Why Businesses Switch ERP Technology Partners

With ERP systems playing a central role in business operations, the relationship with your ERP technology partner is crucial. Yet, many businesses find themselves seeking new partners. In this blog, we explore some of the common reasons why organisations are choosing to switch.

The author of this page: Conor Flanagan
Conor Flanagan, ERP Team Lead Jun 26, 2024

ERP software is the backbone of many critical business processes for many organisations. Providing a single integrated system for various business functions, ERP software helps organisations enhance operational efficiency, automate manual processes and deliver real-time insights. However, the success of an ERP implementation often depends on choosing the correct implementation partner. After all, ERP software implementation projects can be complex. Research shows that implementation can take 30% longer than expected and 51% of organisations experience operational disruption after going live. Therefore, having a reliable technology partner to support you through implementation and post-go-live support is key to ensuring maximum return on technology investment.

Yet, some businesses find that their chosen partner is not the best fit. Problems can arise for some businesses as early as implementation while for others the challenges are seen after the project has been delivered as they move into the support phase. Below we explore some of the common reasons why businesses consider switching their ERP technology partner.

1. Your Business Is Growing Too Fast

While business growth is generally a positive thing, an unexpected surge can put strain on existing technology systems. When businesses expand, whether it be from a new product line or new market success, the ERP system requirements change and the system needs to scale accordingly. Some ERP technology partners may not have the flexibility or resources to support your business in this way. If your current partner cannot adapt to your growth, it may be time to seek a new partner who can.

2. Dissatisfaction With The Service

A big deciding factor for choosing an ERP partner is usually price and many businesses often opt for the more reasonable option. However, this sometimes means compromising on the quality of service. Problems can begin during the delivery and persist into the post-go-live support phase. With ERP software playing a crucial role in business operations, having a reliable partner is essential. If your business is experiencing, slow response time, inadequate support and other service issues, it may be time to consider switching your ERP technology partner.

3. Lack Of Industry Knowledge

An ERP technology partner does more than set up your new system, they also act as business consultants helping tailor your system with the correct modules and integrations and offer advice around best practices specific to your industry. However if your partner lacks the necessary industry expertise, it may impact the quality of service that you receive leading to things like poor system configuration and missed business opportunities. If your ERP partner does not understand your industry, it might be time to find one that does.

4. Guidance Turns Into Sales

Upselling and cross-selling are part of a healthy technology partner and client relationship. Your ERP technology partner should keep you up to date with new trends, products and services that could benefit your business. However, some partners can overstep the fine line between guidance and sales. When long-term partners want to explore their options, not every conversation should be a sales pitch. This can erode trust and harm the relationship leading businesses to seek a new technology partner.

5. Partner Exiting The Market

The business landscape is constantly evolving and sometimes technology partners can decide to exit the market. This can be due to a number of reasons from acquisition to consolidation and closure. If your ERP partner is winding down operations or shifting focus, it can leave your business without the necessary support for your ERP system and mean that it is essential to find a new ERP partner to provide stability and avoid negative impacts on your business going forward.

Looking To Switch Your ERP Partner?

Switching your ERP partner is a significant decision that can impact your business in many ways. If you are considering switching your ERP technology partner, make sure to carefully evaluate potential partners based on experience, service quality, industry expertise and approach to client relationships. If your business would like to learn more about switching your ERP technology partner, get in touch today to speak with one of our experts or check out our recent blog Navigating the Transition: Tips for Moving ERP Solution Partners.

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