How to Select your ERP Solution
Justin Hickey
I help Healthcare Systems provide effective supply chain services through the implementation of impactful technology and processes that provides needed inventory visibility/control, aiding in positive patient outcomes.
Enterprise Resource Planning (ERP) software has become an essential tool for businesses of all sizes and industries, as it helps to streamline and integrate their key business processes. The selection of an ERP solution is a critical decision for any organization, since it can have a significant impact on the company's operations, efficiency, and bottom line. In this short article, we will cover some key points to include in your ERP selection process that can help you choose the correct solution for your organization.
The first step in the ERP selection process is to define your business requirements. This involves identifying the specific areas of your business that require automation and the functionalities that you need from an ERP system. You should involve your key stakeholders in this process, including managers, department heads, and users, to ensure that you have a complete understanding of your business requirements.
Once you have a clear understanding of your business requirements, the next step is to research the ERP market. You should identify the different vendors that offer ERP solutions and assess their capabilities and offerings. You can also use industry reports, analyst reviews, and customer feedback to evaluate the suitability of each vendor's solution.
Based on your research, you should develop a shortlist of potential ERP vendors that meet your business requirements. You should also consider factors such as vendor reputation, track record, and financial stability in making your selection. Your shortlist should include at least three to five vendors that you can evaluate and research further.
Once you have a shortlist of vendors, the next step is to conduct demos of their ERP solutions. This will help you get a better understanding of how the system works and how it can meet your business requirements. You should involve your key stakeholders in the demo process to ensure that everyone has a clear understanding of the system's capabilities.
The total cost of ownership (TCO) is an important factor to consider when selecting an ERP system. TCO includes the upfront cost of the system, implementation costs, ongoing maintenance and support costs, future licensing/user growth, and the cost of any customizations. You should evaluate the TCO of each system on your shortlist to determine which one offers the best value for your investment.
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Is the core technology at the heart of the system ancient, or is it bleeding edge? You will want to determine if the system has been built to ensure usability, flexibility, and security. Confirm if the technologies have been around for a while and have a solid track record or if they are new, with a short history of stability. You will want to know if an application is boot strapped and cobbled together. You want to select a solution that is solidly built and follows strong development and security standards.
The ERP system you choose must integrate seamlessly with your existing systems, including any third-party software that you use (WMS, QMS, MRP, HRM, EHR, EDI, Cloud Services, etc.). You should evaluate the integration capabilities of each ERP system on your shortlist to ensure that it can interface with your existing systems.
Will the vendor be there for you now and in the future? Evaluate the vendor's support and maintenance capabilities. This includes assessing their response time to support requests, the quality of their support services, and the knowledge base of their support resources.?Get feedback and reviews from current and past organizations/users. You should also consider the vendor's track record in maintaining and updating their software and how they handle fixes/revisions.
Whichever vendor application you choose, you will want to understand their culture and how they approach clients and their projects. Will their leadership/implementation team be a true partner from pre to post go live or will they look at you just as their next big pay day for the quarter? Finding a vendor that strives to understand your organization's requirements, echo system, and be able to deliver an application that drives value. This should be a critical component in your selection process.
In conclusion, selecting the right ERP system for your business requires a comprehensive and structured process. By using some or all of the outlined points in this article, you can ensure that you are on the right path to choosing an ERP vendor and solution that meets your business requirements. One that offers the best value for your investment and integrates seamlessly with your existing systems, applications, and services.
What other points would you include in your assessment of ERP solutions and vendors? What success or failure stories do you have?
Healthcare | Highly Accomplished and Experienced People, Process, and Technology Transformation Champion
1 年I think you you covered all of it Justin! We’ll done.