Whether businesses are implementing enterprise resource planning (ERP) systems for the first time or upgrading to new ones, finding the right software solution is key. The problem is that there are dozens, if not hundreds, of viable options out there, and each of them offers a slightly different set of benefits, drawbacks, and features. Read on to find a checklist of all the steps that decision-makers need to go through to find an ERP system that fits the unique needs of any business.
Step One: Defining Business Requirements
Before even reading through that first ERP software features list, business owners and stakeholders need to sit down to determine their specific requirements. Set up brainstorming sessions to determine what the pain points and bottlenecks are in the company’s existing processes and establish expectations for how ERP software will improve business performance in each of these areas. Taking the time to establish needs and expectations before investigating specific software solutions will help to keep everyone on track.
Step Two: Establish Vendor Selection Criteria
Part of the reason it’s important to start from the beginning by defining business requirements is that everyone needs to be on the same page when it comes to what to look for in an ERP vendor. Use the information collected in step one to visualize what features the ideal ERP system will offer and create a list of selection criteria. These selection criteria usually include:
Industry-specific functions
Scalability
Integrations
Flexibility
User-friendliness
Ongoing support
Determine how important each of these elements is before moving on to the next step.
Step Three: Create a Budget
So far, this article has focused on ideals. Now, it’s time to sit down and establish a budget. Be sure to consider hidden and ongoing costs because most ERP systems will need to be maintained, employees will require training, and there may be a need for additional resources such as on-site hardware for locally deployed systems. While the latter of these costs can be avoided by migrating to the cloud, there’s no getting around the need for employee training.
Step Four: Get to Work Evaluating Options
With both a set budget and selection criteria in place, it’s time to start investigating specific options. Make a list of all the vendors that can fulfill the selection criteria with the understanding that there will be many options. It’s best to narrow down the selection before contacting vendors to schedule demos.
Step Five: Schedule Vendor Demos
Most vendors will send out representatives to conduct in-house demos or offer online product demonstrations and free trials to interested customers. Take full advantage of them to clarify anything that didn’t quite make sense in the product literature and get a feel for how each system will work post-implementation. By the end of this stage, there should only be a handful of contenders left in the running.
Step Six: The Final Choice
Using all of the notes from previous steps and evaluations, try to determine how the top contenders measure up. In most cases, it’s clear which of them will be the best fit by now. If it isn’t, take the time to continue discussions until all of the company’s key decision-makers are on the same page about moving forward.
Feeling Overwhelmed?
The sheer number of options available can feel overwhelming, as can the process of carefully vetting each vendor. If that’s the case, it may be worth working with a software consultant who can explain options and provide some extra confidence that the business’s ERP system will be a good fit.
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