Thursday, January 8, 2009

Major pitfall of ERP : Enterprise Resource Planning

ERP is the software solution that claims to solve all your business need.  One software for ALL !

More often than require, ERP vendors always claim ERP is a very complicated software.  Therefore they cann't let you use the software right away.  Giving you access to the software will only confuse you.  They will have to configure it first before you can use it.

In order to configure it, they have to know what you need.

First of all, what a bussiness need today is not necessary the same tomorrow.

2nd, whatever needs you told the ERP consultants, he probably understand less than half of it since he is not "IN" your business.  He may understand what you 'Told" him but he would NOT be able to "Feel" it like you do !

So guess what !  At end end, whatever he configured for you will almost certainly NOT match your real needs.

By then, you already paid 80% of the 1 million dollar project.

Let me recap .... ERP is very complicated, you cann't just start by using it.  You have to pay first for consultants to configure it.  After months or years down the road, you will certainly obtain a configured system that is really NOT that usuable anyway.  By then you should repeat the process again because its 'complicated'.

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