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One of the first software that ruled the Enterprise markets was ERP, and rightfully, so. SAP quickly became a global business leader with Oracle’s Netsuite and others followed their lead. While many believe that the ERP problem is well solved, the reality is far from it.

Deployment and management of ERP software can easily turn into a big nightmare for any business, especially small businesses. Even data management suites specialized for specific domains or departments are far from user-friendly.

Here’s our take on this situation: there is a supplier and a buyer problem.

Client-side issues

First, let’s talk of the buyer problem.

  • ERPs are often purchased by those who will not use it.

It shouldn’t be a shock at all that more than 70% of the ERP implementations result into failures. Most ERP software are being sustained hoping for failures of others. More often than not, the bosses dump the most cost effective software for their business. Such a system can lack requisite features or customization. This often leads to failures.

  • Clients often don’t know the exact requirements

Based on a few quick demos, business owners can choose the best pitched ERP and may overlook key requirements. They are not software experts and therefore go by high-level requirements, often missing out some details. Businesses don’t realize that a failed ERP is more than a software sunk cost as it stops employees from trusting any further software adoption.

  • Lack of maintenance

ERP is the bedrock on which a business is supposed to run post deployment. But there is often lack of internal and external support. This leads to piling up of requirements which can’t be paid for, and therefore, lead to demise of our glorious silver bullet.

Vendor issues

Now, let’s move onto the supplier side problems. The biggest one is that the suppliers know the buyer side problems and often take advantage of it.

  • Most ERPs will charge based on users – often the cost won’t be as linearly proportionate as it sounds. As more and more users grow, it becomes less viable for a small business to continue subscription.
  • ERPs are often treated as the most boring pieces of software. Yes, I said it. And, most companies pay less head to making any changes to the UI and the User Experience. SAP, the industry leader, looks like a software from early 2000s. Tally, a proxy ERP for many small businesses, looks like a DOS-based software, and is used by over a million businesses even till date.
  • Suppliers don’t really care about actual benefit to the user. Their support packages and consultations are costly, and often businesses avoid taking them.

In this cost game between buyers and suppliers of ERPs, the industry gets plagued with unreliable and unusable software. This comes at an arduous cost and makes users unhappy. Now, you decide whether the ERP problem is actually solved in the industry.

Want to know what might work for your business? Book a consultation.

1 Comment
  • AffiliateLabz
    2:32 AM, 16 February 2020

    Great content! Super high-quality! Keep it up! 🙂

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