After selecting the type of ERP software for an organization, one should compare the features of various vendors. Make a list of vendors who can provide the best services in the defined budget. Some vendors provide Generic Systems where the customers and resellers are more and the vendors can provide better support after the installation of ERP.
The second type of system is the industry specific, in which, the software can provide additional functionalities based on the need of the company, and the third type of sellers provide custom products, which can provide customizations as per the requirements of an organization.
Steps to make an analysis of the vendors
Know the background - Research on the background of various vendors to find out their reliability.
Know about the capabilities - One should see if the executive staff of the vendor is knowledgeable enough to deliver the software as per the requirements or not.
Issue Request for Proposal (RFP) - Find the list of ERP provider and issue a request for proposal. In the RFP, one can mention the queries related to the price, technology, and customer lists etc.
Request for demonstration of the software - The vendor should be aware of the critical success factors and the basic requirements of the organizations. After seeing the demonstrations, one can see which software best suits the need of the organization.
Compare the capabilities of the software teams. One can see if the team was able to answer the queries which were asked during demonstration or not. Can the supplier provide unique features or not?
Study the project management documents - Know about the technical support's experience and expertise in solving non-technical and technical bugs. The years of experience of the software providing company and the time when the product was released, should be known. The profits made by the company, its market presence and yearly headcount can be sought. The project teams should be reviewed and see if the implementation will provide profitability or not.
Review the product functionality - By assessing the overall requirements, menu structure, help files, customizations, complexities of the product, reports etc. one can see the product's functionalities.
Negotiate the contract with the provider - As the number of providers has increased in the market, one can get a competitive price for a software solution.
Allocate and compared budget - Buyer should make a list of expenses including the expense on staffs and time directed towards implementation of software. The cost includes license fees, support, implementation, hardware, technical costs, networking and communication. The costs should be compared with the implementation cost of services to software of organization of comparable sizes. The cost can vary depending on the vendor and other conditions.
Narrow down the list of software providers to get the ideal provider - Software implementation becomes an easy process when all the members of the organizations are allowed to give their views in the initial stage of client's selection. Depending on need of functionalities and ease of implementation, one can narrow down the list of software provider and request for a boardroom pilot of the final product.