Things to Consider When Choosing an ERP Software
There are a lot of many ERP software solutions out there in the market and choosing the right software can be quite hard. A lot of buyers normally pick a system and then adjust the business operations to match that of then software. However, as shown by the many failures in ERP systems this is not true and the wrong ERP chosen will lead to loss in time and money. 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 purchase of ERP is a business initiative and thus the buyer needs to conduct a SWOT analysis on the business so that they can use this information in the selection process. 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.
The other important thing to factor in is the total cost of ownership. Most vendors during the ERP sales process downplay the costs and risks that come with buying their systems. 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 The person needs to uncover these hidden costs that come with the ERP such as maintenance costs, software maintenance, back-filling on the project team and hardware upgrades.
The buyer needs to set their own implementation plan because sellers can give the buyer an unrealistic time frame. This plan needs to include things like software installation issues and other things like functioning, testing the software and the acceptance by end 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. This implementation plan should be very detailed and cover all aspects like the business process design, work flow design and other aspects like multiple test integrations, data integration and other aspects of the business like conference piloting. By adhering to the tips above the buyer can make an informed decision on choosing an ERP.