Factors to Consider When Choosing an ERP Software
There are so many ERP vendors out there such that choosing a good ERP software is quite challenging. A lot of buyers normally pick a system and then adjust the business operations to match that of then software. This is the wrong approach and it has led to many failures in business process due to failed ERP software. ERP is supposed to offer the business competitive advantage thus even the selection of the software should not be taken lightly or made with inadequate data.
The ERP is first a business initiative therefore the buyer needs to define the existing business processes, challenges and strengths that the business has. 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. These processes and business needs should be the criterion used to evaluate potential software vendors on how they demonstrate the capabilities of their ERP systems in view of the business needs.
Although the purchase of an ERP software is a business initiative the buyer still needs to know how the system will be made part of the existing infrastructure.
Another important thing to factor in is the cost of ownership. Many vendors have a habit of downplaying other costs that will come about after buying their ERP software. 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. There are various factors that need to be included such as issues to do with software installations and other issues like proper functioning, testing and acceptance by users. This plan needs to be developed even before the ERP software is bought so that the buyer can be able to assess the costs and the resources that will be needed to make the project successful. 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 following the above tips anyone can make a good decision on which ERP software to settle on.