5 Mistakes Distributors Make When Selecting an Enterprise Software Solution
5 Mistakes Distributors Make When Selecting an Enterprise Software Solution
System replacement starts with a vision
It’s no light matter to replace your enterprise software system. It’s essentially performing a heart
transplant on your business. Replacement may appear to be a difficult and painful process, but
done right, it can open numerous business opportunities. The cornerstone of this effort is finding
the partner that can show you how to make this hard transition easier, and a specialist with the
confidence to walk side-by-side with you until your goals are achieved.
Distributors decide to replace their enterprise resource planning (ERP) systems for a variety of
reasons. At the most fundamental level, the question is whether your current system supports or
constrains your ability to execute business strategies that will make your company successful and
establish it as an industry leader.
After the decision to change is made, you must imagine what your company will look like in 10
years or more. What new developments in your industry will reshape your company? How will
your company lead or respond to those changes? More importantly, how will you get there, what
technologies will you have adopted, and how will they have helped you succeed? This vision will
form the basis of the criteria for your selection of an ERP system replacement.
Your enterprise software provider must be part of your vision. They must have faced these
challenges many times in their history and learned how to help distributors adopt new
technologies. The future of your business depends on whether they have successfully made
the leap from one technology curve to the next, and continue to innovate and deliver to help
companies like yours lead the change.
Selecting the right software provider for your business can be a daunting task for those who lack
experience in this process. The last thing any person or company wants is to invest in the wrong
technology and choose the wrong partnership.
There are five common mistakes distributors make when embarking on the software
selection process.
XXNot involving the head of the organization in the decision-making process
XXSkipping the planning phase because “it takes too much time”
XXConsidering a technology provider that doesn’t truly understand your industry
XXAssuming you will do things exactly the same way you do them today
XXSelecting a vendor that lacks a long-term vision
If you can avoid these common pitfalls, you will dramatically increase your chances for success.
This document addresses each of these issues and presents sound advice for ensuring you make
the proper decision that will support and enhance the future vision of your company.
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5 Mistakes Distributors Make When Selecting an Enterprise Software Solution
Mistake #1
Not involving the head of the organization in the decisionmaking
process
You wouldn’t open a new warehouse or branch location without involving your business leaders,
so why do a significant number of distributors exclude their owner, president, or CEO from the
enterprise software decision-making process? In today’s technology-driven world, perhaps no
other decision can have a greater impact on your company’s success or failure. However, thinking
it’s strictly a technology issue, top executives often leave the decision solely to their information
technology (IT) staff. In reality, purchasing software is a pure business decision. Unless the IT team
understands the vision of the company for the next 5-10 years, they cannot judge the value a
software solution will bring to the business. The top executive should always lead the search for
new software by establishing a vision for the project.
Because the software selected will impact almost every employee within the organization, the
success or failure of the new software often hinges on whether or not the people who will
use it buy into the decision. Line managers in each operational area must have some input
in the decision-making process. That is not to say that theirs is the only vote that counts, but
understanding their day-to-day issues will help you make an informed decision.
Finally, input from the IT staff is necessary to ensure that the software solution you select can carry
your business into the future. Software that meets your needs today can become obsolete in six
months if the technology that the software is built upon can’t grow and adapt with
your business.
Ideally, the team selecting your new enterprise software solution should include a high-level
executive sponsor with long-range vision; line managers from each discipline to confirm proper
functionality; and IT staff to ensure that you have the best technology infrastructure for the
present and future.
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