your planning
stage include
bull Establishing your budget and your ability to afford the investment If the investment amount comes
out higher than you feel comfortable with the software provider may offer a Software as a Service
(SaaS) solution that allows you to essentially rent access to the software in the cloud usually on a
month to month basis decreasing your need for up-front cash
bull Assigning the selection team and who will be working on this project Be sure to identify the executive
sponsor and all critical stakeholders
bull Classifying the areas of your business you want to improve Also note areas in which you already do
well so the solution provider can address your most important needs
bull Identifying your staffs critical business
issues and needs The list doesnrsquot need to be
a 200-page document with 10000
requirements Even a checklist can help keep
your team focused on solving the problems
that are important to you
bull Defining selection criteria (Request for
Proposal or RFP) for the solution and the
provider partnership Criteria such as long-
term financial stability in-depth knowledge
of your industry investment in research and
development implementation process and
technology vision are all important factors to
consider
As part of your planning phase make sure to develop a timeframe in which you want specific tasks
completed Itrsquos useful to document all of the evaluation activities you plan on completing during this
phase such as discovery sessions demos site visits meetings and so forth Then set a tentative date
for the completion of each task Planning during your ERP selection process is no different than planning
for any large decision you need to establish what your goals are and then lay a blueprint for how each
goal is going to get accomplished
6 Common Mistakes Businesses Make When Selecting ERP Software Page 7 of 13
4403524700 | wwwe2benterprisecom share this white paper
3 Donrsquot Choose the Wrong Technology Partner Would you undergo neurosurgery from a dentist Of course not Much like your body a business is like
a living breathing organism composed of several individual parts that work together A change of ERP
system can be much like neurosurgery because your ERP is the brain of your organization managing
intelligence over all of the processes that make your business function
If you have a problem or inefficiency within your company software can act as the cure In this sense a
technology partner is much like a doctor If you choose a technology partner that doesnrsquot understand
your industry they wonrsquot be able to properly understand what your needs are and they certainly wonrsquot
understand how to fit an ERP system to your business
You need to ask several questions of your technology partner to make sure yoursquore getting the treatment
you require questions such as
How many of their other customers are in your industry
How long has the company been serving industries like yours
Who are the key people who will implement your software system and what is their
background
What are their customers saying about them
How many of their customers have had sustaining success with their ERP software after their
implementation
Make a list that defines specific attributes that are important to your company and you feel should be
represented by your technology partner This list should highlight values that will illustrate your
partnerrsquos competence working with your industry your company size your organizational structure
your corporate culture and so forth
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 5 of 13
4403524700 | wwwe2benterprisecom share this white paper
When it comes to ERP comparison and implementation the same mistakes get repeated over and over
This white paper will aid in your ERP selection process and shed light on some of the fatal mistakes that
could undermine not only your final decision but possibly your entire company This white paper will
walk you through six of the biggest mistakes you can make in your ERP decision process and show you
how you can avert them
1 Donrsquot Assume Itrsquos Going to be Business as Usual No matter what organization or industry you work in your business processes and environment will
change ndash if not a conscious transformation then unwilled and unexpected Itrsquos much better to create
your own change in your business rather than have unexpected change create your business for you
The best time to re-evaluate your business processes is when yoursquore about to implement a new business
system Especially a system as multifaceted as ERP
Many businesses get stuck in the ldquothatrsquos the way wersquove always done itrdquo mind-trap They refuse to give
up their old tactics This compromises the ability of a new business system to really bolster your
company In reality businesses should be using their ERP implementation to reassess operating
processes and address how a new system can best work with their needs In most cases business
software is only effective if itrsquos backed by a strong business model Use your ERP selection to learn what
is and isnrsquot working at your company because itrsquos much easier to make these changes now than it is
when you already have a system in place
According to the report by Lakelet Advisory Group [sup3] the top reason that ERP implementations fail is
due to the inability to change processes
36
24
17
11
9
3
ERP Implementations Fail Becausehellip
Inability to changeprocess
Senior Management
Customization
Training
The implementation wasIT based
Wrong solution selected
6 Common Mistakes Businesses Make When Selecting ERP Software Page 6 of 13
4403524700 | wwwe2benterprisecom share this white paper
2 Donrsquot Avoid Proper Planning Planning should be one of the most important steps in your ERP selection process ERP is a very costly
investment and it takes time to implement successfully Planning properly from the start can ensure
that yoursquore spending less money and time on your project More importantly a strong plan will make
sure your final ERP selection is the right fit for your business Some factors to consider in your planning
stage include
bull Establishing your budget and your ability to afford the investment If the investment amount comes
out higher than you feel comfortable with the software provider may offer a Software as a Service
(SaaS) solution that allows you to essentially rent access to the software in the cloud usually on a
month to month basis decreasing your need for up-front cash
bull Assigning the selection team and who will be working on this project Be sure to identify the executive
sponsor and all critical stakeholders
bull Classifying the areas of your business you want to improve Also note areas in which you already do
well so the solution provider can address your most important needs
bull Identifying your staffs critical business
issues and needs The list doesnrsquot need to be
a 200-page document with 10000
requirements Even a checklist can help keep
your team focused on solving the problems
that are important to you
bull Defining selection criteria (Request for
Proposal or RFP) for the solution and the
provider partnership Criteria such as long-
term financial stability in-depth knowledge
of your industry investment in research and
development implementation process and
technology vision are all important factors to
consider
As part of your planning phase make sure to develop a timeframe in which you want specific tasks
completed Itrsquos useful to document all of the evaluation activities you plan on completing during this
phase such as discovery sessions demos site visits meetings and so forth Then set a tentative date
for the completion of each task Planning during your ERP selection process is no different than planning
for any large decision you need to establish what your goals are and then lay a blueprint for how each
goal is going to get accomplished
6 Common Mistakes Businesses Make When Selecting ERP Software Page 7 of 13
4403524700 | wwwe2benterprisecom share this white paper
3 Donrsquot Choose the Wrong Technology Partner Would you undergo neurosurgery from a dentist Of course not Much like your body a business is like
a living breathing organism composed of several individual parts that work together A change of ERP
system can be much like neurosurgery because your ERP is the brain of your organization managing
intelligence over all of the processes that make your business function
If you have a problem or inefficiency within your company software can act as the cure In this sense a
technology partner is much like a doctor If you choose a technology partner that doesnrsquot understand
your industry they wonrsquot be able to properly understand what your needs are and they certainly wonrsquot
understand how to fit an ERP system to your business
You need to ask several questions of your technology partner to make sure yoursquore getting the treatment
you require questions such as
How many of their other customers are in your industry
How long has the company been serving industries like yours
Who are the key people who will implement your software system and what is their
background
What are their customers saying about them
How many of their customers have had sustaining success with their ERP software after their
implementation
Make a list that defines specific attributes that are important to your company and you feel should be
represented by your technology partner This list should highlight values that will illustrate your
partnerrsquos competence working with your industry your company size your organizational structure
your corporate culture and so forth
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 6 of 13
4403524700 | wwwe2benterprisecom share this white paper
2 Donrsquot Avoid Proper Planning Planning should be one of the most important steps in your ERP selection process ERP is a very costly
investment and it takes time to implement successfully Planning properly from the start can ensure
that yoursquore spending less money and time on your project More importantly a strong plan will make
sure your final ERP selection is the right fit for your business Some factors to consider in your planning
stage include
bull Establishing your budget and your ability to afford the investment If the investment amount comes
out higher than you feel comfortable with the software provider may offer a Software as a Service
(SaaS) solution that allows you to essentially rent access to the software in the cloud usually on a
month to month basis decreasing your need for up-front cash
bull Assigning the selection team and who will be working on this project Be sure to identify the executive
sponsor and all critical stakeholders
bull Classifying the areas of your business you want to improve Also note areas in which you already do
well so the solution provider can address your most important needs
bull Identifying your staffs critical business
issues and needs The list doesnrsquot need to be
a 200-page document with 10000
requirements Even a checklist can help keep
your team focused on solving the problems
that are important to you
bull Defining selection criteria (Request for
Proposal or RFP) for the solution and the
provider partnership Criteria such as long-
term financial stability in-depth knowledge
of your industry investment in research and
development implementation process and
technology vision are all important factors to
consider
As part of your planning phase make sure to develop a timeframe in which you want specific tasks
completed Itrsquos useful to document all of the evaluation activities you plan on completing during this
phase such as discovery sessions demos site visits meetings and so forth Then set a tentative date
for the completion of each task Planning during your ERP selection process is no different than planning
for any large decision you need to establish what your goals are and then lay a blueprint for how each
goal is going to get accomplished
6 Common Mistakes Businesses Make When Selecting ERP Software Page 7 of 13
4403524700 | wwwe2benterprisecom share this white paper
3 Donrsquot Choose the Wrong Technology Partner Would you undergo neurosurgery from a dentist Of course not Much like your body a business is like
a living breathing organism composed of several individual parts that work together A change of ERP
system can be much like neurosurgery because your ERP is the brain of your organization managing
intelligence over all of the processes that make your business function
If you have a problem or inefficiency within your company software can act as the cure In this sense a
technology partner is much like a doctor If you choose a technology partner that doesnrsquot understand
your industry they wonrsquot be able to properly understand what your needs are and they certainly wonrsquot
understand how to fit an ERP system to your business
You need to ask several questions of your technology partner to make sure yoursquore getting the treatment
you require questions such as
How many of their other customers are in your industry
How long has the company been serving industries like yours
Who are the key people who will implement your software system and what is their
background
What are their customers saying about them
How many of their customers have had sustaining success with their ERP software after their
implementation
Make a list that defines specific attributes that are important to your company and you feel should be
represented by your technology partner This list should highlight values that will illustrate your
partnerrsquos competence working with your industry your company size your organizational structure
your corporate culture and so forth
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 7 of 13
4403524700 | wwwe2benterprisecom share this white paper
3 Donrsquot Choose the Wrong Technology Partner Would you undergo neurosurgery from a dentist Of course not Much like your body a business is like
a living breathing organism composed of several individual parts that work together A change of ERP
system can be much like neurosurgery because your ERP is the brain of your organization managing
intelligence over all of the processes that make your business function
If you have a problem or inefficiency within your company software can act as the cure In this sense a
technology partner is much like a doctor If you choose a technology partner that doesnrsquot understand
your industry they wonrsquot be able to properly understand what your needs are and they certainly wonrsquot
understand how to fit an ERP system to your business
You need to ask several questions of your technology partner to make sure yoursquore getting the treatment
you require questions such as
How many of their other customers are in your industry
How long has the company been serving industries like yours
Who are the key people who will implement your software system and what is their
background
What are their customers saying about them
How many of their customers have had sustaining success with their ERP software after their
implementation
Make a list that defines specific attributes that are important to your company and you feel should be
represented by your technology partner This list should highlight values that will illustrate your
partnerrsquos competence working with your industry your company size your organizational structure
your corporate culture and so forth
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 8 of 13
4403524700 | wwwe2benterprisecom share this white paper
4 Donrsquot Underestimate Implementation Time or Resources Most companies will far underestimate the amount of time and resources that are required for
implementing a new ERP system Often they believe their technology partner can just do the whole
thing easily without much assistance needed on the customerrsquos end This is a dangerous misconception
because without the proper planning your implementation can tie up your processes far longer than is
necessary
In order to estimate the time involved in your implementation there is a simple formula
Divide the total cost of your ERP software by 100 For instance if your ERP software costs $25000 then
you can expect to take about 250 man-hours or a little over six weeks to implement assuming yoursquore
using a certified consultant If you plan to self-implement which is not recommended you can expect to
double that time
To ensure the implementation goes as smoothly and as timely as possible you need to plan your time
accordingly Itrsquos highly recommended that you assign a dedicated project manager to your
implementation This project manager should be in charge of mapping out the implementation from
start to finish taking into account such things as budget time required and people involved and key
contacts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 9 of 13
4403524700 | wwwe2benterprisecom share this white paper
5 Donrsquot Exclude Employees from Implementation Decisions Todayrsquos world is driven by technology The decisions surrounding what technologies your company will
embrace are choices that will directly impact its success For this reason itrsquos imperative that the right
people at your company are involved when deciding which ERP system to implement You need people
that are technically competent enough to understand the infrastructure of the system people that will
know what functionality is required of the system and high level executives that have a clear vision of
the companyrsquos future
Since ERP takes part in almost every division of your organization itrsquos important to involve the head
managers and decision makers from each division in the selection process Even if your ERP is providing
executive oversights to only a few top employees many more employees will be impacted by the
system and including people such as line managers is very important to the selection process
Depending on the size of your organization it might be difficult to include every manager or decision
maker but whatrsquos important is including those who have the most influence over particular business
processes Here are some key people you would want to include in your ERP selection
Executives
A CEO Owner Chief Financial
Officer and other executives
provide long-range vision of the
company
Managers
Line managers from each
discipline should confirm
proper functionality
IT Staff
IT Staff such as your CIO can
ensure you have the best
technology infrastructure
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 10 of 13
4403524700 | wwwe2benterprisecom share this white paper
6 Donrsquot Neglect Maintenance amp Upgrades Selecting and implementing your ERP system is just the first step in a larger process After you have the
system up and running itrsquos obvious that you will eventually have to undergo upgrades and maintenance
When it comes to ERP maintenance is much more than just doing repairs to the system when
something goes wrong itrsquos also preventative According to a study done by the National Institute of
Statistical Sciences only about 21 of software maintenance goes toward bug fixes [4] The other 79 of
software maintenance goes mostly toward product enhancements
Maintenance must be able to stay informed on key issues and security alerts be able to cost-effectively
troubleshoot bugs provide migration support and keep up-to-date with global upgrades and changes
made to the system by the developer Do you know who will be able to handle these responsibilities
Usually the software reseller or original
publisher assists with the maintenance of your
ERP Some companies even outsource the
maintenance of their software to independent
support consultants It is rare that the IT staff or
other direct employees at your company would
perform the upgrades and maintenance of an
enterprise business system You will need to
have a maintenance strategy in place before
going forward with your ERP implementation
This way you will know who to rely on when
changes to the system need to be made
In addition to having a strong maintenance strategy for your ERP system you should also make sure this
strategy is cost-effective in the long run According to SSi Consulting companies typically spend around
15-20 of their software license fees on maintenance and support every year [5] This makes choosing
your maintenance provider almost as important as choosing your software provider When selecting
your technology partner itrsquos best to pick a candidate that can provide a full 360 degree range of ERP
services By selecting a candidate that can deliver the whole package you can greatly reduce cost and
confusion while also making sure they are fully invested with your business and ERP system
Bug Fixes
Enhancements
and other
Maintenance
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 11 of 13
4403524700 | wwwe2benterprisecom share this white paper
Conclusion Selecting and implementing an ERP system is no small effort It involves plenty of time energy and
participation from several divisions and employees at your business Often the time to complete the
initial planning right through to the final implementation can take several months ndash sometimes years
But donrsquot let that discourage you A properly utilized ERP system can provide a return on investment
that will exceed your highest expectations
This white paper should be just the start of your research into ERP selection methodology The more you
educate yourself the better your chances of a successful implementation Although internet research
and white papers alone can only go so far Eventually you will need to lean on a technology partner or
industry expert to provide you with answers to the many questions you will have along the way Picking
this partner is just as important as picking the solution itself because your partner will guide you to
ultimately make your final ERP decision
If done correctly a properly implemented ERP system can greatly improve your company from every
angle ndash from efficiency to productivity to revenue increases Start planning right from the start and
you will have no trouble finding an ERP system that maximizes your business
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 12 of 13
4403524700 | wwwe2benterprisecom share this white paper
About e2b teknologies e2b teknologies (wwwe2btekcom) sells supports and implements Epicor 9 Sage 500 ERP and Intacct
Financials enterprise resources planning (ERP) accounting software for distribution manufacturing and
service companies e2b also resells develops and implements SugarCRM the fastest growing CRM on
the market Learn about our Sage ERP X3 consulting Sage 500 ERP consultant Sage 100 ERP consulting
and Epicor consulting and development services
Industry solutions are available for automotive HVAC amp plumbing food and beverage high technology
and professional services organizations ERP solutions include integrated systems for Supply Chain
Management (SCM) Enterprise Content Management (ECM) Customer Relationship Management
(CRM) Human Resources Management Systems (HRMS) Warehouse Management Systems (WMS)
and more
Customers have access to senior-level engineers and consultants and are supported through an online
customer portal and dedicated team of knowledgeable support analysts
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013
6 Common Mistakes Businesses Make When Selecting ERP Software Page 13 of 13
4403524700 | wwwe2benterprisecom share this white paper
Sources 1 Statistics over IT Failure Rate Statistics over IT Failure Rate Robbins-Gioia 2001 Web 17
June 2013 lthttpwwwit-cortexcomStat_Failure_Ratehtmgt
2 Kimberling Eric One Key Reason Why 72 of ERP System Implementations FailPanorama
Consulting Solutions Panorama Consulting Solutions 9 Mar 2010 Web 17 June 2013
3 Reimplementation of ERPCRM Lakelet Advisory Group LLC Np 21 Jan 2013 Web 15
June 2013
4 Eick S Graves T Karr A Marron J and Mockus A 2001 Does Code Decay Assessing
Evidence from Change Management Data IEEE Transactions on Software Engineering 27(1) 1-
12
5 Riordan Karen Advantages of Staying Current on ERP Maintenance ERP Software Blog SSi
Consulting 14 June 2010 Web 21 June 2013