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Factors to Consider When Choosing an ERP Software

There are so many ERP options that exist today such that selecting a package that works for one’s business can be a hard task. Most people have a tendency of choosing a random ERP software then adopting their business to the 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 analysis should include what the person thinks the processes should look like in the future and what business requirements have to be met to achieve this. This data will then guide the person on the ERP software that they need in order to achieve their business goals.

Even though ERP should be a business as opposed to being a technology initiative it is still vital to comprehend how the potential software solution will fit in with the current technology infrastructure.

Another important thing to factor in is the cost of ownership. Most vendors during the ERP sales process downplay the costs and risks that come with buying their systems. However the buyer need to do their due diligence because it is easier to accept the potential cost earlier on before making the purchase as opposed to coming across them after making committing to a particular solution. In the research process they are bound to come across other costs like software and hardware maintenance and upgrade costs, bringing the project team up to speed on the software among other hidden costs.

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 has be available even before the buyer gets the ERP software so that the buyer has a realistic estimate on the cost of implementation. 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.

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