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Tips on Choosing an ERP Software

There are a lot of many ERP software solutions out there in the market and choosing the right software can be quite hard. Most people think that any ERP software will be good for their companies and that the business will have to adapt to the system. However, as shown by the many failures in ERP systems this is not true and the wrong ERP chosen will lead to loss in time and money. 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 analysis should include what the person thinks the processes should look like in the future and what business requirements have to be met to achieve this. 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.

The other important thing to factor in is the total 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. If the buyer does their due diligence then they will be able to spot other extra costs like software maintenance, hardware upgrades, familiarization of the project team with the software and other things.

The person also needs to develop a realistic implementation plan because in the sales cycle the vendors might give an unrealistic implementation duration estimate. This plan needs to include things like software installation issues and other things like functioning, testing the software and the acceptance by end users. This plan has be available even before the buyer gets the ERP software so that the buyer has a realistic estimate on 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 adhering to the tips above the buyer can make an informed decision on choosing an ERP.

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