Tips for selecting an ERP Software System

Where to start

The Internet is a great place to start your search for a new ERP system albeit the volume of information can be quite daunting. Of course, the Internet searches of an experienced buyer of ERP software will differ from buyers with less experience who may be drawn to a range of services and products, some free, that promise to simplify the process of buying new ERP software. More experienced buyers tend to hop straight to the products they have already determined will make up their short list. The biggest tip is to be sceptical about vendor claims. Check everything.

CitySoft has compiled some tips for new or less experienced buyers of advanced business software (ERP).

Excel Requirement Sheets

Available on the Internet for a fee or free, these tools are generally outdated and or incorporate functionality classifications that are nonsensical. At worst they are outdated, poorly constructed and created by a business or vendor pushing a particular ERP product without declaring so.

CitySoft, as ERP business consultants, drills down to a company’s specific needs. A spreadsheet checklist that determines you need a debtor’s module, and a general ledger chart of accounts really don’t progress matters.

In some instances, these requirements documents are sent to possible suppliers offering responses that are incomplete or open to interpretation often leading to issues between supplier and buyer. Relying on an unvetted requirements list can be problematic We once received a requirements document that contained a whole section on business needs totally unrelated to the buyer’s business.

Independent Consultants

Whilst there must be some independent ERP product agnostic consulting firms somewhere in the World, the ones we’ve crossed paths with have demonstrated a bias, unconscious or not, toward a favourite product which challenges their independent positioning.

Buyers may benefit from the engagement of an independent consultant who assists with the process of selecting a new ERP system. They can potentially help save time by streamlining shortlisting, evaluation and selection.

Solution Validity

As consultants who often come along after an ERP project disaster with instructions to sort out the mess, we’ve seen some incredible solutions that quite simply defy logic. It’s one thing for a vendor to claim they can do anything in IT with their skills and highly flexible software however there is also a real need for a solution to be sensible, practical and of value to the buyer. Often this point is overlooked by suppliers.

Both vendors in a direct sales model and vendor partner sales teams are looking to win business and this often leads to a default answer to requirements of Yes.

“Yes, we can satisfy that need.”

There are different ways a vendor or vendor partner can solution a requirement with risk, time and cost considerations. Buys need to be crystal clear on supplier solutions for bespoke or non-standard needs, or risk solution disappointment, unexpected costs and possibly project go-live delays.

Presentations

Some ERP systems are sold, implemented and supported by the developer of the ERP system. (A direct model). Other ERPs are sold, implemented, and supported by developer partners (Vendor partners) sometimes with the involvement of the software developer.

How many demos is too many

Viewing too many ERP systems can be time consuming and confusing for participants. Ideally narrow your presentations down to two or three products.

Sharing your key presentation requirements in advance of each presentation can help presenters focus on the things that matter to you.

It is common practice to invite your preferred supplier back for a second demonstration designed to clarify any outstanding questions regarding product capability or solution components.

Two key takeaways regarding demonstrations are that certain requirements you have may only be presented in concept at the demonstration stage. Suppliers should provide you with details concerning their customization tools, approach to customization and details concerning advanced configurations that will be required however are not present in their demonstration. This will assist you evaluate their solution.

Further Considerations

When evaluating a product it’s worth considering:

• • Vendor or supplier product market share
  • Product localization
  • Update history (Frequency & timeliness)
  • Update / version release content (Fixes and more fixes or mainly new capabilities)
  • Product lifecycle position
  • Vendor or partner expertise and experience