How To Evaluate ERP Software For Your Business

PostedOn: 2016-07-04 12:15:53

There are many Enterprise Resource Planning tools available in the market nowadays which promises to full fill all your needs & requirements as per your Business processes, Evaluating & Selecting right ERP solutions is one of the key aspects during ERP planning stage. 

We have personally seen many ERP project failures due to inappropriate ERP tool selection, An ERP failure can ruins your investment and time. A research states that

  •          Over 50 percent of projects experienced cost overruns
  •          Over 60 percent experienced schedule overruns
  •          Fully 60 percent of respondents received under half of the expected benefit from their ERP implementation 

Source

Evaluating proper ERP software is a key for success. Many ERP implementations fail due to unfortunate evaluation process. Following are the key points one should remember while Evaluating ERP software

Define Goals

We have seen many clients who don’t define proper goals before implementing ERP solutions which is the primary reason for failures. Define your goals properly The first question we ask our clients is “Do you really need an ERP solution” or “Why you want to implement ERP software, and what you would like to achieve after implementation”

Many businesses implement ERP software because their competitors are using it Business should understand the problems competitors are facing while implementing ERP software.

How ERP will Benefits your Business

ERP solutions are implemented for better change management with more advantages and growth in your business. Many business owners ignore this point on how they will be benefited by selecting particular software.

We have seen employees who complaints about the ERP software after the implementation stating “Excel files were better previously compare to the ERP software” Therefore our next point is

Keep Employees and end user Involve:

“ERP implementations are not successful until users start using it” This is one of the key taglines which we provide to every client. ERP success is not a vendor or Project manager job – It is successful when end users are involved in defining the perfect process.

Business Requirement Document

Many organizations ignore Business Requirement Analysis and Functional Requirement Document creation as they feel it involves a pre-implementation cost. Although perfect BRD or FRD can reduces the cost of future. Involve experience team for BRD creation who can map every area of your business with workflow, forms, hierarchy and other departments.

“BRD or FRD is a handy document that allows vendor to provide customization, Cost and timelines estimations and can be use for any ERP software selection”

Choosing Correct Software

Once you have BRD ready you can now start selecting the vendors for right quote and timelines towards the project. Go in detail communication with vendors you are choosing for Implementation. Check their history and success rate of ERP. Ask for future customization points if require

“Many business select vendors by only checking their website or Brand name, Business should ask Open ended question rather close ended questions”