Navigating ERP Selection Pitfalls: Discuss These Key Questions With Your ERP Consultant Today!

Going through the process of ERP implementation can be overwhelming for any business owner, especially for a small business that has no prior experience with ERP - and with so many options available and no comprehensive ERP evaluation checklist, it can be even more difficult to make the right decision.?

ERP systems can transform your business by automating processes, streamlining operations, and streamlining your operations. This is why it is important to choose the right ERP system for your business, tailored to your specific needs and budget.?

So, let’s take a look at some of the most important factors to consider when choosing an ERP vendor for your business:

Publisher Insights

There are several things about ERP publishers that determine if you will be successful in your ERP implementation. Therefore, it is important to note down important questions related to them for proper discussion rather than focusing only on the product or the functionality of the ERP system. These questions include:

???-? Origins: Know the creators behind the product. Major ERP vendors like SAP, Oracle, Microsoft, and Infor carry distinct strengths and weaknesses.??

???-? Customer Base: Analyze the vendor's clientele. A publisher aligned with businesses of your size and industry ensures tailored attention.

???-? Company Size: The size of the publishing company matters. Opt for a vendor whose scale complements your business requirements.

???-? Market Share: Evaluate the vendor's standing in the ERP market. A significant market share indicates reliability.

???-? Financial Stability: Assess the financial health of the publisher. Profitability is a key indicator of long-term reliability.?

Product Evaluation

It is likely that questions that relate to the product are going to be on your ERP system evaluation checklist, but you might not have all the macro-level questions, such as product install base, which is equally critical for your ERP selection. Therefore, other questions that you may want to include are:

???- Industry Alignment: Is the product designed for your industry and addressing specific needs?

???- Last-Mile Functionality: Does the ERP system offer the precise functionality your micro-industry requires?

???- Installation Success: Gauge the number of successful installations, especially in your specific industry.

???- Customer Base Match: A product's success aligns with a customer base similar to your business size. Is that the case with the product?

Customization Concerns

???- Add-On Ownership: Would there be any add-ons involved? Clarify ownership of the add-ons and review associated contracts carefully.

???- Level of Customization: Understand the extent of customization required to align with your unique processes.

Pricing Transparency

???- Model Fluidity: Assess the flexibility of the pricing model, be it per-user, consumption-based, or concurrent.

???- Price History: Inquire about price fluctuations over the last 5 years to anticipate future trends.

???- Pricing Lock-In: Check if the vendor can secure pricing for an extended period (3-5 years).

???- Payment Options: Explore monthly payment alternatives for enhanced financial flexibility.

Roadmap

• Can the product support all of your business models and processes as of today but also in the next 5-7 years?

Data Ownership

• Who owns the data?

• Where is the data stored?

• Is the vendor-friendly enough to let you export the data or provide access to it when you need it?

In summary, choosing the right ERP system involves careful consideration. From understanding the publisher and evaluating the product to ensuring pricing transparency and data ownership, each factor is absolutely crucial.?

If you want more insights on other important factors and questions to ask your independent ERP consultant, you’ll find them here. Your journey to making informed decisions for streamlined operations and enhanced efficiency starts right here, right now!