ERP software is a important decision for any organization. And to come to this decision, the foremost task is the ERP evaluation. What you need to prepare for is a state of conflict , which any new process the process of putting a decision undergoes, in this case, till the time you are Live on the ERP System.
Companies may sometimes ignore the importance of the ERP SOFTWARE selection process, something which should brace them well to see some ERP implementation a hidden , at best, no change in productivity, and at worst, a complete decision fail
This is the first step and also a point where a substantial number of organizations lose strength in ERP evaluation. Here are some of the common reasons that stimulate people to buy an ERP software system.
In fact, these are all the reasons that you should not bought ERP software. If productivity is a problem, then you need to work with basic principles first. If you can get all the information you need about the many processes in your organization in a satisfactory period of time, then spending time implanting ERP is completely a waste. This should be your careful thought while selecting ERP software:
Most companies, when looking to select an ERP Software have the excited to put an IT Manager in charge of the ERP evaluation. Unfortunately for them, IT Managers are more strongly attracted and interested. by the technology than by its functionality. So if the software doesn’t happen to be the latest buzz word in the tech world, it wouldn’t really request to them. The organization needs ERP software which matches or comes close to their functionalneeds. Does caring about the Technology help there?
The right team for an ERP Software selection process should basically be driven by people who can not only arrive at the optimal choice, but also drive ERP implementation effectively through the organization. IT managers should typically be a part of the ERP System Selection in an advisory capacity.
A ‘product’ is easy bought and used as it is. The ERP system can be bought as it is but can never be used in the same way. It has to go through some workarounds or customizations to suit the user’s needs, verticals or specific company’ need.
What this means is that when you do ERP software selection discuss, you don’t just select the Product, you also select the Service provider who will implement and establish the Product for you. A most common term for the Service Provider is an ‘implementation partner’. When you buy an ERP System, the evaluation of the ERP developing partner is far more significant than that of the product.
An ERP Product should either be close to your business or simple enough to adapt to your business. It is also important to find out how many organizations are use that particular ERP Software. A Product which is close to your business but with least Clients is a riskier proposition than a Product which is not that near to your business but has more Clients.
ERP selection process is a long time decision. You have to ensure that the Product which you are buying will stay in the long term. ERP systems with high user base typically last longer. It is possible that a Product close to your Business may meet all your requirements, but it can prove to be a disaster of it walks off the market. If buying and implementing an ERP is difficult, the changing over to another ERP can be a basic task.
What tends to happen in this period is that only the operational level information is given any importance. What you need is the top end analytics which can help show your organization. Another way to look at an ERP is how effective is the drill down from a highest level information to an item. So, for example, an ERP SOFTWARE is a good bought if it allows you to “easily” drill down from a calculate Sales figures to country wise, state wise, area wise, invoice wise or item wise.
The selection rule for the product also implement to the ERP software Implementation Partner. Look for an experienced partner, reference one which has been around at least a decade or so. As management, what you require to remember is that ERP Systems are not all about Software. They have more to do work with the management. An organization’s management experience falling across a diverse range of customers and verticals will always come in handy for you. Don’t forget to look for long time stability.
Another parts for ERP evaluation is to look at the commitment of the ERP Implementation Partner to the ERP business. If ERP Software spent just about 10 per cent to the overall revenue of the partner, then this is not an advisable choice. What you need to look for are people who have ERP as their major line of business and good part to back up their expertise.