Top five challenges in finance ERP selections and how to overcome them

Here at VantagePoint, we are firm believers that selecting the right Enterprise Resource Planning (ERP) system for your finance operations is a critical decision that has invaluable scope to impact your organisation’s efficiency, reporting, data insight / analysis, compliance and bottom line. The possibilities are endless ! However … the process can be fraught with challenges that can complicate your journey and lead to costly mistakes if not addressed properly. 

Top five challenges in finance ERP selections and how to overcome them

In the first of our ERP Supplier Selection series, we are sharing the top five challenges our clients typically face when selecting a finance ERP system and how to overcome them.  

1. Identifying the right requirements

Challenge: One of the most significant challenges in selecting a finance ERP is ensuring that all the requirements are clearly identified and documented. Many organisations struggle with this due to the complexity of their financial processes and the involvement of multiple stakeholders. Yet, this is critical to any vendor and delivery partner when understanding the businesses requirements, costing the implementation and implementing thereafter, on time and within budget. 

Solution: Start by conducting comprehensive workshops with all key stakeholders E.g. finance, IT, procurement and senior management. There may be many more business functions that require consultation, which are critical to scope out at the beginning of the requirements gathering phase to ensure impacted business functions are included and considered from the outset.   

Use these sessions to map out your current processes, identify pain points, and outline your desired outcomes. Creating a detailed requirements document that prioritises features based on their impact on your business can help streamline the selection process. Detailed and consistently written requirements in this format are critical when relaying your organisations needs. 

2. Balancing cost vs. functionality

Challenge: Finding the right balance between cost and functionality is another common hurdle. A solution that offers extensive features might come with a high price tag, while a more affordable option may lack critical functionalities. 

Solution: Establish a clear budget at the outset and use your requirements document to evaluate ERP systems based on both cost and functionality. Consider the total cost of ownership (TCO), which includes implementation, customisation, training and ongoing maintenance. A cost-benefit analysis can also help determine if the additional features justify the higher investment. We would suggest using a return on investment (ROI) model to evaluate the investment and returns, to help decipher between the level of investment to commit against expected outcomes. 

3. Ensuring scalability and flexibility

Challenge: As your business grows, your ERP needs to grow with it too. Many organisations fail to consider future scalability and flexibility when selecting a finance ERP, leading to costly change requests, expensive upgrades or even replacements down the line. 

Solution: Choose an ERP system that is not only capable of handling your current business needs but also scalable for future growth. Look for solutions that offer modular add-ons, easy integration with other systems and regular updates. Engaging with vendors about their product roadmaps and their investment into their products can provide insights into how the system will evolve over time. Due diligence, research and exploring options are key, talk to multiple vendors and SI partners – ask the probing questions benchmarking against your organisation. Keep a comparative log to fairly evaluate what solution is not only fit for purpose today; but will be suitable as you grow and expand operations. 

4. Managing change and user adoption

Challenge: Even the most robust ERP system can fail if the end-users resist the change or do not fully understand how to use the new system. Change management and user adoption are critical to a successful ERP implementation, yet this is often an area underserved, despite being a critical part of an implementation of such scale.  

Solution: Invest in a comprehensive change management strategy that includes regular communication, training and support for all users. Start by involving key users early in the selection process to gain their buy-in. Provide hands-on training sessions tailored to different user groups and ensure ongoing support post-implementation to address any issues that arise. In evaluating the SI partner or vendor that is right for you, consider their change management strategy and the confidence that they will support your organisation to embed the change successfully. Also take into consideration the ways they will challenge your current state processes to ensure that you’re working in the most efficient and effective way capitalising on the functionality of your new ERP ! 

5. SI partner, vendor selection and management

Challenge: The selection of the right SI partner and ERP vendor is as crucial as choosing the right system. The wrong SI partner and vendor can lead to poor implementation, lack of support and ultimately, a failed project. 

Solution: Evaluate SI partners and vendors not just on their product offerings but also on their track record, industry experience and customer support capabilities. Request references from similar organisations and consider conducting site visits to see the ERP in action. Building a strong relationship with your SI partner and vendor is key to a smooth implementation and long-term success !  

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Need our expert help? 

Navigating these challenges can be daunting, but you absolutely don't have to do it alone. At VantagePoint, our Supplier Selection Experts specialise in guiding organisations through the complexities of finance ERP selections and implementations. Whether you need help with identifying your requirements, managing vendor relationships, or ensuring smooth user adoption, we are here to support you every step of the way. 

If you’re facing any of these challenges or simply want to ensure you’re making the best decision for your organisation, don’t hesitate to reach out to us. We’re more than happy to discuss how we can help you achieve success with your finance ERP selection. 

Get in touch with us today by clicking the button below to see how we can help your finance system selection.