Things to Consider When Choosing an ERP Software
There are so many ERP options that exist today such that selecting a package that works for one’s business can be a hard task. Most people have a tendency of choosing a random ERP software then adopting their business to the software. This is the wrong approach and it has led to many failures in business process due to failed ERP software. An ERP is supposed to make the business compete better thus its selection needs to be carefully done.
Since the ERP is a business initiative then even before commencing the selection process the buyer needs to familiarize themselves with the business processes, weaknesses and core strengths. This assessment needs to also look into how best the business can operate optimally in the future and what need to be done to get there. This data will then guide the person on the ERP software that they need in order to achieve their business goals.
Fundamentally the purchase of an ERP software is a business process but this does not negate the fact that the person needs to know how the software solution will fit into the existing technology framework.
Another important thing to factor in is the cost of ownership. Most vendors during the ERP sales process downplay the costs and risks that come with buying their systems. This calls upon the buyer to conduct proper research on the ERP software before buying it so that they know all then ins and outs of the software thus they can ask the vendor information on these future costs before they buy the ERP software If the buyer does their due diligence then they will be able to spot other extra costs like software maintenance, hardware upgrades, familiarization of the project team with the software and other things.
The person also needs to develop a realistic implementation plan because in the sales cycle the vendors might give an unrealistic implementation duration estimate. The buyer needs to come up with a detailed implementation project that covers not only the activities that are directly relate to the software installations but to other issues like that make sure that the solution is functioning well, has been tested and readily accepted by end users. This plan has to be created before the buyer agrees to buy the ERP machine so that they can be prepared for the cost of implementation. The implementation plan should include every nook and cranny of the business process and the design of the work flow to other aspects like data migration, multiple test iterations, conference room piloting and other key organizational change management activities. By adhering to the tips above the buyer can make an informed decision on choosing an ERP.