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ERP Software Selection Criteria | Process | Steps | Consultant

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ERP software Selection Criteria Process Steps Consultant

ERP Software Selection Criteria | Process | Steps | Consultant

In the ever-evolving landscape of business management, an effective Enterprise Resource Planning (ERP) system can be a game-changer. However, navigating the vast array of ERP software options available can be a daunting task. Do you find yourself wondering how the ERP software selection process actually works? In this blog post, we will guide you through each step of the ERP software selection procedure, helping you make an informed decision that aligns perfectly with your organization’s needs.

What is an ERP solution?

Enterprise resource planning is a business software system that allows you to integrate all your business planning, Manufacturing, Sales, Warehouse, Accounting and other facets of your business departments including the production and operation parts in one single system.

Still, there are many ERP packages available in the market which doesn’t support customization; as they acquire ERP systems with best practices. Customization of ERP software can be a little complicated and expensive if implementing proprietary software. Therefore implementing ERP software and selecting the best software which suits your business is another critical and important part.

An ERP software implementation consists of proper planning on a variety of variables such as Modules to be installed, departments to be covered, users, roles hierarchy and most importantly the integration part with an existing system.

ERP software selection is actually based on the processes of your organization or departments. Therefore before selecting any ERP software the functionality and technicalities should be very well defined.

For Example:

“Manufacturing ERP software which is designed for Process Manufacturing may not suit discrete manufacturing organization”.

There are many ERP software available which provide you with generic reports, and generic modules therefore customization to these modules and reports becomes necessary to meet your business requirements. Although there are third-party tools available this can be integrated to meet your requirements.

For Example:

Many ERP software don’t provide you with workflow management software, Business Intelligence, or full-fledged easy Accounting, therefore to meet the needs and requirements the Main ERP software is integrated to create a complete system for the business.

Read our Article on  – Why ERP systems are important for businesses

Further for ERP selection businesses also have another choice such as a cloud-based model, SAAS (Software as a service) or web-based ERP software which doesn’t require the installation of software on every machine and can be accessed via a web browser.

We have even covered that there are Open-source ERP software which companies nowadays consider while selecting ERP solutions for their businesses as they can be easily customized and integrate well with 3rd party software.

Read our Article on  – Quick tips for successful ERP implementations

ERP software is considered one of the most important business tools that integrates all your departments into one single system. Although there are many options available for selecting an ERP software and if the tool is implemented or selected correctly, It can provide you with a good Return on your investment.

Read our Article on  – Web Based ERP software

How big is your organization

The size of a company is important. Whether you’re a Fortune 500 company or a startup company about to leave your parent’s basement? These solutions are scalable, so you can add more users, departments, and employees as your company grows. Alternatively, if you do not expect your company to grow beyond a small or medium size, you can invest in a programme that meets this requirement.

How to Choose an ERP Software Selection in 5 Easy Steps

We had the chance to work with dozens of businesses, including my own, to help translate organisational needs into ERP success when it comes to ERP systems. Additionally, we’ve got it down to a science, which is good news. Follow these 5 doable steps to make sure you choose the ERP system that will work best for your company.

Step 1: Do Your “Discovery” Research With Care

What are the functional goals your company needs to achieve with an ERP system is the first and most important question you need to answer. Do you require a system that calculates gains and losses on currency exchanges? Does it make order processing better? Optimises different accounting processes?

Make a list of all the functional outcomes that your ERP system might be able to achieve. This collaborative process should involve all teams and/or departments that use the system. Take the time to conduct a thorough analysis with the appropriate people. The more cross-departmental functions you require, the longer your list will be.

Converse with various teams in interviews. Examine the accounting procedures in place. Recognize the application of reporting package usage. Analyze the data flow underlying the active processes. So forth. It’s important to note that the Discovery step is the most important step in your selection of an ERP system.

I cannot overstate how crucial it is to include the appropriate stakeholders during this phase in order to fully understand your needs for financial systems. Remember that the more thoroughly you complete this step, the better your ERP system will perform once it is put into place.

Step 2: Make a list of your company’s requirements.

It’s time to formalize everything into a business requirements document once you’ve completed your research and gathered the necessary data from various business areas. This list should include all tasks that need to be completed that were identified as non-functional in Step 1 as well as all necessary tasks.

Have you examined vendors’ financial standing through research? Which suppliers are known for providing quality service? It is a good idea to formalize and document these considerations because even though they are unrelated to the features or functions of an ERP, they are still important in your selection process.

In order to rank and prioritize each item, review your document with important stakeholders next. When comparing two packages that appear to have similar features but differ on a single, “high-ranked” function, this evaluation will be helpful in determining which package performs better.

Step 3: Choose what you want first

Create a list of potential vendors after outlining your internal requirements. This process will necessitate a considerable bit of exploratory research, where you can schedule calls (or meetings in person, if proximity permits) over the course of a few weeks to share information and address your top vendor needs.

Eliminate certain vendors that don’t quite fit the bill while staying true to your list of ERP objectives and requirements. At the conclusion of Step 3, you want to select no more than two or three vendors to work with further.

Step 4: Demo and a Deep Dive

You must dive in-depth with a product demo after you’ve reduced the number of vendors you’re considering. Expect these exhibits to run for two to three hours. The vendor will typically work with your business to determine which high-priority business functions to cover before the demo.

To give users a genuine sense of how the software can enhance your daily operations, a well-run demo should be as tailored to your business (and your industry) as possible. Meet with your team after the demo to conduct additional analysis.

Are there difficulties with the software? Is it successful in addressing your top priorities? Are there any features that you’d like to look at again? Most of the time, I’d strongly advise scheduling a second demo to address any lingering queries or worries. The second demo can really tip the scales when there are only two vendors left.

Please make sure to check references during this stage. The vendor will probably give you a list of references, but it’s a good idea to conduct your own research as well. This can be as easy as asking peers on LinkedIn or speaking with coworkers.

Step 5: Finalize the Agreement with a Choice

Congratulations on completing this stage; the challenging part is now behind you. You ought to have done all the research required to reach your decision. Here is what can be helpful if there is any remaining doubt: Create a scorecard with line-item business requirements for your team (including features, functions and non-functional requirements discussed in Step 2). Have each line item rated by all important stakeholders, then compile your findings to determine the winner.

Read our Article on  – Web Based ERP software

Final Thoughts

Choosing the ideal ERP software is pivotal in modern business management. ERP systems unify various functions into one platform, but the abundance of options can be overwhelming. This guide has expertly navigated ERP software selection, underscoring critical aspects like customization, implementation, and scalability.

Cloud-based and open-source solutions provide the flexibility needed for success. Our five-step approach ensures well-informed decisions in the realm of ERP software selection, from meticulous research to vendor selection. Trust in GlobalTeckz for a customizable ERP software solution, backed by the satisfaction of over 150 global clients.

In a perpetually evolving ERP landscape, this guide empowers you to make a confident choice, ultimately enhancing organizational efficiency.

Looking for an ERP selection consultant for your Business?

We at GlobalTeckz offer you one of the leading and best ERP software that can be customized as per your requirement and it’s easily integrated with all your business departments across various regions. For more information you can contact us – sales@globalteckz.com

We ensure the software you are selecting for your business is up to the mark and handles all your mission-critical processes easily. We have implemented ERP software for more than 150+* clients across the globe.

*Data as of 2023 – January

 

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