ERP Lawsuits: Are the Predictions Accurate?

by Alan Salton, abas-USA

Many pundits out there predicted that 2012 would be the year of “epic ERP lawsuits” and now well into the year, those experts may just be right.

We regularly read about manufacturers, processors and other businesses claiming breach of contract, negligent misrepresentation, willful misconduct, and fraud as they enter into costly litigation after experiencing dramatic cost overruns, never-ending implementations and other unfortunate aspects of bungled ERP implementations.

These lawsuits are unfortunate, and it’s fair to say that no party comes out the “winner”.  The manufacturer has to divert its resources and attention away from their core business to manage a resource-draining lawsuit over a failed ERP implementation.  Compounding the situation is that the manufacturer is back at square one, looking for another way to solve their ERP challenges even while the litigation is taking place.

Vendors are also challenged to assign resources to defend themselves in a very public court of opinion, siphoning their attention and focus away from the development and delivery of innovative solutions.

What Success Looks Like

We sincerely hope that news of these unfortunate lawsuits tapers off in the remaining half of 2012.

To that end, it’s been our experience that the most successful (litigation-free, we might add) ERP implementations have the following characteristics in common:

  • A cross-functional ERP selection committee that takes into consideration the overwhelming complexity of the implementation, and how it will exactly impact the organization’s specific operations and business processes.
  • A strategic approach on the manufacturer’s side to research companies in the same sector that have recently implemented ERP from the vendor being considered. This is an important step as a way to gather realistic “lessons learned” from those implementations.  What’s key here is that site visits are independent efforts, without the ERP vendor in attendance.
  • Once a vendor is selected, a shared sense of expectations, needs and requirements on both sides, including realistic workflows, process maps and clear implementation timelines and projects.
  • Involvement of a neutral system integrator or ERP expert who can help the manufacturer and vendor understand if a given solution is the right fit, and there is a match with capabilities, expectations, feature sets, and resources.

 

Connect with abas-USA today:

www.abas-usa.com

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About ABAS

Founded in 1980, ABAS is a leading provider of cost-effective ERP solutions for midmarket manufacturers and distributors. abas Business Software is an ERP & eBusiness application designed specifically for Assemble-to-Order, Make-to-Order, Made-to-Stock and Engineer-to-Order environments. abas Business Software is priced to fit most budgets while delivering full ERP functionality. Operating on LINUX, Unix and Windows, abas Business Software has the flexibility, scalability and ease of use that has demonstrated consistent ROI to its customers.

Contact Remi Candland at abas-USA, Sterling, VA

703-444-2500

sales@abas-usa.com For more information about abas ERP, visit www.abas-USA.com or email sales@abas-USA.com

 

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