In the ERP industry, there are taboo topics most vendors do not like to discuss, except when the lawyers get involved. One of them is many ERP software vendors get in the way while the client attempts to make an informed software decision. This is not a question of good vs. evil intent, but let’s faces it, more than one project has failed because of “vaporware”, and other broken vendor promises.
I am positive many ERP vendors will simply dismiss this article as unnecessary rock throwing. This is not surprising since the client has a lot more to lose than they do. Vendors are off to their next sales pitch, but the client will live with the implementation results for a long time to come.
Do not doom your project from the start
While the need to select the “best fit” ERP software package is a given, often times the euphoric atmosphere of the selection phase eventually gives way to the harsh realities of implementation. That is, software vendors are no help in managing client expectations and, in fact, they can be part of the problem.
First, recognize the business of peddling ERP software involves one of the biggest sales pitches on the planet. Therefore, regardless of what the sales people claim the software can do, no package is infinitely flexible or configurable. Also, the sale people are long gone when it comes time to implement. This means if there ever was a time to play skeptic, it is when evaluating ERP software.
Granted, whether one spends six months evaluating ERP software or six years, software is usually not the reason for outright project failure. No doubt, there are some good ERP packages out there, but there are also many very bad ones. The problem is selecting the absolute wrong package will be difficult to overcome (even when everything else is done right).
Playing the Shell Game
When the perspective buyer attempts to understand what is behind the curtain, most vendors play “hide and seek”, or a “shell game” to conceal software limitations. Simple vendor answers to client software questions such as: “yes”, “could”, “might”, “future”, “write a report”, “minor change”, or “I’ll get back with you” usually mean the software doesn’t do any of it and never will.
Of course, everyone knows a list of software requirements, business scenarios, and scripts for the vendor to demonstrate are pre-requisites. However, most vendors agree with what a former president once said, “It all depends on what your definition of the word “is” is”.
During the sales process, some vendor practices are downright deceitful; involve power plays or acts of desperation. For example, do not get too excited when your company's terminology is on menus and screens, or your part numbers are in the demo system. These are all diversion tactics, but do not mean a hill of beans when it comes to what the software can actually do.
While every vendor will claim their software contains “best practices”, “whose” best practice is the multi-million dollar question. Taking a blind leap of faith in this area may be the last leap you ever take. Sure, the vendor sales team will bring in their functional experts, but they are really more sales people (in disguise).
When it comes to understanding the underlying technologies, stability, integration, and vendor support associated with any package, there are reasons why many vendors prefer your IT department is not involved. They would much rather speak with functional managers or end-users that do not know the right IT questions to ask.
Also, do not be surprised if a vendor attempts to go over the heads of the evaluation team and straight to senior management (particularly if they are losing). This is called “selling solutions to senior management”. After all, vendors know sr. managers are the least qualified people in the organization to be selecting software.
Finally, an expensive package the vendor is suddenly giving away should raise plenty of red flags. We all know what they say about pigs. You can put lipstick on a pig, but it is still a pig.
Creating bias
No doubt as a member of the software evaluation team, the vendor provides plenty of free meals, shirts, pens, marketing white papers, and maybe a pass to the national user conference. In return, when a peer asks the vendor a tough question during the evaluation, the hope is you will dismiss the question for them. Did you ever stop to think maybe the sales person you do not like might actually have the best software?
Show me
As one can see a potential ERP client cannot ass-u-me much of anything. When evaluating software use a structured approach (and stick with it), control the agenda, level the playing field for all vendors, minimize bias and subjectivity, limit vendor access to key decision makers, and above all challenge vendor claims by requiring hard evidence. The philosophy should be “unless you can show me, I must assume it does not exist”. This does not make one a popular guy among ERP vendors, but unfortunately they have left us with no other choice.
ERP Software Vendors: Do you call this a partnership?
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