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… for fear of scaring off the customer from making a purchase.
Mistake #2: Not Considering Open Source ERP
One of the first things the ERP selection advisors will do is rule out open source ERP from the ERP selection process. The major IT consulting firms only want to implement commercial ERP solutions to make the highest profits. Even supposedly non-implementing advisors like Panorama Consulting rule out open source, as is covered in the article How Predictable Was Panorama Consulting’s Opinion on Open Source ERP?
Open-source ERP can be far more easily customized than proprietary ERP systems. Therefore …

… also pay them the most money.
Complication #2: Not Questioning if an ERP System is Necessary
Many companies are poor fits for ERP systems. However, it is nearly unheard of for an ERP evaluation advisor to perform an ERP analysis and to recommend anything but an ERP system once the ERP vendor selection project has begun.
This is a flawed approach. It is through analyzing the business requirements that one determines if an ERP system is the best possible option. For example, a bank would be a good example in some companies, such as a small percentage of an ERP …

… 2: Not Questioning if an ERP System is Necessary
Many companies are poor fits for ERP systems. However, it is nearly unheard of for an ERP evaluation advisor to recommend anything but an ERP system once the ERP vendor selection project has begun.
This is a flawed approach. It is through analyzing the business requirements that one determines if an ERP system is the best possible option. For example, a bank would be a good example in some companies, such as a small percentage of an ERP system’s overall functionality. Purchasing an ERP system is a major waste of

… biased ERP system selection advisor for their ERP readiness assessment that has financial relationships that it does not disclose to you. This means that they will most often rig the ERP readiness assessment to state that the company is ready for an ERP system.
Complication #2: Not Questioning if an ERP System is Necessary
Many companies are poor fits for ERP systems, but companies will almost never hear of this during a readiness assessment.
Complication #3: Selecting a “Spoken For” Software Selection Firm
One company listed the following description of its software selection or ERP readiness assessment.
Selecting an Enterprise …

… companies are poor fits for ERP systems. However, it is nearly unheard of for an ERP evaluation advisor to recommend anything but an ERP system once the ERP vendor selection project has begun.
This is a flawed approach. It is through analyzing the business requirements that one determines if an ERP system is the best possible option. For example, a bank would be a good example in some companies, such as a small percentage of an ERP system’s overall functionality. Purchasing an ERP system is a major waste of resources. An ERP system combines a financial module, production module,

Executive Summary

ERP mistakes are are common in ERP selection and implementation.
This article explains the top mistakes we have seen.

Introduction
Having seen many ERP purchases and implementations, we have identified some of the most common ERP mistakes.
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ERP Mistakes #1: Selecting a Poor ERP Software Selection Advisor
This is normally not a mentioned item. However, there is a greater probability that the company will select a financially biased ERP system selection advisor than not do so. The straightforward reason for this is that most ERP system selection advisors have a financial bias.
For example, the …

… The content produced by nearly every entity that offers ERP selection services that we have read will normally parrot the claims made by ERP vendors. This shows a lack of independence from the industry.
Therefore, most companies are interested in selecting an ERP system begin their search with an untrustworthy ERP selection advisor. These advisors tend to recommend their clients to the most expensive solutions.
Mistake #2: Not Questioning if an ERP System is Necessary
Many companies are poor fits for ERP systems. However, it is nearly unheard of for an ERP selection advisor to recommend anything but an ERP …

Executive Summary

Panorama Consulting made its position clear on open source ERP.
The question is, how predictable was this opinion?

Introduction
In an article titled What is Open Source ERP? [Pros & Cons to Consider], Panorama Consulting made its position clear on open source ERP. Not only do we think that Panorama reverse engineering this view from their financial bias, but we were able to predict this position.
See our references for this article and related articles at this link.
In our opinion, open source ERP is a bad choice for most organizations – due to vendor viability concerns, as well as …

… the claims of BPR enthusiasts turned out not to be true. In fact, the book and the concept are basically a scam promoted by ERP vendors and consulting companies because Michael Hammer was telling companies what the ERP vendors and consulting firms wanted them to hear.
The main incentive that ERP vendors and consulting firms have to keep promoting BPR is that their functionality is often a big mismatch for the client’s requirements. ERP system functionality is mostly generic, and implementing the ERP system, often means removing advantages in processes the company has built up over the years. ERP …

Executive Summary

ERP software selection advisors tend to have a blinding focus on selecting from several ERP alternatives.
This typically blinds them to the implications and often lack of fit of ERP systems.

Introduction
The large IT consulting firms dominate ERP software selection advisement. However, much smaller firms have come to provide software selection services. How good are these companies at giving good ERP advice?
About Our References
See our references for this article and related articles at this link.
The Issue with ERP Software Selection Advisors
I will address the two major categories of ERP software selection advisors.
Category …