There is a belief that a new ERP system by itself will turn around a struggling business, or make a thriving one more successful. As exciting as a new system can be, servers, software and hardware are expensive, and the belief is usually wrong.
Organisations need to do due diligence on the right IT strategy for their needs instead of focusing solely on budget. An outside set of eyes helps here, because they are not bound by department loyalties and can see the current environment for what it is.
1. Find the right fit
Cost is usually the primary metric companies apply, but there is much more to weigh before committing. Should your workloads be hosted in the cloud or on-premise? Do your people need connectivity on the road? How long will you live with this decision? Are staff connecting their own devices? Is there enough bandwidth? How large and how capable is your own IT team? All of it matters alongside price.
2. Identify the benefits
Establish a baseline of current business processes first. Without it you cannot demonstrate improvement, and you will end up arguing about whether the project worked on the basis of impressions.
3. Plan for the change, not just the system
Most of the cost of a new system is not the system. It is the process change, the training and the period where people are learning. Budget for it explicitly.
4. Measure and adjust
Agree the handful of measures that will tell you whether this worked, and review them at three and twelve months. A strategy without a review date is a wish.