Suitable Selection Criteria The first Step on
the Road to your
ERP Project Success
the Road
ERP Project
The offers from all potential software vendors have been received and analyzed in detail. The project committee has just finished the meeting in which the final decision on an ERP solution and a vendor was supposed to be made. Unfortunately, the management team could not come to an agreement and has again suspended the final decision for a few weeks…
The ERP Selection Dilemma: putting off the Decision - even though there is actually Time Pressure
This situation occurs again and again in many companies. To avoid serious delays, a solution and an implementation partner must be selected in good time. However, those responsible often lack a common frame of reference on the basis of which the decision should be made.
Postponing the decision then quickly becomes an attractive way out. This is despite the fact that everyone involved is aware that this strategy not only postpones the problem into the future, but also increases the time pressure for the upcoming implementation. After all, the deadline has already passed.
Time: Why it's your
worst Enemy
in an ERP Project
worst
in an
Unclear Selection Criteria cause Problems
If you do not define the selection criteria in advance, you will logically lack the basis for a well-founded decision. In this way, you unconsciously create space for subjective, personal or even emotional criteria. And so there is a risk that vendors can show off with their offers that would have no chance based on the really relevant criteria. You may then not realize that the vendor is engaging in overselling or you may be blinded by discounts.
Too much Focus on Technology and Functionality
In practice, many companies focus far too much on the aspects of technology and functionality in their decisions, even though they often recognize in the initial implementation phases that the competence of the consultants, the experience of the project management and an appropriate implementation methodology are just as important. Or even more important! In the medium to long term, criteria such as the scope of the solution, the product strategy, the size of the R&D budget, the financial strength of the vendor and growth are also relevant aspects.
Functionality of the ERP System: just one of the relevant Criteria
The functionality of your future ERP system is of course very important. After all, that’s what it’s all about! However, it is only one of the criteria that are relevant to your choice. You should know the other important criteria best yourself. However, aspects such as industry experience, the right references, the degree of continuity, the quality offered and the annual total cost of ownership should always be included on your checklist.
Selecting your ERP Vendor: Ideas for your Checklist
In addition to the technology and functionality of the ERP system, these criteria are also important:
The first Step towards Success: standardizing the ERP Selection Process
If you define a standard for your ERP selection before starting the selection process, this is the first step on the way to your project success. This will allow you to make your decision based solely on the relevant aspects. It is very likely that you will reach your goal faster. In this way, you get a better solution, carry out a more efficient implementation and achieve higher added value.