ERP Implementation and Selection Mistakes

Don’t just rely on the vendor’s scripted walkthrough during an ERP demo. Ask targeted questions that reveal gaps and how the system performs in real-world use. For instance, request a demonstration of one of your actual workflows, such as subcontractor billing or multi-project reporting.

Clarify which features work out of the box and which require customization, and be specific about licensing terms, including potential user caps, hidden module fees, or integration costs. Finally, assess how reporting works in practice, ensuring that non-technical users can generate reports without depending on IT. The goal is to look beyond polished screens and evaluate how well the ERP fits your business day-to-day.

It’s possible, but it comes with significant risks and costs. By the time problems become obvious, contracts are usually signed, data migration is underway, and staff are already trained on the chosen platform. Switching vendors midstream often means writing off sunk costs and restarting project phases from scratch.

If early warning signs emerge like misalignment with workflows, lack of vendor responsiveness, or repeated scope changes, they should be escalated quickly. In some cases, it’s better to pause and renegotiate with the existing vendor than attempt a complete switch.

Vendor references are often cherry-picked. Go beyond the polished success stories. Ask for references in your specific industry and of similar size/complexity. Request direct contact details and have candid conversations with actual users. Search for independent customer feedback on professional forums or LinkedIn groups. Ask references about the challenges they faced, not just the benefits. A reliable vendor won’t hesitate to share lessons learned.

Be alert to vague or one-sided clauses when reviewing ERP contracts, as they often hide long-term risks. An undefined scope of work can leave room for costly “change requests,” while the absence of fixed timelines or milestones may allow implementations to drag on indefinitely.

Expensive exit or termination clauses can trap you with the vendor, and overly broad customization terms may force you to rely on them for every change, driving up costs over time. To avoid these pitfalls, have contracts reviewed not only by legal experts but also by functional stakeholders who understand how the ERP will be used day-to-day.

Yes. Local expertise often makes a significant difference, especially for compliance-heavy industries. Vendors with a regional presence understand local tax rules, labor regulations, reporting standards, and even language nuances. They also offer faster support due to proximity and often have relationships with regional regulators and auditors.

For businesses in markets like the UAE, choosing a vendor with proven local experience reduces risks and ensures smoother adoption.