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. A lot of buyers normally pick a system and then adjust the business operations to match that of then software. However, as shown by the many failures in ERP systems this is not true and the wrong ERP chosen will lead to loss in time and money. 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
Since the ERP is a business initiative then even before commencing the selection process the buyer needs to familiarize themselves with the business processes, weaknesses and core strengths. 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 data will then guide the person on the ERP software that they need in order to achieve their business goals.
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 cost of ownership needs to be included in the selection process. A lot of sellers have made it a habit not to reveal the extra costs that come with buying their 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 has to be created before the buyer agrees to buy the ERP machine so that they can be prepared for the cost of implementation. The plan needs to be full proof and thus it should include other aspects of the business process like the design process, the work flow process and other change management activities. By adhering to the tips above the buyer can make an informed decision on choosing an ERP.