ERP Systems selection process...1

Selecting a right ERP system suitable for your organization can be time-consuming and risky — but with the right strategy and tools, you can turn your selection positively. Here are some steps to help you identify the best solution for your company.

1. Choose an ERP selection project manager
The first step for selecting an ERP system is to select a project manager from your organization to manage the selection process. In addition to coordinating the internal needs assessment and vendor evaluation process, the selected project manager will serve as the liaison with vendors.

The project manager will also create a selection team representing every area of the company (finance, sales, manufacturing, human resources, etc.).

If your company decides to hire an ERP consulting firm to manage the selection project, the role of the in-house project manager will shift toward overseeing the firm's work, co-ordinating interviews and meetings with key users and managers, and ensuring that each department's needs are adequately addressed.

2. Assess users' needs
When replacing an old system, it is important to identify features and functions that are desired in the prospective new ERP system that will increase productivity and provide quick and meaningful access to data. It can be very difficult and time consuming to identify desired new  functionality without help from a tool that includes a database of possible features.

3. Develop a customized RFP for your organization

Based on the specific features and priorities assigned by the selection team, you will be able to create a Request for Proposal (RFP).
  

4. Distribute your RFP to the software vendors

This customized RFP can be emailed to the vendors of your choice (you can even include your current vendor for comparative purposes, if you wish).

5. Rank vendor responses
Once all vendor responses have been received, the selection project manager can run numerous analytical reports that will rank the vendors and provide standardized cost comparisons.

6. Plan vendor demos

After vendors are narrowed down to a short list based on their responses to the RFP, you can schedule an on-site demo with the top scoring two or three vendors. Unless you have some input into the vendor demo format, you could become dazzled and confused by the vendors' demonstrations.

7. Schedule site visits

Aside from demos, it is a good idea to visit the sites of non-competitive companies who are using the prospective ERP system. Site visits allow you to see systems implemented in a real world environment with live data and actual users vs. the vendor's marketing staff. Members of your selection team will have the opportunity to speak frankly with their counterparts and gain insights into the benefits and drawbacks of each system.

8. Ask The Competitors

Ask all of the competitors (Vendors applied) about each other, this method will lead to a pool of information been collected and of course some of this information may be fake but others may be accurate and lead to know a lot about each competitor a lot of negative data that might not been known before from the vendor himself.

9. Consider other factors

Your final decision on which ERP company to select will be based on many factors besides functionality. Financial stability, reputation within the industry, and ability to keep up with new technology are among other considerations. Many of these questions can be answered in the RFP and then corroborated by your own research using business publications, trade journals, seminars and communication with others in your industry.