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What Should I Look for in an ERP Solution?

To execute a successful ERP implementation, it is important to choose the solution that is appropriate for the structure, technology and systems, and the goals of your organization, and then to move forward with the deployment phase. In the process for the selection of an ERP solution, a systematic path needs to be followed that will minimize time and costs involved, maximize operational productivity and enable effective use following deployment, leading to a solution that will satisfy the requirements.

The methodoloy leading to a full-featured solution involves a process that begins with the specification of organizational objectives, and leads to the definition of the parameters for the solution.

In an environment of rapid change, many organizations have a difficult time controlling the full range of operations that are realized, which leads to lengthy cycles for strategic decision making. Prior to making a commitment on an enterprise-wide solution, business processes and organizational requirements should be clearly spelled out. Certain organizations seek new solutions due to the deficiency and disorder they observe in their work flows, the growth they experience in personnel and operations, while others are unhappy with the overall performance of the organization.

The expectations from the new system should be described, including activities that currently cannot be carried out but will become possible with the deployment of the new system, operational tasks that will become less costly, take a shorter time and increase in quality, as well as require less labor. It should also be determined whether the solution will be an internal one or a product from an outside source. The ability to transfer data from the existing legacy systems to the new system should be made certain. Also to be determined are the time schedule for deployment of the new system, ramp up and learning curve for the personnel, and the effect on the organization's activities.

The next step involves vendor evaluation. The stability of the vendor, its support capabilities, as well as opportunities for mutually beneficial and strategic partnerships, are some of the important factors to consider for a successful implementation. The vendor's vision for itself, its business references, its knowledge and experience within the industries for which it produces solutions, and the geographical coverage it offers are significant points to consider. The vendors with the most suitable solutions will then be determined. Considering that ERP implementations are long term undertakings, the success rate and capacity of the vendor in providing continuous and uninterrupted support and service, and the vendor's support tools and methodologies should all be evaluated.

During the final stage, the solution should be evaluated with a focus on the future growth of the organization and its increasing work load, and ability to add new modules on demand, as well as its flexibility in response to changing technologies and business conditions should be taken into consideration.