Engleman Associates

Why ERP License Contracts Are Not True Contracts

by

We are pleased to announce our latest educational video, “Contracts to Access ERP - Are Not Really Contracts”, now available on our YouTube channel and embedded below for your convenience. Designed for IT personnel and executives, this concise video examines why typical ERP license contracts from vendors are so fundamentally flawed that they fail to qualify as legitimate contracts.

Drawing on our experience with over 1,000 ERP projects since 1996, the video explains how ERP contracts often undermine buyer protections through vague language, unilateral seller rights to modify terms, and references to external documents with unclear precedence. These elements, combined with explicit constraints on buyers and broad seller privileges, prioritize vendor control and cost escalation over mutual agreement, particularly given the high costs and risks of changing ERP systems. The video also highlights how this industry trend has worsened over the past 15 years.

Watch the embedded video to gain critical insights into the deficiencies of standard ERP contracts and their implications for buyers. For guidance on securing appropriate commercial terms and costs, explore the related resources linked in the video description. Be sure to like and subscribe to our YouTube channel for ongoing ERP expertise. Thanks for your interest, and certainly call us with questions you may have.

Why ERP Software Contracts Are Nearly Useless for Buyers

Why RFPs Are Unsuitable for ERP Selection

by

We are happy to announce our latest educational video, “The Unsuitability of an RFP”, now available on our YouTube channel and embedded below for your convenience. Tailored for IT personnel and executives, this concise video explains why the classic Request for Proposal (RFP) process is ill-suited for evaluating and selecting ERP business applications.

Based on our extensive experience with over 1,000 ERP projects since 1996, the video highlights the mismatch between the RFP’s structured approach and the complex, nuanced nature of ERP decision-making. It explores four critical areas—functionality, cost, commercial terms, and implementation services—where RFPs fall short due to vague requirements, opaque pricing models, and the need for direct, strategic engagement with vendors. The video emphasizes that achieving optimal ERP selection, cost control, and durable terms requires hands-on, targeted interactions with sellers, which an RFP cannot practically facilitate.

Watch the embedded video to gain valuable insights into avoiding common ERP selection pitfalls. For additional resources, check the links in the video description and explore our full collection of ERP-focused content. Please like and subscribe to our YouTube channel for ongoing expert guidance.

RFP Approach Fails for ERP Selection

Unlocking Significant ERP Cost Savings

by

We are pleased to introduce our latest educational video, “Controlling ERP Costs: Achieving Significant Savings”, now available. This comprehensive 29-minute presentation, based on the insights from our recent white paper, Controlling Costs when Buying Access to ERP, addresses how buyers can achieve substantial initial and ongoing cost reductions when purchasing access to ERP systems.

Aimed at IT personnel and executives, the video draws on our experience with over 1,000 ERP projects since 1996 to highlight the often-exploitative practices within the ERP industry and the critical need for informed buyer strategies. It outlines actionable methods to secure cost savings, potentially reducing typical ERP lifecycle costs by 50% or more. Key topics include:

  • Initial Cost Reduction: Targeting up to 50% off standard ERP pricing through informed negotiation.
  • Ongoing Cost Control: Establishing escalation terms and fixed pricing for additional licenses or subscriptions to greatly reduce long-term expenses.
  • Avoiding Double Payments: Strategies to defer payments until go-live and mitigate costs when transitioning between ERP systems.
  • Protecting Future Flexibility: Securing rights for license retirement, conversion, and data access for retired ERP systems.

The video emphasizes the importance of aligning buyer needs with ERP capabilities, setting realistic cost objectives, and leveraging competition among vendors to achieve favorable terms. It serves as a practical guide for navigating the complexities of ERP purchasing while avoiding common pitfalls.

We invite you to watch this in-depth video below to gain valuable insights into controlling ERP costs effectively. For further details, explore the full white paper and related resources linked in the video description. Stay informed by liking and subscribing to our channel for ongoing ERP guidance.

Control ERP Software Costs

Selecting an ERP Implementer

by

Engleman Associates, Inc. is pleased to announce the release of our latest educational video, Selecting an ERP Implementer, now available in links below. Presented by Mark Engleman, this video draws on insights from over 1,000 ERP projects since 1996 to provide practical guidance for IT personnel and executives tasked with choosing an ERP implementer.

The video outlines critical factors for evaluating potential implementers, including:

  • Consultant team expertise, particularly the role of the big-picture analyst.
  • Billing rates for consulting and developer roles.
  • Proximity to improve timely on-site support, ideally within one flight leg to minimize delays.
  • Commercial terms that give buyers control over their project and deliverables.
  • Implementer adaptability to align with the buyer’s preparedness.

Additionally, Mark addresses common misconceptions, advising buyers to discount:

  • Statements of Work with unreliable consulting time estimates and costs.
  • Claims of superior methodology, usually just sales rhetoric.
  • General assurances from implementer leadership, which may not address underlying project risks.

Explore these video and our broader collection of ERP resources to support informed decision-making in your ERP initiatives.

ERP Implementer
ERP Implementer

Summary video
on Selecting an ERP Implementer.

Comprehensive video
on Selecting an ERP Implementer.

White paper on ERP implementation control

Is Cloud ERP Truly Easier to Implement?

by

We are excited to announce our latest educational video, "Is Cloud ERP Easy to Implement?", now available. Designed for IT personnel and executives, this video tackles the common claim that Cloud ERP is inherently easier to implement than on-premise single-instance ERP.

Drawing on our extensive experience with over 1,000 ERP projects since 1996, the video examines the origins of this perception, often fueled by Cloud ERP vendors’ marketing and the broader narrative of cloud solutions being “easier” due to managed hardware and software. However, it clarifies that implementation effort hinges on factors unrelated to hosting or payment models, including:

  • Complexity of the buyer’s business processes
  • Functionality and configurability of the ERP solution
  • The buyer’s ability to effectively manage the implementation process

The video underscores that while Cloud ERP may simplify infrastructure management, true implementation success depends on these critical factors listed above, not the deployment model.

We invite you to watch this insightful video to better understand the realities of ERP implementation. Explore additional ERP resources in the video description, and stay updated by liking and subscribing to our channel for future content.

Thanks for your interest, and certainly call us with questions you may have.

Is Cloud ERP Easier to Implement?