Litigation between vendors and users of ERP software should incentivize those in the market for such a solution to take care to read the fine print before deploying a system to handle important business processes and company operations. In a recent article by InformationWeek, they detail many cases where disputes arose from disagreements around anything from licensing agreements to the functionality of the software, to accusations of negligent misrepresentation. In a business landscape where nearly every service is bound by accompanying accordance, it’s surprising that so much tension exists around ERP implementation with so much wisdom available.
So why are these partnerships turning to legal debate? The article suggests that much of the cause comes down to a need for basic planning and earnest insight into whether a software is a truly viable option for their business. The takeaway? Do the work to properly plan and analyze the obligations of your contracts to ERP vendors and avoid litigation as a result.
Below are a few suggestions for business and IT leaders to better hone in the specifications set out by your ERP vendor so you can make the best decision for your organization and, ultimately stay out of the courtroom.
Don’t forget about the details:
Details seem to hide in licensing agreements causing issues upon or after deployment of an ERP. In the article, they underline the fact that the lack of attention to licensing agreements regarding scope leads to many of the legal disputes between vendors and organizations with differences in interest between the parties—typically the vendor limiting the scope and the user wanting a broad scope.
Another aspect of delving into details is making sure that the ERP you select has key functionality for its intended purpose in your operations. Definitions and specifics should be clearly and painstakingly fleshed out and understood so parties can ensure they are making the right decision to deploy a particular ERP. Preparing use cases for vendors helps to align your needs with what the software provides. If you conduct upfront research to ensure that you are starting off on the right foot, this next point shouldn’t come into play; however, if things don’t match up, you should always look closely at the termination clause in a contract.
Before making the commitment to deploy ERP software, do your homework. Make sure that you understand and consider the legally binding documents associated with your agreement. An essential part of planning as a business leader is scrutinizing the details of every part of the process to make the right match for improved business operations.
Crossroads’ expertise in finance, management control, and ERP software are the solutions that many of our customers have found to be vital when evolving their financial and management processes. We can support your organization in identifying the best ERP fit for your business and achieve a successful design and implementation.
Crossroads is dedicated to delivering a zero-gap solution that minimizes expenses, allows for the reallocation of equitable resources, and provides a visible ROI. For more information about our ERP solutions, contact us at 1 (866) 216-4633 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Articles You Might Find Interesting:
Successful IT Budgeting 101 - Video
Cybersecurity in a Tech Innovation Era: Emerging Solutions for Prevailing Cyber Threats
Largest Credit Card Breach to Date Warns of Security Risks Associated with Third-Party App Providers
Share this article: