It Matters which ERP Vendor You Choose

The Hackett Group found that there is no correlation between performance and world-class performance.  The ERP market is competitive and cutthroat. It raises the question of whether it is the ERP technology itself or other factors that increases performance.

Based on various expertises’ experience, the specific ERP tool is just one piece of the business performance puzzle. How the organization designs its business processes, how well they establish KPIs and measure performance, how one design the organization and employee roles, and how well to train employees to use the new system are just a few aspects that can have a huge impact on the success of the ERP implementation.

However, all of this is not to say that the ERP software itself is not important. Obviously, one has to select software that best fits the business requirements and operational model. But the key is that ERP is simply an enabler, and not the sole reason, of increased business performance.

The main conclusion here is that selecting an ERP vendor is a big, strategically important decision. Involve as many peers and viewpoints as one can possibly manage. Feel good about being able to articulate the reasoning for choice, numerically if possible. Don’t expose to risks without commensurate rewards. Choosing the right software vendor is a huge step toward to ERP success.