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 think that any ERP software will be good for their companies and that the business will have to adapt to the system. This approach is wrong since it means that if the ERP software fails then the business processes grinds to a halt. The main purpose of an ERP is to improve business process and make it better thus one needs to be careful on the ERP system they choose
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 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 information should inform the buyer on which ERP software to choose because it meets the business needs of the person.
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.
Another important thing to factor in is the cost of ownership. Many vendors have a habit of downplaying other costs that will come about after buying their ERP 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.
Most vendors downplay the time required to implement the project thus the buyer needs to come up with their own implementation plan. There are various factors that need to be included such as issues to do with software installations and other issues like proper functioning, testing and acceptance by 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 sticking to the points discussed above the buyer can make a logical decision on which ERP software is good for their business needs and will help them have a competitive advantage.