How to choose the best ERP?

 

How to choose the best ERP?

With so many ERP ways in the marketplace today, selecting a right one for your business can be an overwhelming task. While many companies feel that any software will work and their organizations will simply conform to the functionality of the software, widely-publicized ERP failures indicate that this isn’t the best solution. Further, since ERP should be a transformational business initiative providing key competitive advantages to your company, the decision shouldn’t be taken lightly or made with incomplete information.

So what’s the best way to find the ERP solution that’s going to be the best fit for your organization? Here are some steps to help you choose the right software for your organization:

Conduct a process review and analysis. Since ERP is first and foremost a business initiative, you should first define and document your current business processes, pain points, and strengths. This analysis should also include what you think your processes should look like in the future (your “to-be” state) and the corresponding business requirements. These processes and requirements should eventually be used for potential software vendors to demonstrate their product’s capabilities within the context of your business needs.

Evaluate the technical fit. Although ERP should be a business rather than a technology initiative, it’s also important to understand how a potential software solution will align with your current infrastructure.

Understand the total cost of ownership. During the sales cycle, ERP software sales reps are interested in downplaying the costs and risks associated with purchasing their software. However, it’s a lot easier to accept potential costs early in the process rather than after you’re already committed to a particular solution. Be sure to uncover “hidden costs” associated with ERP, including implementation costs, hardware upgrades, backfilling your project team resources, software maintenance, etc.

Keep your options open.

Although this might sound more like dating advice, it also applies to choose an ERP solution. Contrary to popular opinion, there are more than two or three major vendors of ERP software. There are at least 70 feasible ERP software options on the market, all with different levels of capability and strengths, even though two to three software companies control the majority of the market share and marketing budgets. Too many businesses base their decision on the reputation of the brand or what their rivals are doing. Instead, businesses should think about the solutions that would best satisfy their own business needs and sources of competitive advantage.

Look for objective and independent advice.

Find out from coworkers, staff members, and other contacts what they use or suggest for a business similar to yours. Internet research is recommended, or you might employ an ERP specialist. In any case, if you haven't worked with ERP before, don't assume you know everything. To verify what software sales representatives are telling you, look for additional independent sources of ERP guidance.