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  • ERP System Selection

     

    Choosing an ERP System may seem like an overwhelming task for those who have never gone through the ERP System Selection process.  While most organizations can usually find a few staff members who have used an ERP System in a previous life, or maybe have even been involved with an ERP System Selection, there are a number of reasons you will want to employ a third party to manage this process.  Before we get to these reasons, let us start with answering some basic questions and talking through some factors to consider when choosing a new ERP System.

     

    What is an ERP System?

    An Enterprise Resource Planning (ERP) System is an integrated suite of software applications designed to automate processes and manage business functions.  These business functions often include finance, human resources, sales, procurement, and manufacturing.

     

    What are some examples of popular ERP Systems on the market?

    Some popular ERP Systems include Oracle NetSuite, Microsoft Dynamics 365, IQMS EnterpriseIQ, Epicor ERP, Workday ERP, SAP Business One, VAI, Sage Business Cloud, Infor, and Oracle SCM.  This list is not exhaustive and each year new ERP solutions emerge that you may want to consider as potential candidates.

     

     How do I choose an ERP System?

    The short answer is you should invest time in an ERP System Selection.  Different ERP systems are designed for different industries, company sizes, and business complexities.  Many have different modules designed for specific business functions and you should understand which modules you will need.  Some systems are cloud-based, and some are designed to manage hardware on-premise.

    Another option is to look at a best of breed approach that might combine multiple software solutions, as opposed to choosing a single ERP.  Of course, vendor pricing and the implementation approach of the vendor also weigh-in to your decision. Going through a deliberate ERP System Selection process will help you sort through what you really need in an ERP system and which solution best meets your needs.

     

    What are the factors to consider when choosing an ERP Solution?

    Although each situation and organization are unique, here is  a list of considerations that are routinely discussed when we are doing an ERP System Selection.

     

     

     

     

     

     

     

     

     

     

     

     

    What are the challenges in the ERP System Selection process?

    Have you heard the story about the CEO who saw a booth at a conference, got excited, let the Vendor take over the process, and two years later the organization is stalled in the middle of an implementation of a system they should have never chosen in the first place?  Unfortunately, this happens all the time, and illustrates a few of the challenges organizations face in the ERP System Selection process.

     

     

     

     

     

     

     

     

     

    Why should you employ a 3rd Party ERP Consultant?

    We strongly advise you to obtain assistance instead of attempting to manage the ERP System Selection process yourself.  Here are the top five reasons to employ a 3rd Party ERP System Selection Consultant:

     

    #1 Acquire expertise you do not have.  By hiring an ERP System Selection Consultant, you can bridge the internal gaps in knowledge, skill, and capacity.

    #2 Leverage selection accelerators.  A third-party consultant has a structured methodology/process, tools, and templates and you will not need to re-invent the wheel.

    #3 Eliminate internal bias. MSS Business Transformation Advisory is not aligned with any specific solution or vendor.  We are apolitical and have your best interest at heart.

    #4 It is a huge decision. You want to get it right.  The total cost of ownership of an ERP System is easily into the 7 figures. Due to this cost, it is a decision you will be living with for the next 10 years or more.  The ERP System Selection process is not something on which most organizations can afford to skimp.  Hiring MSSBTA is like buying a cheap insurance policy.

    #5. Avoid the never-ending sales calls.  This might sound funny, but are you prepared for the onslaught of sales representatives knocking down the door?

     

    How long should you plan for an ERP System Selection?

    For most organizations, you can expect to invest at least 60-90 days in the ERP System Selection process.  This includes developing requirements, issuing an RFP, shortlisting vendors, planning logistics to schedule demos, negotiations, and conducting the legal activities.  Some variables that may impact this timeline include:

     

    Need help with your ERP System Selection?

    We would love to discuss your business.  Please send us a quick note and we will get back to you shortly!   Advisory@mssbta.com