A Guide to Selecting ERP Vendors: 5 Best Practices
Whether your organization is implementing an ERP Solutions for the first time, or replacing a legacy implementation, it’s critically important to make the best selection.
An ERP solution is, at its foundation, a strategic selection. Are there any new capabilities that your organization needs or wants? What problems are you trying to resolve? Could you describe your core processes in a few words? How can new tools assist your organization in transforming into a digital organization?
We requested our expert consultants to offer us their thoughts on best practices in ERP selection, and this is what they told us:
1. Emphasize industry expertise.
Focus on IEM industry expertise when selecting an ERP vendor, together with (and particularly) your specific segment. Here’s why this expertise is vital: An Odoo ERP vendor might have industry expertise but might not have deep data of the unique Requirement of your specialized section. Look at its general presence in your vertical, too. Is its toolset extensively utilized by corporations like yours?
Ask your potential ERP vendors to inform you how they plan to be a number one solution in your marketspace. Evaluate its features and capabilities to see how properly they align with the industry’s challenges. Read the case studies and success stories supplied by the vendor — they’re a very good source of insight into how they construct solutions for corporations like yours. For your industry phase, ask for the product roadmap.
2. Assess the Total Cost of Ownership (TCO).
Establish a budget in terms of ERP implementation and total cost of ownership (TCO), then ask your potential vendors if your budget and their solution are a fit.
Software, first-year support, and implementation consulting are often included in a solution quote. (Additional sites and add-on modules will likely be extra.) TCO, however, is broader, and takes into consideration per-user license costs, training, maintenance, customizations, upgrades, internal costs and other fees.
If the system is within the Cloud or software as a service (SaaS), take a hard have look at the Service Level Agreement (SLA) for any hidden prices, similar to system enhancements and upgrades.
The scale and complexity of most ERP projects make it tough to get, and stick with, a fixed price. Be aware that ERP vendors that offer a fixed price might exclude vital work and training. All inclusions and exclusions should be identified and noted.
3. Consider technology strategy.
Know that an ERP solution should match the overall IT strategy of your organization. And because the IT division performs a primary role in figuring out whether an ERP system is possible, it should decide and provide any technology needs at the outset.
If on-premises ERP solutions are a consideration, the IT division might want to have the resources to maintain and improve the software, as well as be capable to provide the required infrastructure, servers, databases and security.
If the corporate is going with a cloud-based ERP Solutions, it’s still important to have the IT division involved within the ERP vendor selection process. There may be connectivity and integration issues with present ERP systems, particularly legacy on-premises systems.
4. Put the vendor below a microscope.
Where will the vendor be within the next 5 or 10 years? Many niche players have been acquired or merged with different ERP vendors — with each positive and negative outcome.
What’s important to your organization? The main ERP vendors offer big, broad solutions that will meet most of your needs. Specialized distributors offer “smaller” solutions that will meet your industry-specific requirements but will not be as strong in some core capabilities.
5. Speak with real clients.
Don’t let your ERP vendor get away with supplying you with a list of hand-picked customer references in quite a lot of industries.
To get one of the best ideas of how a solution will carry out for you, ask for references that have been on the solution for at least a year, are in the same industry as your company, are roughly the same size, and have similar requirements. Then make an effort to talk with these clients (significantly their ERP professionals) to get their insight, opinion, and suggestions. Choose one for an on-site visit.
By applying these best practices, your organization will better understand the strengths and weaknesses of potential ERP vendors. And it will be easier to
narrow down the list and choose an ERP software solution that may deliver higher efficiency, improved visibility, and an aggressive benefit.
Expertise is effective.
When considering an ERP project, consult Apagen’s consultants for invaluable insight into which ERP software solution will provide help to cut back prices, enhance effectivity and achieve your enterprise objectives. Contact us now!
