11 steps to conducting an effective ERP vendor due diligence

Reference checking is essential when choosing a vendor for an ERP system. With ERP systems having a greater than 85 percent failure rate, with the number one reason being poor initial software selection, it is vital that you get your reference checking right on your preferred application. When choosing a software vendor, there is a high risk of wasting many millions of dollars on a poorly implemented system, and it would be a tragedy if this loss simply came down to lazy due diligence.

Reference checking is so important because the relationship with a software vendor is not a short one (at least it shouldn't be). The analogy is like a marriage: you better get on in good times and in bad. If you have conducted your due diligence properly, you will have a good feeli...

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