Tips for selecting a GOOD ERP system from the Market
To help organizations increase the odds of a successful ERP deployment, with the help of dozens of ERP and change management experts, we came up with an ERP selection and implementation tip sheet. Here are nine tips on how to choose an ERP software solution and successfully deploy it.
1. Get upper management support:
Companies that tend to struggle the most with ERP are the ones that lack upper management level involvement. Resources at the lower level tend to not be educated and engaged with the implementation project without senior-level involvement, but they need to be aware of the issues that are causing delays to the project."
2. Make a clear and extensive list of requirements before you start looking at vendors.
Begin by carefully defining the scope of your project, focus on specific business processes and system requirements. The more specific you can be upfront, the more detailed your vendors can be in their proposals.
"Too often, people select an ERP system based on factors such as price, current technology buzz, or the system that is the flashiest," adds Fresca. "But without a good fit, companies are left with expensive customization and bolted together solutions," she notes. The solution: "Find an industry-specific ERP system, with tools and features designed to solve your business requirements. The ROI and long-term benefits of a good fitting system are extensive."
3. Don't forget mobile users
As mobility and BYOD increase across industries, accessing ERP systems from desktops only is no longer an option. Choose an ERP solution that allows users to be productive on smartphones and tablets. Yet at the same time will ensure that sensitive information is secure.
4. Carefully evaluate your options before selecting your ERP system.
Poorly run and ill-defined evaluation projects can lead to poor implementations of requirement definitions and vague priorities can lead to the wrong vendor selection.
Also, do not forget about integration. An ERP solution that does not work with your existing legacy and/or critical office systems is not a solution but another expensive piece of unused or unusable software. Finally, find a partner that specializes in your industry. Better yet, find one that is dedicated to your industry. Those trying to tackle the entire ERP world can't offer the same expertise.
5. Get references.
First and foremost, when shopping for an ERP solution provider, ask the vendor for at least three references. Then "ask the customers what went right, what went wrong, and what they might have done differently. If a vendor can't provide at least three verifiable, happy customers, they may not have the experience you need."
Similarly, if you are a member of an industry association, ask colleagues for ERP recommendations.
6. Think before you customize.
Consider the amount of customization required to configure and deploy. Highly customized systems will generate higher costs, not only in the initial deployment but when upgrading from release to release an industry-specific ERP system
If a particular business function believes they have a case for customization, make sure they prove it. Remember, the cost of the customization is not only writing and testing the code for initial implementation but providing long-term support of the custom code and treating any customizations as exceptions every time you upgrade your software. Keep it simple and try not to allow customization into your ERP program.
7. Factor in change management.
Organizational change management is pivotal to the success of your project, an ERP-managed services and technology solutions provider. Typical ERP projects facilitate massive change in organizations that can include changing of day to day job descriptions or eliminating job descriptions in total. These changes impact the culture of your company and without careful control and communication plans and workshops, you can create an adverse reaction to ERP resulting in barriers to implementation and adoption.
8. Provide the necessary time and resources for training on the ERP system.
Learning a new way of operating will require a significant time commitment for everyone, so the project team must take proactive measures to reduce the burden on employees. Identify department-specific needs, allowing for sufficient time to develop and deliver training programs.
Furthermore, it's important to "recognize that the most effective training may not come from outside sources. Tech-savvy employees within departments can be given the opportunity for more in-depth instruction to become expert resources for their fellow employees. Having a readily available support contact within an operational group reduces the 'us vs. them' dynamic that can poison the implementation process.