Let’s assume you’ve already decided that ERP it the path that is right for your company and also you have been ready to implement ERP system. Now it’s time to choose the software that will best fit your particular business. A common question when selecting ERP system is, “Which one is the best ERP, is it SAP, Oracle, Microsoft or any other else?” Well, it is not easy to answer it. However, I’ll share how to establish short-listed ERP vendor to help you find best ERP. But please remember that it is still possible the project can fail, even if it is the best ERP or right software choice.
Parameters for choosing the best ERP
A parameter you can use establishing sort-listed vendor is your business requirements that help you identify key requirements that the software ERP must have. Then you should create demo scripts to ensure that each vendor is demonstrating their product as it relates to your business processes. Otherwise, vendors like to focus just on their strengths and not on how fits with your business. Eliminate software that cannot fulfill the key requirements even they promise to customize or modify the existing features. Obviously you will need customization because no software package can meet 100% of a business specific but it is not recommended for key requirements except it is very unique that no software package can fulfill.
You should involve key users during demo evaluation and ask them to complete evaluation for each of the vendors in order to assess how well the vendor’s product address the key business requirements and demo script.
The evaluation is not limited to functionality assessment but also technical assessment. This should include items, such as scalability, ability to integrate with legacy system, etc. These technical factors may or may not weigh as heavily as the functional business requirements.
Budget is also a parameter can be used to filter vendors especially if your budget is very tight. For instance, you won’t implement Oracle Business Suite if your budget is less than $100000, right? But sometimes sales guys show you reports about their software’s assertion that companies that run their software are xx% more profitable than those that don’t. They are trying to encourage you increasing your budget and at the end, implement their software. You should be careful to the report because ERP is simply an enabler, and not the sole reason of increased business performance.
Now, with key business requirements and budget, you will have short-listed vendors. Next, you decide which software is the best ERP for your company.
Probably you are in a situation where you feel that you’ve already found the best ERP but it exceeds your budget. What should you do, choose other software that has less features or increase your budget?
I think you should calculate the ROI before deciding what action will be taken because it allows you to be able to predict how long the break-even if you purchase it. If your company can accept the ROI, go head increase the budget in order to implement the ERP. Otherwise you may choose other software.
That’s it from me. If you have any better ideas in choosing the best ERP, let me know. And remember that the best ERP software for other company is not always the best for you.