ERP System Selection process; How to select an ERP Software in India?

ERP System Selection process; How to select an ERP Software in India

?

Did your organization just "think" of buying an ERP Software? Well Congratulations!! You have taken a decision which executed correctly will simplify your life in a major way. However be prepared for the turbulence it will cause in your business for the next 1 year or so till the time you are Live on the ERP System. At the same time be also prepared for an implementation failure as a majority of ERP implementations are a failure one way or the other. How your experience is depends upon how did you go about your selection process. Selection of an ERP Software is not so simple as it would seem. You can ask so many people who selected the ERP System and went through a rigorous or less rigorous ERP evaluation process. Here are a few of the Guidelines for the ERP evaluation process.

Establish the need for an ERP Software: This is the first step where a substantial number of organizations falter in ERP evaluation. And if you do falter here its needless to say what follows is a comedy of errors. Here are some of the common reasons that which provoke people to buy an ERP system.

Everyone is buying it

IT will make me do my work in a jiffy

ERP stands for "Enterprise Resource Planning" and that sounds jazzy

You read this great article on the net which says I could cut down cycle times by over 50%

ERP is a great integration tool and my organization doesn't have integration

If I buy an ERP my organizational efficiencies will grow. (Ever wondered how many people can define this jargon called Organizational efficiencies)

ERP would mean increased profits

If you ask us, if you get all the information that you need (We hope that you know what you need) in a reasonable amount of time if not in seconds Don't invest your time and money in an ERP software. You should select and buy an ERP only if your organization's information needs are not being met in terms of Quality and Time.

Having the Right ERP Selection Team: Having taken the bold decision of going ahead with the ERP software, this is the second most important step for you. Almost all companies who want to select an ERP system make the IT Manager the Champion for the ERP evaluation. Unfortunately the IT Managers get fascinated more by the Technology than the Functionality. So if the Product is not on the latest buzz word in the Technology it doesn't appeal to them. Unfortunately the organization needs an ERP software which matches or comes close to their Functional requirements. Does caring about the Technology help? A right team for an ERP selection should be driven by a Champion in a company who can drive other users and help them arrive at a right decision. And the ERP evaluation Champion should continue to also drive the implementation if you want a success story. It is because he owns the decision the most. An IT Manager should just be a part of the ERP Selection team and not the Champion, The Team should have Functional Heads if possible(otherwise the second in command for sure).

When you buy an ERP Software you don't just buy a "Product" : Believe it or not.. An ERP "product" is yet to be invented. Perhaps it will never get invented either. When we say "Product" ..a Product is normally bought and used as-is. Unfortunately the ERP system can be bought as-is but is never used as-is. It always goes through some workarounds or customizations to suit the User's needs, verticals or specific company's requirements. What this means is that when you do ERP software selection, you don't just select the Product, you also select the Service provider who will implement and customize the Product for you. A more common term for the Service Provider is an "Implementation partner" and rightly so. When you buy an ERP System you get a Lifetime Partner with that. Its like an Indian Marriage. The evaluation of the ERP Implementation Partner is perhaps more important than the Product. So a Mediocre product with an Excellent ERP Implementation Partner may prove to be a better option than an Excellent Product with a Mediocre partner.

What to look for in a ERP Software: You should try and look at an ERP Product which is close to your business or which is flexible enough to be close to your business. Please remember that just because a Vendor is showing you a Product which is very similar to your business you don't have to jump into buying it. Please do make sure to find out how many people are using that ERP Software. A Product which is close to your business but with lesser Clients is a riskier proposition than the Product which is not that close to your business but has more Clients. ERP selection is a long term decision. You have to ensure that the Product which you are buying will stay long term. And anyone will tell you that a ERP system with a Bigger User base will last longer. It is possible that a Product close to your Business may meet your Requirements 100% but if it won't stay long you are in for a major shock. Because if buying and implementing an ERP was difficult, the changeover to another ERP would be still more difficult. The Challenge lies in the situation where most Vendors claim that they are the best and it is virtually impossible for your team to evaluate a "vast" product like an ERP in a demo which lasts just about an hour or two. One intelligent way to look at a Product is what sort of Analytics it gives. Mostly ERP evaluation teams include Middle or lower Managers in respective functional areas. With die respect to them, their vision is limited and they only look at Operational level information for themselves. However what you need is the Top end analytics which can help run your organization. Another way to look at an ERP is how effective is the drill down from a top level information to an item. So lets say an ERP is a good buy if it allows you to "easily" drill down from a Total Sales figures to country wise, state wise, area wise, invoice wise or item wise.

How to evaluate ERP Implementation Partner: The selection rule for the Products also applies to the ERP Implementation Partner. Look for experience of the Partner. Its similar to going to a surgeon. Whom would you prefer a Surgeon who has more successful operations to his credit or to a Surgeon who has lesser number. ERP System is not all about Software. Its also or perhaps more to do with the management. An organization's Management experience spreading across diverse range of customers and verticals will always come in handy for you. Don't forget to look for long term stability. Another parameter for ERP evaluation is to look at the commitment of the ERP Implementation Partner to the ERP business. If ERP Software business for him is just about 10% of his overall business, it is not advisable to look at them. You should look at people who are experts and have ERP as their major line of Business.

Please remember that implementing an ERP is like a Marriage. They generally last a lifetime even if they are not perfect.

POST COMMENT

Empowering your brand awareness through social media Making A Difference With Social Media Benefits of Social media Missouri Death Of The Social Media Guru Priest embraced Islam, (3) ex- minister of the United Methodist Church -iv Terrorism-phobia: Not Islam-o-phobia - A Muslim is guilty of Terrorism, until Proved Innocent! Archangel Metatron's God-Name of Yehwah (Jehovah), and how Religion was Formed to Control the Masses The Five Basic Principles Of Selection Of Coach Outlet Parameters For Selection Of A Good Web Design Company Watch Social TV……………….with buzzing on social media Social Media...a simple step to be successful!! Mainstreaming Your Job Search With Your Social Media Resume Faith Through Media