IT strategies: Finding the right ERP system
Sally Reynolds, Syscom, PLC -- Manufacturing Business Technology, 7/15/2008 9:09:00 AM
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Purchasing an ERP system represents a substantial investment—and one of the most important decisions a company can make—so selecting the right system is crucial.
The key elements of a successful selection process are knowledge of your business processes, a clear idea of what you want to achieve and an understanding of what ERP systems and suppliers are offering.
Key points to consider:
• Functionality – Be sure to have an idea of the crucial functionality a system needs to provide to help eliminate unsuitable candidates. This also helps to highlight unnecessary extras you may not require.
• Budget – Prioritizing the functionality that a system needs to provide in order to identify which capabilities are essential and which are optional extras can also help you to set a realistic budget and gauge which system will provide the best return on investment (ROI). When comparing quotes remember that there will be implementation, staff training, and annual support costs in addition to the software price.
• Staff input — Polling your staff regarding what functionality they would find most beneficial can draw attention to some important considerations. It also will make them feel involved in the selection process, which in turn should make them more receptive to what is likely to be a significant change in working practices once the new system is installed.
• Out-of-the-box or template driven? A template driven system can give you the freedom to tailor software to exact specifications while an out-of-the-box solution is ‘ready to go’ with a customizable user interface. It is worth bearing in mind that template driven systems could prove costly and involve lengthy set up.
• Writing an ITT — Some companies choose to write a detailed requirements specification (or invitation to tender ITT document) for vendors to respond to. This can speed up the selection process, although you will still have to choose which vendors to send the document to and go through the demonstration process with them.
• Hiring a consultant — Software selection consultants can help with writing an ITT document and narrowing down a list of vendors. There is, however, always the issue of how to go about choosing the best software consultant. If you do decide to use a consultant, they should only help and guide you. The consultant should not go beyond preparing options for the management team to consider and make clear the relative merits of the solutions.
Choosing a Vendor
You will rely on your IT vendor throughout the implementation process, for staff training, and for ongoing system maintenance so choosing a software provider is an equally important aspect when selecting a business solution.
Key points to consider:
• Experience in your sector – Find a company that understands your industry and business drivers. A glance at a company’s customer list is often a good guide as to their field of expertise.
• Resources – How is their business organized? Ask for an organizational chart of the companies you are considering. This will allow you to see the staffing emphasis of the company and the division of labor.
• Location, location, location – Consider where a supplier is based. Although many vendors now provide software support via the Internet and telephone, some companies prefer to use a local software supplier.
• Accreditation – Many vendors need to pass rigorous exams in order to resell certain solutions so checking out a reseller’s accreditation can help you to compare vendor expertise. Microsoft Partners, for example, must complete certification exams each year in order to retain their status level.
• Future-proof your investment – Consider how the product is distributed. Is this through a channel of partners or by the author? Investing in a solution that is available through a partner channel can give you the security of knowing that your system will always be supported.
Sally Reynolds is the marketing manager at Syscom PLC., a U.K-based provider of integrated ERP solutions for small and medium size businesses. Syscom works within a variety of industry sectors, but specializes in providing solutions for distribution and manufacturing organizations. Syscom has been a Microsoft Business Solutions Partner for Microsoft Dynamics since 1996, and became a Microsoft Gold Partner in 2004.
