Since the mids, when there was widespread introduction of computer packages into leading companies to assist in Material Requirements Planning software companies have strived, and for the most part succeeded, to create packages that assist in all aspects of running a business from Manufacturing; Supply Chain Management; Human Resources; through to Financials. This led to the evolution of ERP Systems. Accordingly, a significant number of packages purporting to be ERP systems have entered into the marketplace since ]. There are also packages that claim to be best of breed for certain processes [such as Planning] and sold merely as an add-on to an ERP System.
But this claims are not necessarily true. Moreover, some ERP solutions might really be one of the best in the market, but will they cover your company specific needs and serve you in a way that will support your business growth?
Investing in the right ERP solution is a crucial process which involves people from different organization levels and departments in order to ensure that the new ERP solution will increase productivity, cut operating costs, boost efficiency, increase revenue, etc. But with so many options available today, a company needs to have clear selection criteria in order to make the right decision and choose the ERP that best suits its business needs.
The following steps will help you discover and adopt an optimum ERP solution for your business: Why do we need an ERP system? Before even start searching for an ERP vendors you should ask yourself: Why your company needs an enterprise resource planning software ERP?
Or if you are already using one, than what are the reasons for changing the old ERP with a new one? Make a wish list of all basic and specific requirements that you expect from the new ERP provider. Also make a list of your expectations regarding business improvements such as: Usually this team should be consisted of corporate officers and senior management but also should include relevant employees from different organization levels and departments in order to ensure that the new system will solve all existing problems.
Give the leadership to someone who has a vast knowledge of the existing system and its problems. The appointed team should examine our business processes and prepare a list of needed requirements that must be present within the new ERP.
Consider the functionality and also adaptability and responsiveness of system to avoid higher consultants cost. What application area do you cover?
|An ERP Selection Methodology Example||How do you ensure that you evaluate and select the most appropriate system from the vast range available on the market? The requirements that contribute most to business benefit then become key drivers for the selection process.|
How many clients do you have? Do you have structured implementation methodology? Do you provide local customer support in different countries?
It is important to determine some selection criteria when searching for the right ERP solutionand also to create a score card so that you can rang all ERP features from a specific vendor. When creating the selection criteria consider the following table: In the table you should write the score for each feature that a specific ERP Vendor provides.
After you finish grading the features of the different ERP solutions, sum up the total score for each vendor. First of all, have in mind that you should take in consideration 5 to maximum 10 ERP vendors.
It is important to determine some selection criteria when searching for the right ERP Vendorand also to create a score card so that you can rang the vendors. The process is the same as in the previous step. Consider the following table: Write down the score for each ERP Vendor.
After you finish, sum up the total score for each vendor. Consider the vendors with the highest scores and continue with the next step: Shortlisting vendors and asking for a Demo presentation of the system. After narrowing down the selection process, ask the shortlisted vendors that understand and solve the problems, and to give you a demo presentation of the system they have.
This new process starts with finalizing the service contract, license and maintenance agreement. It's only fair to shareDuring the ERP software selection process, many organizations struggle to understand and compare vendors’ statements of work.
Some of these organizations hire ERP consultants to help them navigate the cost variables and negotiate favorable terms.
Welcome to ERP Selection Help. We understand that selecting a new Enterprise Resource Planning system is probably one of the most difficult things you will do in your professional career. It is a project filled with many potential obstacles and also periods of great excitement.
ERP Selection Methodology Wikipedia defines a methodology as “A documented process for management of projects that contains procedures, definitions and explanations of techniques used to collect, store, analyze and present information as part of a research process in a given discipline.”.
florida international university miami, florida a methodology to select an enterprise resource planning system for a small or medium sized enterprise. This dissertation, written by Richard Burton, and entitled A Methodology to Select an Enterprise Resource Planning System for a Small or Medium Sized Enterprise, having been approved in respect to style and intellectual content, is referred to you for judgment.
Methodologies to implement ERP systems are they PMBOK guide compliant? Tweet The ERP Technology Selection. In the proposed methodology, the ERP system was selected based on a Logical System Design, that included a view of the organization.