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The Past, Present and Future of ERP Systems (Continued)

packages during the 1980's such as lot control and multi-plant.

· Consultants still had major learning curves to be expert in the software but were getting better. Project management skills were the next step.

· Users were becoming used to running their own reports and entering their own data. This forced them to be more aware of the functionality of the software.

· Software firms touted the advantage of "public education" and conducted large classes with employees from many different companies attending as a part of their implementation methodology. Students would be forced to sit through areas of the software that did not apply to their various situations.

· Independent software consulting firms (often programming houses) began to spring up everywhere. Vendors started partner programs that demanded certifications (which often never happened) on their products.

· Y2K forced many software users to move to the latest version of their software. Vendors were blinded by the increased revenue from maintenance reinstatements and new licenses and ignored the voice of the user base.

· Millions were spent to become Y2K compliant. Usually there was no other benefit gained. CEO's cut IS budgets, sometimes for years.

The paradigm now and in the future is:

· Customer service is the number one priority with software users. The vendors must be responsive to keep them happy. The days of forgiveness for poor customer service because we are on the bleeding edge of technology are long gone

· Methodologies are still touted but very few software or consulting firms actually follow one in day-to-day business.

· Those select firms that have and follow methodologies continually improve and fine tune them

· In most cases the original teams from MRP implementations have disbanded and left the company. There are very few original ideas by

software vendors. Sales are harder to come by and attention is turned onto the existing client base. This means maintenance is important once again to the vendors as are add-on product sales

· There are fewer and fewer new ERP sales.

· The message to vendors is, "If you make me happy I'm here to stay." Most vendors never listen to what that means.

· The number of ERP vendors will be smaller and smaller every day through consolidations in the industry

· Users are making their voices heard by leaving the unresponsive vendors

· Most new implementations actually go live on the software

· The user community is beginning to realize that more complex software is not always better software

· ROI is becoming an expectation for every major software project. Most CEO's remember the Y2K hype

· As a client's software life cycle matures, service and support become more important.

The smart software and service vendors will seek to build long-term customer relationships through:
· High quality services
· Strong leadership
· Listening to customers
· Exercising personal initiatives

It's obvious that many vendors have failed miserably in this respect. Ask yourself if you have a partnership with your vendor? Partnership is a Buyer/Seller relationship with the following attributes:

· Customer expectations keep going up as they get better service

· Customer satisfaction is key

· Some 70 percent of customers leave a vendor because they don't feel they have a business relationship with that vendor

· The cost of acquiring a new customer is five times the cost of keeping an old one

· Value is only delivered by satisfied and loyal employees

· A true partnership that works involves honesty, trust, commitment, and

sharing plans for the future (and living up to them)

Another good question to ask yourself is, "Am I getting good service?" Good service means world-class responsiveness and nothing less.

How about the value you receive from your software vendor? Value is defined by:

· Delivering what is promised

· Meeting business needs and
helping serve your customer's customers

· A reasonable ROI

· Products work as advertised

· Efficiency and improved performance

· Technology leadership

· Industry knowledge and vision

· Getting it right the first time

No software vendor is perfect. Their sales forces turn over often and unfortunately are often your primary contact with the vendor. So, what's the answer? Open and honest communication is the first step with any partnership. Let your sales representative know what you expect and want. Do not settle for second best. You have a choice on whom to spend your money with.

Make sure you put your important communications in writing. If it's not in writing, it doesn't exist. Hold your vendors accountable for their actions or lack of actions. Set expectations (in writing) up front so everyone knows what to expect. No one likes surprises.

Always check three references before making any major purchase, whether it's software or services. This will save you money in the long term.

Become active in the user group and lobby to keep it independent from the vendor's control.

The future of ERP software is defined in broad strokes already, but you have a voice in which firms succeed and which fail.

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