ERP - Selection Criteria An ERP is certainly an information backbone and would have its reach to all functional areas of business and value chain. Organizations go for ERP systems owing to a variety of reasons. At the most fundamental level, the question would be whether the current system supports or constrains execution of the business strategies of the enterprise. The long term business strategy of an enterprise would form the cornerstone for the selection of an apt ERP system. The ERP provider shouldn’t be like any other software solutions provider; the provider should be part of the vision and should definitely guide the path to attain the visions of the enterprise.
Eleven Criteria A Future Proof Decision History is the best predictor of the future. Evidence of dedication to providing strategic, enterprise wide, mission-critical applications to support the business models and size of the organization today and tomorrow is extremely important. To that end, the best solution would be to look for a reputation for agility in accommodating new market trends and needs. For instance, a
manufacturing software system’s history of evolving to changing business and technology needs is not accidental. From the beginning this dexterity would have to have been designed into the system. How could this be achieved, one solution I would propose is making ample provisions to accommodate changes and make the solution adaptable and compatible. Clearly this aspect points to its ability to support your vision, both known and unknown.
Rock Solid Solutions
Somewhere between concept and delivery, many good software ideas lose focus on the most important principle of providing value as perceived by the customer. Are technologies evaluated and employed based on their relevance to the needs of enterprises? Leaders in the ERP industry always emphasize on providing critical functionality as required by the customers. Rock solid solutions generate rock solid results. With the use of functionally superior ERP measurable improvements could be witnessed in diverse sectors, say:
90% Reduction of order-to-ship time
40-50% reduction of lead times
50% reduction of labor and overheads
Over $400 000 of total inventory savings.
Replacement Know-How This is one of the most vital decisions you would make for the organization and you would certainly want to select a vendor who has been down this path for more than a few times, a proven, solutions provider for that matter. It’s obviously a better choice to opt for a vendor without divided, unfocused interests and business units. When a vendor’s business is 80 – 90% system replacements that means that the vendor has learnt what it takes to a smooth and flawless transition. They would also possess proven expertise in reviewing and replacing ineffective processes. In the final analysis, you would have to hear testimonials from users of such vendors.
Elimination of Implementation Guess Work To reinforce the right choice, the one you can get implemented on time and will get you the return on investment anticipated, there must be a comprehensive methodology. Thinking from a high level the following elements are essential:
Discovery: Based on information gathered in a discovery session a preliminary object plan is prepared and also the scope, schedule and resources are gathered.
Strategy: A project manager helps you determine the impact of changes on various areas in the organization and suggests as to how to manage those changes.
Business Analysis: Project plan is finalized, goals and objectives are revisited, roles and responsibilities are defined.
Education: Thorough training would have to be provided to enable staff to accommodate the inevitable changes.
Application Configuration: This phase provides for reviewing the deployment strategy. “User defined fields and workflows can be tailored to the specification and tested.
Readiness Assessment: A final integration testing and end user testing is performed too and the overall readiness of the system is assessed
Deployment: With close monitoring done by vendor’s consultants the application is rolled out to the entire organization.
Manufacturing and Distribution Mastery The number one weakest link in IT implementations has been reported to be consulting expertise. So the enterprise should make sure that the vendor’s staffs of design professionals, systems analysts, technical and manufacturing and distribution consultants have thorough understanding of manufacturing and distribution policies followed by the enterprise Look closer to verify that the software provider maintains a highly skilled work force. On the front line, the team would consist of a consulting Project Lead, a financial specialist and a manufacturing distribution specialist. While the Consulting Project Lead would ensure a smooth and flawless transition process, the financial specialist would ensure that your financial functions work towards your investment needs. The role of the manufacturing and distribution specialist is to make sure that the system in place meets the relevant requirements.
Stacking the technology odds in your favor &nb