Things 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. Most people have a tendency of choosing a random ERP software then adopting their business to the software. This is the wrong approach and it has led to many failures in business process due to failed ERP software. An ERP is supposed to make the business compete better thus its selection needs to be carefully done.
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 assessment needs to also look into how best the business can operate optimally in the future and what need to be done to get there. 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.
Another important thing to factor in is the cost of ownership. A lot of sellers have made it a habit not to reveal the extra costs that come with buying their software. This requires that the buyer do their due diligence on these extra costs before committing to any software since this will save them a lot of time and money now compared to when they have already bought the software. In the research process they are bound to come across other costs like software and hardware maintenance and upgrade costs, bringing the project team up to speed on the software among other hidden costs.
Most vendors downplay the time required to implement the project thus the buyer needs to come up with their own implementation plan. 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 sticking to the points discussed above the buyer can make a logical decision on which ERP software is good for their business needs and will help them have a competitive advantage.