By studying, evaluating, and documenting these five key criteria, our clients make the educated decisions that are best for their company.
Benefit from ERP Selection Criteria – Evaluate Five Criteria
- Function fit
- Cost of ownership
Once the vendors have been identified, the team should go about a process of evaluating these criteria. Here is a definition of each criterion:
Company size (annual revenues and number of employees) becomes very important in your evaluation. Who will make the best partner? Who knows my industry the best and has the most references of companies like mine? Are they committed to serving my industry? Who will be able to keep my company abreast of technology changes for the next 20 years? Who will make the best vendor partner?
We find that most companies have developed a technology strategy favored by top management and IT. You will also find that ERP vendors have their own technology strategy. Even though most vendors profess they are open systems, in truth, each vendor has their technology “sweet spot.” Understand the technology platform and architecture for each vendor and measure it against your strategy.
Even though there are dozens of vendors that have a good function fit, you will find there are only about three or four vendors that are the best fit for your business. The key in your evaluation is to quickly find those vendors that best address business best practices for your industry.
ERP vendors have a number of ways to support their client. The larger firms have significant support ecosystems to support their market. Buyers should evaluate all of their support systems including the following:
- Consulting organization
- Implementation methodology
- ERP implementation methodology
- Maintenance and phone support
- User groups
- Partner network
Cost of Ownership
Learn from the customers of the vendors about their cost of ownership. We find that at the “end of the day,” most software vendors all get to the same price for software. A number of other factors differentiate vendors with cost of ownership. Annual support fees vary, implementation rates and fees vary, and ongoing need for support varies from vendor to vendor. Look to understand and confirm the total cost of ownership over a five year period.
Ultra guides its clients in the development of a decision criteria table that documents all the facts gathered in the evaluation phase organized by the above criterion.
Expert ERP Selection Criteria Assessment
Today’s modern ERP system provides manufacturers the tools necessary to improve business performance. Robust business intelligence, dashboard reporting, mobile access, real-time data access, integrated inventory control, quality, MRP, and other features can help companies work smarter, make informed decisions, and improve business processes.
When carefully selected, an ERP system helps companies succeed and prosper in changing environments, setting them apart from competitors.
Learn More about ERP Selection Criteria
Download a free white paper for best practices in ERP vendor selection – from developing a list of vendors for consideration, to identifying the leading vendors in the vertical industry, to conducting due diligence to make sure those solutions on the short list will deliver value to the organization.
With tactics shared in this free resource, you will quickly establish a list of vendors to be considered, and achieve an effective ERP selection project.