ERP Evaluation: 8 Questions to Expect

ERP Evaluation: 8 Questions ERP Salespeople Will Ask Your Team

Are you looking to drive change in your organization and spearhead a move to replace your system(s) with an ERP? You should know the risks that come with your ERP evaluation. ERP project failure rates run around 50% (1), so why flip a coin on your career and risk becoming a scapegoat for a poor choice of ERP software and software vendor?

What can you do to ensure your efforts are appreciated, and your company chooses the right ERP solution for its team’s unique requirements? What can you do to tilt the odds in your favor?

First, have a sound soup-to-nuts plan that describes your ERP evaluation process, from internal research and consensus building to the final purchase, installation, and support of your new ERP system.

• If you don’t have your ERP software evaluation plan started yet, you may want to review these two blogs:
• Outdated, clunky ERP? Start an ERP Evaluation with this simple plan.
• 8 Things to Include in your Formal ERP Evaluation plan

Second, manage the ERP vendor engagement process through preparation. Once your plan is in place and your formal ERP evaluation has started, your next move seems obvious; start contacting ERP providers. As a former ERP salesperson and sometimes software purchaser, I suggest you put down that handset or cell phone a little longer.

From my experience, these are a few things that can go awry once your team reaches out to potential ERP vendors.

More attention is focused on your company than you want or need. This can range from slightly annoying to awkward to unacceptable behavior. For instance:

• Being outnumbered on calls with vendors. This can be awkward, particularly if the vendor frequently withholds information until you’ve completed their process.
• Salesperson calls your executive team, immediate supervisor, or others in your company. This can occur at any point in the engagement process and is rarely an accident. Some salespeople, believing you are unlikely to support their position, will contact (or have teammates contact) others in your company to attempt to persuade them to their point of view.
• The worst that can happen is that the overly aggressive salesperson wins a point with one of your supervisors. What position does that put you in?
• Attempts to take over the sales process from its rightful owner, you. Ultimately, you and your team will make the final decision of which vendor to select. However, your team will probably follow the vendor’s plan if you don't prepare for the vendor engagement. That means the engagement becomes more of a quid pro quo, with the potential vendor supplying the information you need only after your team answers their questions.

Fortunately, as your team is more prepared for these tactics, you can reduce the unwanted influence and better control your ERP evaluation process.

Vendor Communication: A Team Approach

Outstanding vendor engagement is not an ‘us’ against ‘them’ battle. Preparing for your vendor engagement allows you to discover the information to help your vendor’s team align with your process. Naturally, the ERP vendor team will ask many questions, most of which are necessary to their understanding.

8 Questions ERP Salespeople Will Ask Your Team

1. When would you like to have your new ERP system in place? Since they know approximately how long it will take to implement the ERP solution, they will quickly work backward from your date and discuss with you when an ERP implementation will need to start. This is used by the ERP salespeople to induce a sense of urgency.
2. Why have you decided that this is the time to purchase a new ERP system? This is an attempt to determine the degree of interest in purchase. This will be asked to try to determine an estimated purchase date. ?
3. Do you have a budget for a new ERP system? A ‘no’ answer tells the potential vendor that you may be evaluating ERP systems for the following fiscal year, but ‘no’ is also the typical answer. A ‘yes’ will have the potential vendor’s sales team high-fiving after the meeting.
4. What is your budget for a new ERP system that satisfies your business requirements? When you answer this question (it will be asked multiple times), the potential ERP vendor will better understand how to price their solution. Potential ERP clients don’t usually answer this question early in the engagement.
5. Who in your company will sign an agreement to purchase a new ERP system? This tells the ERP seller with whom they may have to negotiate final pricing.
6. Would you describe your evaluation process for your ERP purchase? This information is critical for both your team and the ERP vendor team.
7. Who will be involved in the final purchase decision? This helps the vendor anticipate with whom they may negotiate the final purchase price.
8. What is your process for making the final decision? This helps the ERP vendor align with your ERP evaluation process.

In addition to these or related questions, your potential ERP vendor can expect to stay connected with you and your teammates through phone calls, email, or social media outreach. Not following a process, asking their questions, or following up with your team is a red flag that they aren’t taking the engagement seriously.

Conclusion

An ERP evaluation plan is critical to improve your organization's ability to purchase an ERP system suitable to its needs. Also, advance knowledge of ERP salespeople’s potential tactics, questions, and actions will help your team have ready answers when the occasion requires them. By being prepared for what your potential ERP vendors will ask, your team will be in a better position to manage the ERP evaluation process and align potential ERP vendors with your plan, ultimately resulting in a successful ERP selection that will benefit your company for years to come. ?

References:

144 Key ERP Statistics 2021: Analysis of Trends, Data and Market Share written by Jenny Chang

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