Factors to Consider When Choosing an ERP Software

There are so many ERP options that exist today such that selecting a package that works for one’s business can be a hard task. A lot of buyers normally pick a system and then adjust the business operations to match that of then software. 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. The main purpose of an ERP is to improve business process and make it better thus one needs to be careful on the ERP system they choose

The ERP is first a business initiative therefore the buyer needs to define the existing business processes, challenges and strengths that the business has. This analysis should also factor in the future business process and what things have to be met to get there. This data will then guide the person on the ERP software that they need in order to achieve their business goals.

Although the purchase of an ERP software is a business initiative the buyer still needs to know how the system will be made part of the existing infrastructure.

The cost of ownership needs to be included in the selection process. Many vendors have a habit of downplaying other costs that will come about after buying their ERP software. This calls upon the buyer to conduct proper research on the ERP software before buying it so that they know all then ins and outs of the software thus they can ask the vendor information on these future costs before they buy the ERP software The person needs to uncover these hidden costs that come with the ERP such as maintenance costs, software maintenance, back-filling on the project team and hardware upgrades.

Most vendors downplay the time required to implement the project thus the buyer needs to come up with their own implementation plan. There are various factors that need to be included such as issues to do with software installations and other issues like proper functioning, testing and acceptance by 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 sticking to the points discussed above the buyer can make a logical decision on which ERP software is good for their business needs and will help them have a competitive advantage.

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