{"id":5592,"date":"2017-01-10T14:10:55","date_gmt":"2017-01-10T22:10:55","guid":{"rendered":"https:\/\/blog-prod.qad.com\/blog\/?p=5592"},"modified":"2023-09-05T10:56:20","modified_gmt":"2023-09-05T17:56:20","slug":"erp-selection-definition-insanity","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2017\/01\/erp-selection-definition-insanity","title":{"rendered":"ERP Selection: The Definition of Insanity"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;5594&#8243; img_size=&#8221;full&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<span style=\"font-weight: 400;\">\u201cInsanity: doing the same thing over and over again and expecting different results.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why are you reading this? I\u2019m sure you have better things to do, like focus on your customers and your products. You\u2019re likely reading this because at some point your <a href=\"https:\/\/www.qad.com\/what-is-erp\" title=\"How to identify when your business needs a new ERP, and tips on selecting an ERP system\">ERP solution stopped meeting your needs<\/a>. Don&#8217;t worry, you&#8217;re not alone; only nine percent of companies achieve 80 percent or more of the expected benefits out of their <a href=\"https:\/\/www.qad.com\/cloud-erp\">ERP system<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For some companies this may have happened on day zero due to the design of the implementation. For other companies, it may have happened later as the needs of the company evolved (and their ERP solution did not). Your business environment is constantly changing. Growth, mergers &amp; acquisitions, new regulations, new products and even new competitors can impact the requirements you have for an ERP system. At the same time, unless you\u2019re working to continuously evolve your ERP solution, a gap will grow between your needs and what your ERP provides. <\/span><\/p>\n<h2>The Three Sins of ERP<\/h2>\n<p><span style=\"font-weight: 400;\">Here\u2019s something to think about: 75 percent or ERP implementations take longer to implement than planned, 55 percent are over budget and 21 percent fail at implementation. <a target=\"_blank\" href=\"https:\/\/go.qad.com\/NA-US-FY17-NUR-EffectiveEnterprise_MS-Rapid-Response-to-Change.html?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=na-us-ee&amp;utm_content=bp-insanity\" rel=\"noopener\">Add to that the fact that 60 percent receive less than 50 percent of their expected benefits<\/a>, and there\u2019s good reason to step back and try to understand why some ERP projects fail while others succeed.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In working with companies who came to us because of failed ERP projects, we have identified what we call the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2015\/08\/sins-of-manufacturing-erp\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">\u00a0Three sins of ERP that other vendors often commit<\/span><\/a><span style=\"font-weight: 400;\">. These include: a lack of continuous improvement approach, a singular concentration on software and assuming the job is over when the solution is deployed. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In general, these \u201csins\u201d are associated with a feature-focused rather than a business-focused approach to ERP. In fact, <a target=\"_blank\" href=\"https:\/\/go.qad.com\/NA-US-FY17-NUR-EffectiveEnterprise_MS-Rapid-Response-to-Change.html?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=na-us-ee&amp;utm_content=bp-insanity\" rel=\"noopener\">72 percent of projects<\/a> have a feature focus versus \u00a0business focus. A feature-focused approach can lead to <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2017\/01\/like-fighter-jets-erp-project\/\" rel=\"noopener\"><span style=\"font-weight: 400;\">c<\/span><span style=\"font-weight: 400;\">omplex, higher cost, big bang projects<\/span><\/a><span style=\"font-weight: 400;\"> focused on \u201cadvanced\u201d software features. A business approach will lead to a lower cost and lower risk phased project focused on achieving business outcomes through process review and business transformation backed by a rational set of software features. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">How can you tell the difference? Are you working to define your technical requirements or your business process requirements? When you train do you conduct system transaction training or process and workflow training that emphasizes ERP as an enabler of those process, not ERP as the process itself? Do you measure the success or you ERP based on minimizing technical bugs or maximizing business results?<\/span><\/p>\n<h2>Time To Rethink Your ERP<\/h2>\n<p><span style=\"font-weight: 400;\">Just as a <a target=\"_blank\" href=\"https:\/\/go.qad.com\/NA-US-FY17-NUR-EffectiveEnterprise_MS-Rapid-Response-to-Change.html?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=na-us-ee&amp;utm_content=bp-insanity\" rel=\"noopener\">near death experience<\/a> can cause you to reassess your priorities, a failed ERP implementation has led companies to rethink their solution. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first step in preventing a similar fate is to challenge yourselves about the <a target=\"_blank\" href=\"https:\/\/go.qad.com\/NA-US-FY17-NUR-EffectiveEnterprise_MS-Agility-in-ERP.html?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=na-us-ee&amp;utm_content=bp-insanity\" rel=\"noopener\">role of ERP in your business and the criteria you will use in selecting an ERP partner<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you don\u2019t, you\u2019re doomed to suffer the same fate again. After all, don\u2019t you already have an ERP system? What will prevent you from being in the exact same place in eight years? <\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_cta h2=&#8221;Did you know that 21 percent of ERP implementations fail to go live? &#8221; h4=&#8221;Learn from common mistakes, and don\u2019t fall victim to the same fate. Read our latest white paper, <i>Why Does ERP Fail.<\/i>&#8221; add_button=&#8221;bottom&#8221; btn_title=&#8221;Download White Paper&#8221; btn_color=&#8221;warning&#8221; btn_link=&#8221;url:https%3A%2F%2Fgo.qad.com%2FERP-NN-EN-FY24-NUR-Manufacturing_LP_em4_WP_why_erp_fail.html%3Futm_term%3Derp%26utm_source%3Dblog%26utm_medium%3Dpost%26utm_campaign%3Dgl-manufacturing%26utm_content%3DWP|title:Download%20White%20Paper|target:%20_blank|&#8221;][\/vc_cta][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;5594&#8243; img_size=&#8221;full&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]\u201cInsanity: doing the same thing over and over again and expecting different results.\u201d Why are you reading this? I\u2019m sure you have better things to do, like focus on your customers and your products. You\u2019re likely reading this because at some point your ERP solution stopped meeting your needs. Don&#8217;t worry, you&#8217;re not [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":5595,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[139,112,262,18,201],"class_list":["post-5592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-effective-enterprise","tag-erp","tag-erp-selection","tag-erp-software","tag-trending"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ERP Selection: The Definition of Insanity - QAD Blog<\/title>\n<meta name=\"description\" content=\"The ERP selection process is critical. 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