Choice of ERP: the old supplier is not always worse new

According to Eric Kimberliga (Eric Kimberling), the president of Panorama Consulting Group, the companies often do not want to have more nothing in common with the current ERP system and its supplier. Over time the ERP system becomes outdated, it is not updated and ceases to correspond to business needs. Thus, in this situation the last that the client would like in selection process of ERP - it is to consider this system and its supplier. However there are several advantages of the current ERP vendor before absolutely new supplier and his system.

1. Problems are often connected with business processes and management of organizational changes, but not with the software. Most often the ERP system is not a problem. The problem is, as a rule, connected with inefficient business processes which the ERP system cannot correct without their reengineering. Besides, employees often do not understand how to use functionality of a system. It most often indicates sales problems, but not software problems.

2. Updating of the ERP system can often lead to increase in business performance. Most ERP vendors release several software updatings within a year therefore even if a system was not updated at least one year, it may contain not functionality which is capable to solve the current problems. Thus, updating can solve many problems of the current ERP system.

3. Large software suppliers purchase other companies or solutions, expanding possibilities of the systems. Many ERP vendors for many years executed similar acquisitions therefore the current supplier of the ERP system can already have the necessary product of which the client does still not know. Besides, in addition to the main ERP system, many vendors purchase and integrate solutions which can expand functionality of the existing ERP system.

4. Updating can be cheaper option in comparison with replacement of the solution. To hold the client, the current ERP supplier will aim to be more flexible in the questions concerning the cost of software licenses, costs for maintenance and upgrade. Besides, as the company is already familiar with the current system and, most likely, can independently support her, costs for maintenance of an existing solution will be lower.

5. Consideration of the current ERP vendor as the suitable supplier can be used when negotiating in ERP system selection process. Other suppliers will know that the company has an opportunity not to pass to a new ERP system therefore they, most likely, will not overstate too the price.