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Lifecycle: Make Technology Decisions > Select: Selection Advice, Make Technology Decisions > Evaluate: Product Evaluations, Make Technology Decisions > Compare: Product Comparisons
Last Revised: 2010-10-18
Your Challenge
A single ERP system can pose management challenges. Multiple ERP instances magnify these challenges exponentially, particularly with consolidated operations, such as establishing a trial balance.
In multi-instance ERP environments, IT managers must trade ongoing licensing costs against maintenance complexity.
At the end of the day, some instances must be retired. Deciding which systems live and which die is a concern for many IT leaders.
Our Advice
Hypothesis
A two-tier vendor strategy is more effective than either a sole-provider, or local best-of-breed approach.
Technology replacement is driving new interest in Enterprise Resource Planning (ERP) products. Vendors have responded by improving functionality and creating architectures that effectively reduce total cost of ownership. Enterprises must still exercise the right level of due diligence to find the product that is right for them.
The process of selecting an enterprise software solution is complicated. Requirements are messy and RFP preparation is complicated and political. The effective use of a solution specification eases the process.
Enterprise Resource Planning (ERP) systems are a large enough investment to require a formal Request for Proposal (RFP). Knowing what to include and highlight can be the difference between getting what you paid for and investing in a dud.
Sufficient levels of ERP security are lacking in many ERP implementations, which can cause severe financial losses due to fraud and non-compliance. Mitigate these risks through effective security processes.