ERP Selection Criteria

Now that you perceive what ERP software is and how the choice process works, we'll going to get into the aim of this blog. Below is our list of important ERP selection criteria. You can use these criteria all through all phases of the ERP selection process to assist determine if a solution is best for you.

1. ERP Selection Criteria - Functionality and Ease of Use

the thing within the ERP selection process, we have now some standard inquiries to brew over: What are the system’s functionalities and ease of use? And what functionalities and degree of user-friendliness do you want? Answering these questions will assist you to determine if the product is the best match for your enterprise on a fundamental level. This standard could be the most prolonged and mundane to finish – it includes an in-depth analysis of your organization and the ERP product – however, maintain tight. This evaluation is significant to work.

Taking the next actions might help you higher perceive ERP software, collect your requirements or compare systems:

  • Requirements Gathering – Consider the present challenges your organization faces that might be solved or decreased with an ERP system. Then, consider which of the system functionalities would accomplish this.
  • Consider Business Process Automation – Think of all the routine enterprise processes at your group that might be automated and consider if the actual solution has the tools to try this.
  • Examine End-Users – How tech-savvy are your end-users and do they have the capability to navigate advanced software features? Have they used an ERP system earlier? Answering these questions will assist you to decide if the products’ user-friendliness is as much as par along with your necessities.
  • Plan for Centralization – Consider the systems you presently use that may have to be integrated together with your ERP system and inquire about integration prospects.

2. ERP Selection Criteria -Vendor Viability

Before you become invested in a specific solution, it’s sensible to ask yourself: What is the vendor’s fame, and may I work with them long-term? Even if a product comes with the right performance, it ought to be out of the query if the corporate isn’t reliable and safe. Beyond company credibility, you should evaluate the product’s scalability to find out if this is usually a lasting transaction.

Analyzing vendor viability ensures not only an excellent system but an excellent associate for your enterprise. Consider the next elements when evaluating ERP techniques and the distributors that provide them:

  • Company Credibility – Investigate how the seller has modified organizationally lately and inquired concerning the future path of the vendor’s enterprise. In addition, contemplate the age and monetary well being of the company.
  • Product Viability – Find out how long the ERP product has been available on the market and seek references from their clients. Ask the seller how long they intend to maintain working the product and often distribute updates or enhance it. If you need to cover your entire bases, ask the vendor in regards to the products they plan to problem within the coming years.
  • Scalability – Reviewing product scalability requires you to look internally and into the future of your enterprise. Will, you should add customers in the future or increase performance? Does your group have the potential to increase into new markets? Consider if the system features can help and improve your enterprise strategy. This consideration is critical for young, growing companies to think about – your chosen ERP system needs to have the ability to develop with you.

3. ERP Selection Criteria - Technology

There’s a great deal of expertise weaved into ERP solutions – for instance, standard software ought to include capabilities associated to enterprise intelligence, reporting and customization. Like the performance analysis, you must ask yourself: What technologies do the solution providers, and what technologies do we need? Consider the mentioned below factors whenever you are prepared to match ERP or are actively performing your software choice process:

  • Customization – Think about whether the solution is turnkey or customizable to your organization and unique enterprise processes. If the solution must be custom made to function, guarantee the seller can complete the request.
  • Requirements – Consider whether the ERP solution can meet the technical needs of your business. For instance, can it generate visible, real-time sales reports for displays?
  • Value – Evaluate whether the ERP leverages the most recent, cutting-edge technology and if the vendor plans to replace the system persistently. Considering this factor ensures that you simply aren’t investing money and time to implement a system that quickly will turn into outdated.

4. Cost

It could feel obvious that you must think about the price of an ERP system, however, sadly, it’s not so simple as it sounds. With a number of disparate components to account for, it’s essential to ask your self: What will the true cost of the ERP solution be? The true value consists of licensing charges, which depend upon what number of customers you've, the software itself or the modules you choose, hosting or hardware, implementation, maintenance, training and support. It’s wise to find out a rough estimate of your ROI earlier than you signal any sort of contract.

Consider the following elements while evaluating the cost of an ERP:

  • Basic Pricing Information – First, evaluate the price of the platform and whether or not it's applicable for the functionalities and technologies it gives. If the vendor’s pricing construction is unjust, you'll be able to probably discover one other product – there are plenty of fish within the sea.
  • True Cost – Next, work on determining the true value of the solution. Calculate the long-term total cost of ownership (TCO), ensuring to include all applicable costs from the record above.
  • ROI – Once you have completed the latter evaluations, estimate whether or not the projected  ROI (Return on Investment) shall be considerably more than the TCO.

5. ERP Selection Criteria - Support and Training

Support and training are the items of the pie that get a system up and running and functional always. In the current ERP market, there’s a wide range of what vendors provide for support and training. A complete training plan typically consists of access to training movies or documentation, an online knowledgebase or user group and options for in-person training. Complete support sometimes includes access to a name middle in addition to numerous online resources. Conversely, some distributors provide no help or training or outsource support and training.

While considering these factors, it’s very important to take an in-depth look: What type of help and training will you receive? What sort of support and training do we want? You ought to evaluate support and training choices, ensure they’ll work on your end-users and draw an obvious settlement with the vendor.

Think over the following elements whereas reviewing support and training:

  • Needs of the End-Users – First, take some time to think about the needs of the end-users. What kind of training, similar to face-to-face versus digital, would be the handiest and efficient for the end-users? Do you've an internal IT crew that may help with technical support, or will you rely solely on external help?
  • Pricing – Is the price of help and training included within the licensing charges, or will this be an additional investment?

6. ERP Selection Criteria - Industry Expertise

Industry experience primarily refers to a vendor’s capability to cater to your particular needs. Depending on your necessities, you very properly might be able to discover a solution that’s designed particularly for your enterprise kind and size. Garner main benefits when working with a vendor that understands your enterprise and permits for business practices constructed into the system. Ask yourself: Does the character of your enterprise require a specialised platform?

  • Expertise – Consider how lengthy the seller has laboured in your specific business and if they’ve confirmed success within the business

7. ERP Selection Criteria - Implementation

Implementation is significant to getting your new ERP system up and working. It’s good to ask how the seller will guarantee a successful installation. This step shall be important if you anticipate an involved implementation, similar to migrating from a legacy system to a brand new ERP. Here’s a quick overview of what a successful installation plan requires:

  • Ideal Software: Find the best solution with Lean Selection or one other methodology.
  • Plan: Gather an implementation staff and construct an installation plan. Also, allocate and carry out project management duties.
  • Transfer Data: Perform in-depth knowledge evaluations to decrease repetitive data. Your firm data is the inspiration of any ERP system until you’re ranging from scratch.
  • Train Users: Access and distribute training materials to the designated end-users.
  • Conduct System Tests and Launch: Perform program checks to make sure the solution has an appropriate interface and performs your whole desired features successfully before and if you go reside.
  • Post-Launch Duties: Analyze ROI, study employee performance, monitor shopper satisfaction and measure different firm KPIs to gauge the software’s outcomes over time.

We’ve concluded our list of ERP software choice standards. You can use this list to judge solutions all through your whole software choice process.

Author's Bio: 

Business solution-centric Odoo Consultant and IT professional with about 11+ years of experience spanning Odoo delivery, Sales, pre-sales, Odoo product development, Odoo business consulting, outsourcing & ADM services in leadership positions.

• Has headed Practices for Enterprise Solutions ( SAP, Baan & Odoo )

• Experience across domains likeSales and Marketing, Logistics, Manufacturing, Retail, Chemical, Automotive maped to Odoo

• Extensive experience in large program delivery & business process transformation consulting (Odoo Consultant) for multiple programs

• Demonstrated experience in designing new product & service offerings and executing global Go-To-Market strategies for new offerings for new market penetration

• Proven leadership skills with balanced focus on people, processes & technology

• Pioneered the use of ERP systems in various Processing Industry

• Worked as Process Heads of Marketing, Sales, Purchase, HR, ERP Project deliveries and also worked as Business Heads for many companies like IBM, JKT, Denave India, FCS and presently at Apagen