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. 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 information should inform the buyer on which ERP software to choose because it meets the business needs of the person.
Fundamentally the purchase of an ERP software is a business process but this does not negate the fact that the person needs to know how the software solution will fit into the existing technology framework.
The other important thing to factor in is the total 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 The person needs to uncover these hidden costs that come with the ERP such as maintenance costs, software maintenance, back-filling on the project team and hardware upgrades.
The buyer needs to set their own implementation plan because sellers can give the buyer an unrealistic time frame. 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. The implementation plan should include every nook and cranny of the business process and the design of the work flow to other aspects like data migration, multiple test iterations, conference room piloting and other key organizational change management activities. By following the above tips anyone can make a good decision on which ERP software to settle on.
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