Before implementing or choosing an ERP, the buyer should evaluate its own business and do an extensive pre-implementation planning to analyze the areas where the company is not using the latest technologies or is suffering losses due to old obsolete methodologies. The company should first solve its one internal problem which includes business related problems, functional errors, technical and political problems, and try to find out the error rate of productivity to determine inaccuracies which have been affecting the performance of the company.
Some of the steps which the company should do before selecting ERP or starting implementation
Identify the outdated methods of working and change it: The business procedures which have been unproductive and are costing more - should be discontinued. Taking major decisions are very tough but during implementation the system will get complex and more expensive - if it is not resolved earlier.
Accept that every exchange in current system may need heavy expenses: Seeking solution for every problem from the software is troublesome and expecting everything to happen at a low cost can be unrealistic. Until a company is prepared with good amount of revenue and time for investing in automated solutions, it should not go for it. Software costs three to four times more than the initial license charges.
Analyze the benefits of automating work procedures: Identify the key areas which may be affected by the new procedures. The speeded up production cycles, information exchange and the accuracy in data are some of the major benefits.
Assess the features of software present in the market to find out the best solution for your organization: There are a number of highly competitive software solutions which are available in the market and the companies should try to assess the features of many vendors to find out the best suitable vendor. A discussion on price, negotiation terms and ROI should be done to get to a conclusion.
Form a team of consultants and technical staffs to analyze the requirements of the companies: Identify key people who will be devoted to implementation process as it will prevent delays and reduces financial losses in the later stage. These are key members of the team who will be completely devoted to the process.
Some of the vital business procedures should be known: The buyer should make a list of procedures which are key processes- essential for the company. The buyer should try to ensure that the vendor provides solution which includes those key procedures and the customization can be done to suit the requirements.
Try to work as per industry standards to enable easy automation: For automated system it is necessary to work as per rules and regulations because the software by itself cannot make changes until it is directed. All the procedure in a system passes through the same regulations and therefore to enable easy automation it is necessary to follow certain business rules and standards.
Select vendor as per the future needs: Depending upon the future needs of the company the selection for vendor should be done.