ERP Selection

Do I need to go Through an ERP Selection Process? – Part 2

Once you’ve identified your company’s unique ERP (Enterprise Resource Planning) needs, it’s time to complete the ERP selection process by selecting the right solution.  It’s best to narrow your ERP selection down to a few potential Enterprise Resource Planning solutions that best fit your organization.  Once you’ve narrowed your selection down to no more than five Enterprise Resource Planning solutions, it’s important to spend a significant amount of time demoing each product.  Involve your functional and technical folks and allow them to demo each of the five ERP solutions and be sure to get feedback from these folks.  You may also ask the Enterprise Resource Planning vendor for a trial.  There are not many ERP vendors that are willing to provide product trials, but it’s worth asking.  If the Enterprise Resource Planning vendor does not allow you to do a trial, you may want to ask to do a sample data test.

One “must do” task often forgotten is to check vendor references.  Talking with current and past clients of each ERP vendor can provide you with invaluable information.   Ask current and past clients to tell you the things they liked and dislike about their Enterprise Resource Planning solution.  You may want to ask about customer service or how their installation process went. 

Before you complete your Enterprise Resource Planning selection process, you must select one of the five ERP contenders. Functionality and references may be very important, but price often plays an even bigger role.  It’s typical for small and mid-size companies to be choosier when it comes to the price of an ERP solution because these companies often have less to budget.  However, no matter what the size of your organization is, the economy has driven many companies to save every penny possible.  So, shop price and negotiate when possible, which is always.  Also, don’t forget to include employee training costs, hardware costs, and potential consulting costs.  Consider doing a cost-benefit analysis and projecting your return on investment.

Enterprise Resource Planning selection is no easy task and should not be taken lightly.  There are an abundance of Enterprise Resource Planning solutions on the market making ERP selection more difficult than ever.  It’s important to be methodical when selecting an Enterprise Resource Planning solution and involve key personnel.  Keeping communication lines open will prove to be very valuable during this process.

Written by :

kristine H