Things 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. Most people think that any ERP software will be good for their companies and that the business will have to adapt to the system. 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 ERP is first a business initiative therefore the buyer needs to define the existing business processes, challenges and strengths that the business has. This analysis should also factor in the future business process and what things have to be met to get there. 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. A lot of sellers have made it a habit not to reveal the extra costs that come with buying their 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 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 to be created before the buyer agrees to buy the ERP machine so that they can be prepared for 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.