ERP Software

ERP Software Selection

The process of ERP software selection is intimidating. There are hundreds of vendors selling thousands of products and it is arduous and challenging for a particular business to sift through this information overload and choose that one software system that will provide the most benefit.

The Wall Street Journal recently published an article reporting the remarkable amount of value that the correct ERP software solution can create for a business, -and how the wrong ERP will create only problems. So how does a business make sure it selects the software that is best for it?

The first question to be answered is: what does the business have to gain from ERP software? ERP is an information software system that incorporates all the applications of a business’s operations and all its departmental functions into one single system that can be used by all the departments of the business. It is the solution to the problems caused by de-centralization.

ERP software, however, cannot change strategies, flawed processes, or poor management, so of the things it can fix –which ones does an individual business need help with? Identifying the needs and requirements of the company and then the benefits expected from the software is fundamental because the purchase and subsequent implementation of ERP software is expensive There is no getting around that initial cost, so a business has to be sure the ROI will be worthwhile. The cost of the ERP software cannot be so high that it will not pay for itself in a reasonable amount of time.

After a business has examined what it needs to improve its operations, the next step has to be an examination of specific future goals. Once a company knows where it is and where it wants to go, it can then begin to examine the array of ERP software available.

In the process of ERP software selection, a good follow-up to talking with various vendors who sell a product with the capabilities to help is to shorten this list by consulting comparable businesses who have recently bought ERP software systems. While this should in no way be the only criteria for software selection, it is an informative piece of information. Trade magazine articles and even ads provide useful data that businesses can use to pick and choose the most advantageous ERP software from the list.

Then, it is best to examine the vendors on the short list and ask them to draw up a specific proposal.  This proposal should be as detailed as possible.  All costs to the customer, including hidden costs such as loss of income during implementation, need to be part of this proposal. After all, it is not only a question of buying ERP software, but of discovering which vendor offers the best price, and, after the purchase, which provide the most implementation help, and long term support. 

Written by :

Amy Cruz