Page 32 - MetalForming September 2012

Is ItTime to Purchase a New
ERP System?
Whether you are contemplat- ing a first-time purchase for your entire company, expand- ing into a new territory currently not supported by enterprise-resource plan- ning (ERP), or deciding whether to replace your existing ERP solution, it’s a big decision. For decades ERP replacement has been compared to brain surgery—you don’t do it unless the patient is dying. Today, the better analogy is joint replacement—you suf- fer with that bum knee or hip until you no longer can stand the pain.
Apply these same principles to your next (or first) ERP purchase. Suffer along if the status quo is “good enough.” But what if it’s not? Sure there will be some recovery time required; plan for it. But with careful selection and planning, and aggressive goal set- ting, you can be operating pain-free and better than ever by implementing a new ERP system.
According to data collected for the Mint Jutras 2011 ERP Solution Study, 62
Cindy Jutras is principal, Mint Jutras, LLC, Windham, NH, an independent research-based consulting firm that spe- cializes in analyzing the business impact of enterprise applications; cindy@mintjutras.com; www.mintju- tras.com.
BY CINDY JUTRAS
percent of businesses with an ERP system installed are run- ning the first solution ever implemented in the company. That means 38 percent have bitten the bullet and replaced their ERP solution. This does not necessarily mean a change in solution provider; a replacement could mean a newer or different product from the same vendor, or it could mean opening the door for a competitive bid.
Of those that have replaced their ERP system, 65 percent also replaced their vendor.
When to Pull the Trigger
While the brain-surgery analogy is catchy and dra- matic, the better analogy is joint replacement.
Look to replace your ERP
system when the pain of using outdated technology, hard-
to-use software and missing features and functions becomes too great. Or, when your current solution simply can- not support your business needs.
There is of course a certain level of subjectivity in this type of decision, based partly on your company’s toler- ance for pain. If you want to climb
mountains or ski down them, you will be more inclined to replace that knee. Butifallyouwanttodoissitonthe couch and watch television, maybe not. Likewise, if you have no plans to grow your company and improve its performance, then your current ERP solution may be just fine, even if it
Hint: It’s not brain surgery.
Don’t wait until the patient is dying.
30 MetalForming/September 2012
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