How To Shortlist And Select An ERP Solution Like A Boss.jpg

Now that you’ve decided to implement an ERP solution within your business’ IT ecology, you will soon be facing the proposition of identifying one vendor out of a pool of many. exclusive of being aware: The decision to go ahead with a vendor can take a long time when it’s a project resource planning product you’re considering.

ERP can bring tremendous synergies into your business practices and drive inter-department collaborations to the next level. On the flipside, if the ERP isn’t potent or suitable an adequate amount for your business, it could cause severe process bottlenecks and breed displeasure among users. The purchase decision makers, hence, need to recognize the need for careful and diligent evaluation of ERP solution pitches. Here’s a guide that will help.

Business first, tech second

Don’t commit the cardinal mistake of buying expensive technology without understanding why the business needs it so badly. Remember, no single ERP can deliver you the best of all worlds. There are some superb all-in-one solutions that get the essentials right for each business process, and there are niche superstars too. Your choice needs to be primarily driven by your organization’s business goals. To manage this, translate business requirements into technology functionality requirements and divide them into three categories.

  • Must have  The features that drive mission-critical business process success. These functionalities help organizations quickly achieve strategic, compliance, and revenue objectives.
  • ·Valuable These are features that add value to processes that are already relatively full-grown and operationally stable. Hence, these features are desirable, but not critical for the business.
  • Nice to have The features that add incremental value to existing processes but don’t impact many end users, so generally not deemed worth paying for. While comparing two equivalent ERPs, however, nice to haves could become a deciding factor.

Lay down the key guidelines

Your ERP solution will have an impact on every aspect of your business, regarding how information is recorded and processed. So purchase decision makers must actively work together with department leads and get a thorough understanding of their expectations, their key processes, KPIs, and constraints. Post-purchase disruptions and implementation bottlenecks can be avoided, and stakeholders buy-in can be ensured by concerning key decision makers into your discussions for prospective ERP solutions.

Based on these discussions, committees reach reliable conclusions about:

  • The major information management and analysis gaps that the ERP is expected to fill.
  • The key focus area of the club (sales, finance, inventory, human resources, and more) that the ERP is expected to improve significantly.
  • The timeline of implementation.

ERP vendor technology capabilities

Considering how strongly you’ll need to rely on the ERP solution provider for the entire lifetime of the deployment, their technical capabilities can’t be compromised upon. For anybody looking to evaluate objectively, it becomes crucial to evaluate vendors on these three aspects.

  1. Technology
  2. Deployment model
  3. Niche functionality

Estimating total cost of ownership

A critical aspect of evaluating, prospecting, and shortlisting ERP solutions for your business is to understand the total cost of ownership. The quote you receive from the ERP solution provider is at best a ballpark figure that can vary significantly from could you repeat that? you’ll eventually pay. Some of the essential questions you need to ask your vendors, and points to be very careful about include:

  • The cost of licenses spread across a category of licenses.
  • The cost of training the workforce to be able to use the ERP to the best extent.
  • The cost of hiring ERP experts to support and customize the software in due course of time.

Shortlisting ERP solutions from a long list

It’s quite natural for your ERP solutions providers list to bloat up if you don’t put in filters. This is the time to shortlist only the most dependable and potent vendors. Here’s how you can do that:

  • Float a formal request for information (RFI) for all participant vendors to truly showcase their abilities in tuning the ERP to suit your requirements.
  • Hire an ERP consultant to lend balance to the discussions and to ensure vendors don’t take it easy while showcasing technical capabilities of their products.
  • Evaluate the industry-specific experience, expertise, and reputation of ERP products and vendors, and shortlist the ones who’ve already served customers from your industry.

Plugging the selection gaps with smart questions

Even if you eventually decide to have a faceoff between two vendors to demonstrate their ERPs by actually mapping one of your complex business processes in the software, you will still need some questions up your sleeve. These questions will make certain the long-term triumph of your ERP solution.

  • How easy and affordable is to customize the ERP to accommodate your industry and business specific requirements?
  • How agile is the ERP in supporting new reports requests, automating report generation, and presenting insightful data in a visually enriching manner?
  • What kind of provisions does the ERP offer to limit the access privileges and roles assigned to different types of users?