Selecting an ERP Solution

Whether you call them RFIs, RFPs, RFQs* or some other acronym, and whether you are a vendor or a customer, those three letters conjure up the same impression in many minds – pages and pages of detailed questions about a software product’s functionality, which takes weeks to create, days to respond, and weeks again to review.

Frankly, no one likes these documents, but businesses evaluating ERP software keep producing them, and vendors keep responding. Isn’t there a better, more efficient, ‘leaner’ way? According to one view:

“Regardless of how many consultants a client uses to select software, many would have been far better selecting out of a hat.”

The people who see value in ERP selection documents are the consultants whose job it is to create those documents. I know of cases where the client didn’t really understand the reason and the purpose of several questions. I have also been on a project where literally hundreds of selection questions were used, but once the implementation started those questions – and the answers – were effectively forgotten.

The now undeniable truth is that the selection of software plays little part in the final success or failure of an ERP project. What makes the difference during selection is addressing the real questions.

  • Has the organization identified the major business challenges that they want the ERP system to address, as well as the key business drivers the ERP system must support?
  • Are the business processes which operate in the business clearly understood and defined, and how should the ERP software assist or improve those processes?
  • Have executives clearly communicated the reason for, and objectives of, the ERP project to the rest of the enterprise, and more importantly, have they taken the time to get buy-in from the staff?

If those questions can be answered, here is an alternative process for selecting an ERP system:

  1. Check with other organizations, or industry groups, what ERP software deployment they know of, and their experiences around it.
  2. Do some of your own research. These days a bit of time using a search engine, and looking for some relevant blogs can give you a reasonable idea of issues in the ERP world.
  3. How do the vendors you have now identified articulate the direction and focus of future functionality in their product roadmaps, and is that consistent with your organization’s goals and plans?
  4. How are the vendors represented in your area? Do they have a local presence for training and support? What is the quality and quantity of skilled resources the vendor or reseller have available in your area?
  5. From the list you have now created, invite the vendors or their resellers to present to you. Provide them with some key requirements you need in an ERP and ask them to do a live demonstration or proof of concept using their software. Do they show an understanding of your business and its key issues? Can they show proven functionality in areas that concern you specifically? Lastly, what will it all cost?

The result of this process will be a few vendors with proven understanding and experience, who can then be engaged in more detailed negotiations. You might also ask these vendors to summarize in writing how their proposals address your key requirements. The vendors who understand the business issues should not only do a good summary but may also give you additional ideas you hadn’t thought of.

The key point is – don’t sweat the small stuff; avoid getting into too much detail on small issues of functionality. Focus on the important issues of the business and how the ERP software will allow you to improve them. No ERP system will address every single requirement perfectly, so make sure the ‘must have’ requirements are met.

If you’ve had experience selecting an ERP solution, drop us a comment here.

* RF = Request For. I = Information. P = Proposal. Q = Quote

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This entry was posted in Business Software, Business Strategy and tagged , , by Simon Griffiths. Bookmark the permalink.

About Simon Griffiths

My role at SYSPRO is Product and Industry Marketing Consultant, working in their Corporate Services division. I joined the company in 2007 after having interrupted a previous spell with SYSPRO to sell other ERP software. After completing a Masters degree in Climatology at University of the Witwatersrand in Johannesburg, my first job involved working on a mini-computer where I was taught programming by an ex-NASA engineer. In 1995 I spent some time in Silicon Valley where I got my first experience in high-tech marketing and soon after that entered the field of Enterprise Resource Planning (ERP). With over 20 years in enterprise IT, I have worked in programming, database management, project management, consulting, marketing and sales.

One thought on “Selecting an ERP Solution

  1. Pingback: Selecting an ERP solution « The Manticore blog

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