ERP Risks

Why Fixed-Bid ERP Implementations Are Unrealistic: Insights from Engleman Associates, Inc.

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At Engleman Associates, Inc. (EAI), we’ve guided over 1,000 ERP projects since 1996, delivering practical, buyer-focused advice. In our latest ERP Now video, “Why a Fixed Bid ERP Implementation Is Pure Fantasy,” we address the misconception that ERP implementations can be accurately quoted upfront.

ERP projects are inherently complex, with unpredictable variables—unique business challenges, unforeseen obstacles, and evolving requirements—that make fixed bids unreliable. Like an uncharted expedition, the true scope and cost of an ERP implementation only become clear as the project unfolds. Vendors offering fixed bids may use them as a tactic to secure contracts, leaving buyers to face inevitable cost overruns.

The key to controlling costs and achieving successful outcomes lies with the buyer. Effective planning, disciplined execution, and proactive management are critical. Our new video explains why fixed bids are impractical and offers insights into how buyers can take charge of their ERP journey.

Watch the full video for actionable advice drawn from decades of experience.

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For more strategies on managing ERP implementations, explore our ERP Now video series linked in the video description. Contact EAI for expert guidance tailored to your ERP needs.

Enshittification and Its Impact on ERP Systems

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At Engleman Associates, Inc. (EAI), we provide IT professionals and executives with actionable insights drawn from over 25 years and 1,000 ERP projects. In our latest educational video, “Enshittification and ERP,” Mark Engleman explores the concept of enshittification—a term describing the gradual decline in quality of online products and services—and its significant implications for cloud ERP systems.

Enshittification follows a predictable pattern: vendors initially offer high-quality solutions to attract users, then shift focus to prioritize revenue generation, and finally degrade the offering to maximize stakeholder profits, particularly when users face high barriers to switching. For ERP systems, which are costly and time-consuming to replace, this degradation poses a serious risk to buyers who rely on these mission-critical applications.

The video outlines the enshittification process and discusses potential solutions, including technical and ethical reforms by vendors, which may require collective buyer pushback and advocacy to enforce. For individual companies now, achieving greater commercial and physical control over ERP applications and data is essential for mitigating these risks.

Watch the video for a concise analysis of this critical issue:.
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For further insights, explore the related ERP resources linked in the video description. Visit our YouTube channel for additional content, and share your thoughts in the comments below. Subscribe to stay updated on ERP trends and strategies.

Enshittification and Its Impact on ERP Systems

The Lack of Buyer Control in Seller-Managed Cloud ERP

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At Engleman Associates, Inc. (EAI), we draw on over 25 years and 1,000 ERP projects to deliver precise, buyer-focused insights for IT professionals and executives. In our latest educational video, “Buyer’s Commercial Control Near Zero - With Cloud ERP,” Mark Engleman addresses a critical issue with seller-managed cloud ERP systems: the near-total lack of commercial and physical application control for buyers.

Seller-managed cloud ERP, where vendors handle all aspects of delivery, leaves buyers vulnerable due to four key realities:

One-sided contracts: Modern cloud ERP agreements heavily favor vendors, often including provisions for unilateral changes post-subscription term.

No physical control: Unlike traditional on-premises ERP, where buyers owned licenses and hosted systems, cloud ERP buyers have little to no control over the physical infrastructure that delivers the ERP.

High switching costs: Replacing an ERP system, cloud or otherwise, is a complex process that can take a year or more, discouraging changes.

Rising costs: With limited buyer leverage, vendors face little resistance to increasing subscription fees.

This combination of poor commercial terms and lack of physical control places buyers of mission-critical ERP systems in a precarious position. In the video, Mark outlines these challenges and offers guidance on how buyers can push back.

Watch the video for a detailed discussion.

For strategies to address these issues, explore the resources linked in the video description. Visit our YouTube channel for more ERP insights, and share your feedback in the comments below. Subscribe to stay informed.

No Control Over Cloud ERP Systems