Choosing the right enterprise resource planning (ERP) solution for your organization is a key component to a successful ERP implementation. Many times, implementations that fail to meet expectations and organization needs are a result of poor ERP selection methodology.
What is ERP selection methodology?
ERP selection methodology is the process for selecting the best ERP solution for your organization, and the goal of an ERP software system is to streamline and provide functionality to all business processes.
However, given all the potential ERP solutions, it is not uncommon for organizations to choose ERP solutions that are not a best fit – these can lead to costly and/or failed implementations. So, how does an organization go about choosing an ERP solution? Here are five ERP selection tips to get your organization started.
- Understand user requirements.
During poor software selection, organizations fail to understand all user requirements for current and future processes. Without a detailed understanding of user requirements, selecting the best-fit ERP solution is impossible.
- Don’t let cost make your final decision.
The cost of an ERP system and implementation is a concern for organizations, like it should be. It is critical to estimate the Total Cost of Ownership (TCO) in advance to avoid overheads. However, instead of over-emphasis on the cost, pay attention to other areas, such as the ERP system functionality, infrastructure and e-commerce capabilities. It is essential for software functionality to fit with the future business process needs of your organization. With that said. . .
- Don’t waste time on basic functionality.
ERP systems have matured and have well done basics. Focus on unique requirements that are specific for your business or industry.
- Conduct an industry analysis.
It is important to choose an ERP solution and vendor that understands your organization and industry. When meeting with potential vendors, define all components that make up business processes and ask how their ERP software solution accomplishes each process.
- Choose a vendor that meets the maximum requirements.
View a demonstration of an ERP solution from a vendor with the components you discussed. It is essential to work with a vendor that provides the most effective, easy-to-use solution for all your needs.