Selection Of ERP Application... Questions to Ask...(6)

Part (6) – Selection Process


1. Create a “Selection Team,” and communicate why (Section 2) a new
accounting/resource planning application is being sought. Identify a “Key
Contact” who will gather information and communicate it among the team
members – most, if not all of who will serve as key decision makers.

2. Have the Key Contact become thoroughly knowledgeable about your
organization’s internal business needs. Create a budget (loose benchmarks
include: total software and implementation costs equate roughly to 0.5% of total
revenue; implementation, customizations, and training usually equate with 1 to
1.5 times software costs, depending on the size and type of organization, and the
scope of the implementation.)

3. Have the Key Contact become knowledgeable about potential software solutions
(applications) and their abilities to meet the needs identified in Section 3. (Do
this by reviewing web sites of both the software vendors and local resellers. Also
order information from local resellers – those with whom you will be working.)

4. Create a matrix that identifies how each application will solve the most critical
business needs.

5. Eliminate those applications that obviously won’t meet your needs. (Done by the
Selection Team or Key Contact.)

6. Invite representatives of the remaining applications (2-4) to present their solutions
to the Selection Team. (Provide as much detail as possible beforehand so they
can model transactions and business processes during their demonstrations. This
will offer a clearer picture and expedite decision-making.)

7. Demonstration: Evaluate potential solutions first- hand based on the criteria set out
in Sections 3, 4, and 5. Also evaluate the resellers you may be working with dayto-
day – ultimately they may be the distinguishing factor on determining success.
(see Attachment 1) Additionally, have them communicate their implementation
process –methodology. Therein you will find points of distinction from other
resellers. It will also provide an idea of how they intend to manage risk,
communicate, and achieve success. Finally, consider the questions asked. Are
they sincere and insightful, or is much of their time spent on selling themselves?


8. Not Recommended: evaluating software on your own. While this is tempting,
engaging in this activity may result in selecting the software most preferred by the
Key Contact, or the software that is most intuitive or familiar. These qualities do
not equate with the best solution for the organization. With accounting and
enterprise applications the total solution must remain the focus, and at this stage,
only the reseller can effectively communicate this to your organization. If they
cannot, then another firm must be considered.

9. Determine the top 1 or 2 providers. Invite them to submit a proposal with time
frames, cost estimates, and resources (people) they will devo te to the project.
(Don’t fall for a bait and switch – selling a highly qualified professional and
having them substituted with one that is less qualified. Know up- front who will
be working with your company.) Check the Reseller’s references in your
industry.

10. Have the Selection Team evaluate the proposals. If necessary, clarify, negotiate,
and modify. Make a decision involving all key decision makers. Identify a start
date.