ERP software selection is vital stage of ERP implementation as an organization decides to replace the old working system. The first thing while deciding the new software for your organization is to understand the IT budget and the requirements of the organizations. Inappropriately selected software can not only cause failures in later stages but it will cause a huge financial loss to the organization. It is ideal to spend at least more than three to five months for the procedure of selection of ERP for your organization.
Define the requirements: First define the needs of the organization which includes the basic requirements of the departments such as order manufacturing, distribution etc. Shortlist the crucial procedure which should be present in the new system - for example: a financial company requires an ERP which provides the best financial modules and the company working in Healthcare may need other modules. Study the features provided by various vendors in the field in which the organization is working. Compare the features and see what features meet your requirement.
Selection for scalability: The software should be selected for scalability as there are many vendors that provide solution for not more than two users and some software products can give solution for thousands of transactions in one minute. The selection should be based on the number of employees in the company and number of transaction which may take place at one time. The software which provides support for more number of users may not suit the budget of the organizations but there are many vendors which can be analyzed to get cheap option.
Selection for technology: The software should be selected for technology, front end and back end - N-tier architecture or web based architecture etc. If a company has branches across the world - it may need web based system and the company that has a strong manufacturing unit may require database such as Oracle to handle the heavy everyday transactions. After selecting the front end features and the backend - the integration of features of backend and frontend should be analyzed. Look for the reports and the technology used in designing the reports as it will be used to get the final reports required by the company.
Market presence of the vendor: Although the development of ERP has created a lot of competitions and many new vendors of ERPs are providing the best solution but the market presence of the vendor ensures reliability and future customer service. There are many small vendors which can provide better customer service and customizations as required by the client as compared to large renowned vendors - therefore the decisions should be based accordingly.
Send request for proposal: The organization should design a request for proposal and send it to the vendors'. After getting the proposals - rank the vendor response according to their features.
Request for demos: Send request to get demonstration of the product, ensure customization features and meet the employees of the vendor company to ensure the capabilities of the vendor.
Final stage: In the final stages the organization can visit the vendor's site and bargain for the cost before taking a decision.