To have a successful ERP implementation, it is very important to be careful about the selection of the software. ERP failure can be excessively expensive for organizations and therefore, organizations should spend appropriate resources in making the right decision about the selection of ERP Software.
Tips for ERP Software Selection
Define what type of ERP is needed - Accounting software or ERP, depending on the type of business one can define the needs. Vertical market software can prove to be a better option for some organization.
Buy an ERP product or hire an organization - There are two options to get ERP. The organization can either hire an organization or buy ERP. In case of hiring the software is maintained by the seller and cost of implementation is reduced but in case of buying the complete set up has to be implemented at the client's site.
Make a list of priorities - Make a list of priorities by defining the business processes of the organization. Group discussion with managers of all the departments of the organization helps in analyzing in details of the various processes which are required to be automated and it also helps in making a list of functionalities which is needed from the product.
Define the needed unique features - Define a list of features which should be present in the ERP. One can search for software that will provide particular functionality. Common functionalities are found in many software but organization specific functionalities may not be present in all the software.
Allocation of budget and defining jobs - Define the number of users, ease of implementation, unique features, allot employee who will dedicate their time to the project, define the budget, scope and timings.
Define the technology and hardware requirements - Define the choice of technology, hardware and software selection. The technology selected should be able to handle future load and it should be scalable. The common features sought in new software are data base strength, server options, future up-gradations, ease of use, e-commerce , bar coding, RF and EDI, features to support multi location, multi company, multi divisions, multi currency etc.
Define the need for reporting tool - Define the requirement for suitable reporting tool.
Make a list of suitable vendors - There are hundreds of ERP available in market. Therefore a list of vendors should be made who meet the need. Make a list of pros and cons of the software selected and calculate the Critical Success Factors. Define the success rate which involves success at reducing costs and increasing returns. The organization can see if it will have to make hefty charges to the providers to get new versions of the software or if the load increases. The increase in number of users should not reduce the speed or performance of the ERP.
Analysis of the risks - Seek out the impact of software implementation and the risks involved. Employees can be assigned the job of seeking out the risks and trying to find the problems and also find solutions to the problems.
